With Nintendo's DS and DS Lite clearly showing the most momentum in the portable gaming space (who knew that a dedicated product could trump one with more bells and whistles?), word on the the street is that Sony is expected to drop the PSP's retail price down to $150. American Technology Research's P.J. McNealy feels that a slew of popular games such as Brain Age and New Super Mario Brothers have given the DS a much-needed boost in popularity, while the multimedia-centric PSP hasn't had a real hit since the last Grand Theft Auto title. Combined with the fact that the UMD is all but dead, McNealy believes that Sony's gotta do something to reinvigorate interest in its portable device, and a price cut seems like the best way to woo potential DS purchasers away. At $150, the newly-priced PSP wouldn't be that much more expensive than Nintendo's offering, and the company's recent push to offer movies on MemorySticks might be just the differentiating factor that would convince consumers to choose feature sets over games. Still, with its innovative input system and non-traditional titles, the DS would seem to appeal to a larger potential audience than the PSP, so even a price drop might not be enough to turn things around for Sony.

[Thanks, Scott]

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PSP to see $50 price cut, sez analyst