Sony slashes PSP pricing

If you've got $170 lying around and want a new handheld video game device, Sony may well have just the solution. That's because the electronics giant said Tuesday that it will slash the price of its PlayStation Portable (PSP) to $170, down from $200, Reuters reported.

The price cut was necessary, according to analysts, as Sony attempts to keep pace with Nintendo's popular DS handheld device.

"The PSP needed a price cut to reinvigorate the market," BMO Capital Markets analyst Edward Williams was quoted by Reuters as having written in a client note. "Wal-Mart sold the PSP for $169 for five hours on Black Friday--a time in which we believe the company was able to sell over 100,000 pieces of hardware."

The Nintendo DS costs about $130, but the PSP can play full-fledged movies.