Sony reduced the price for the Sony PSP to $169.99.
The Sony PSP Core sold for $199.99 so far.
A Nintendo DS Lite can be had for as low as $130 )(see offers).
Sony could have been a bit more aggressive for my taste and get the price under $150.
Sony also added Daxter and Syphon Filter: Dark Mirror to the Greatest Hits collection, which drops the price of these games to $20.
More details on Kotaku.