Americans can now grab Sony's PlayStation Portable (PSP) handheld for merely $129.99, considerably less than its previous price of $169.99.

The new price became effective from Sunday, February 27. However, the price cut applies only to the PSP-3000 models, and not to the PSP Go.

Sony claims that it hacked the price in order to allow the best-in-class gaming device reach a larger customer base. But, it should be noted here that the price cut has emerged as Sony is paving way for its next-generation PSP (NGP) that is expected to become available before the end of 2011.

Sony has also announced that its Greatest Hits & Favorites Collections will feature new games. New additions to Greatest Hits will include "Assassin's Creed: Bloodlines," "Metal Solid Gear: Peace Walker," "Dissidia Final Fantasy," "Resistance: Retribution," "LittleBigPlanet PSP," "Toy Story 3: The Video Game," and "Ratchet & Clank: Size Matters," and will cost $19.99.

The list of PSP Favorites titles will include "Crisis Core-Final Fantasy VII," "Socom U. S. Navy Seals: Fire Team Braov," "Monster Hunter Freedom Unite," "Tomb Raider Anniversary," "Daxter," "Killzone: Liberation." This pack will cost $9.99.

Sony has plans to begin a new TV and digital marketing campaign to publicize the price drop.