Following news that US retailers GameStop had EB Games have slashed the price of the PSP Core Pack from $199 to $169, Sony has confirmed that the move mirrors an official change to the handheld’s RRP.

The price of the high-end Entertainment Pack has also dropped by $50 to $199.

“Importantly, this is the first formal price cut on the PSP since its launch in March 2005,” Lazard Capital’s Colin Sebastian stated. “Sony is planning to support the pricing move with a new print and online marketing campaign targeted at young adults and teens.

“We expect a modest step-up in PSP unit sales during an otherwise seasonally slower period for the games industry. We also believe that the potential release of Gran Turismo for the PSP in the second half of 2007 could further boost unit sales.”

The PSP Core Pack currently retails for £149.99 in the UK. Though the new North American street price sees the unit fall below £100 for the first time when exchange rates are taken into account, if a European price cut is to follow it is unlikely to take the PSP below the £100 mark.