PSP gets new low price: $199 for Value Pack [Update 1]

The latest Gamestop ad proudly proclaims that the PSP Value Pack has a new low price. The bundle, which includes a Memory Stick, headphones, and a case, now comes $50 cheaper at $199.99--that's the same price as the Core unit.

It's unclear at this time if this is a Sony-mandated price drop, or if it's a Gamestop-only promotion. However, considering how today is PSP's two year birthday, it makes sense to celebrate with a universal price drop. If the Core unit drops in price as well, PSP will almost be able to compete against Nintendo's handheld ... at least in terms of price.

[Via Gamespot]
[Update 1: Dave Karraker has e-mailed us stating "The PSP Value Pack isn't something we sell to retailers any longer. It is a discontinued model. So, the retailer can price it at any level they wish. It is not a universal price drop, just something GameStop decided to do."]