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Sony said Tuesday it will cut the price of its handheld PlayStation Portable game device 15 percent, or $30, to about $170 as it battles Nintendo's rival DS handheld.
"The PSP needed a price cut to reinvigorate the market. Wal-Mart (up $0.80 to $48.20, Charts) sold the PSP for $169 for five hours on Black Friday - a time in which we believe the company was able to sell over 100,000 pieces of hardware," BMO Capital Markets analyst Edward Williams said in a client note.
The PSP is in its third year of production, and lately has been outshined by Nintendo's (Charts) popular DS.
Williams said that main beneficiaries of the price cut should be video-game retailer GameStop (Charts), and to a lesser extent Take-Two (Charts), which has a healthy lineup of games for the paperback book-sized device.
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