The 16GB Nexus 7 was released the same time the 8GB model was and as we've suspected, the base model appears to be phasing out. While we haven't seen any price cuts just yet here in the states, the UK is already on it with the 16GB version.
A retailer by the name of Currys has dropped the price on the 16GB Nexus 7 from £199.99 to £189.99 while Comets has dropped the price from £199.99 to £179.99. While not a massive decrease, this is still a decent price drop for those who haven't picked up the awesome tablet yet.
This decrease signifies the incoming of the 32GB Nexus 7 which could be around the same original price of the 16GB version, albeit a bit more. Either way, hopefully this is a sign of what's to come in the United States and those looking for a sweet deal may just get one.
Although, I'd recommend holding off until pricing is released for the 32GB, unless of course you're perfectly content with 16GB of storage.