Sony announced price drops for its PSP device, which comes pretty expected as the company’s Next Generation Portable is on its way. In an attempt to boost sales, Sony has also announced moving existing titles to its “Greatest Hits” and “Favorites” categories.

PSP’s previous pricing of $169.99 melted to $129.99 and the price is official starting yesterday. While this is definitely too late for the PSP to come anywhere near the high-flying competition, it’s probably not too little for users who now need to pay $40 less. However, note that the lower price applies only to PSP-3000 models and not the PSP Go.

Sony also moved some popular titles in its “Greatest Hits” and “Favorites” categories. As of yesterday, titles such as Assassin's Creed Bloodlines (Ubisoft), LittleBigPlanet (Sony), Metal Gear Solid: Peace Walker (Konami), Resistance: Retribution (Sony), Toy Story 3: The Video Game (Disney) and some others will retail for $19.99.

At the same time, Crisis Core Final Fantasy VII (Square Enix), Monster Hunter Freedom Unite (Capcom), Killzone: Liberation (Sony), Tomb Raider Anniversary (Square Enix) and some others are now in "Favorites" category and will retail for $9.99.

More here.