Sony just announced that they will be lowering the price to the $129.99. Along with the lowering the price of the PSP Sony has also lowered the price on some their games.
From Playstation:
“Since launching in 2005, the PSP platform has had a profound impact on the way we play games while on-the-go, pushing the boundaries for cross-media entertainment and setting the benchmark for quality for portable games – not to mention selling 23 million* units to date in North America and more than 67 million worldwide. Today we’re very excited to announce that the PSP-3000 system will be available for a new low price of $129.99 (MSRP) starting February 27, 2011, offering its greatest value to date. In addition, going forward PSP Entertainment Packs will be available for $159.99 (MSRP); bringing you everything you need to experience the PSP system and an even better value.”
New PSP “Greatest Hits” Titles ($19.99)
New PSP “Favorites” Titles ($9.99)
Read More here