Sony has announced that the PSP-3000 system will now retail for $129.99, just a few weeks ahead of the release of the Nintendo 3DS. Also, PSP Entertainment Packs will be available for $159.99; both prices reflect a roughly $40 price cut.

“We at PlayStation have always been committed to delivering value and offering you the unparalleled gaming experiences,” said Scott Steinberg, VP of Product Marketing. “That said, we re also adding a slew of new blockbuster titles to PSP s ‘Greatest Hits’ and ‘Favorites’ collections. New additions to the $19.99 PSP Greatest Hits library include Assassin s Creed: Bloodlines, Dissidia Final Fantasy, LittleBigPlanet PSP, Metal Gear Solid: Peace Walker and Toy Story 3: The Video Game, while Daxter, Tomb Raider Anniversary and more are now priced at $9.99 as part of the PSP Favorites library.”

Source: PlayStation.Blog