Sony's download-only handheld, the PSPgo, may be receiving a $50 price drop according to a memo sent through one retail outlet. If true, the system would now retail for $199.99 rather than the $249.99 it launched at.
Introduced just over a year ago (Oct. 1, 2009) the PSPgo has failed to cause the buzz that Sony Computer Entertainment Inc. (SCEI) would have hoped. The system eliminated UMD discs in favor of fully-downloadable games. Also introduced in time for the go's release were PSP Minis, which it could be argued were meant to be somewhat of an App Store rival. Minis were shorter, low-priced games meant to be 100MB or less and could cater well to the impulse buyer.
Currently, the iPod Touch starts at $229 for the 8GB model. The PSPgo comes in 16GB and will now retail for about $30 less than the iPod Touch.
Whether a more competitive price point will help the handheld sell remains to be seen.