As expected, Sony has dropped the price of its PSP go mobile gaming console from $249 to $199.

The move comes just in time for the holiday shopping spree and it should make the PSP a tad more competitive.

However, in addition to Nintendo's DS, the slim PSP go is also facing some in-house competition in the form of the PSP-3000, which sells for $169.

It's unclear whether Sony will adjust PSP-3000 pricing anytime soon. However, it seems unlikely either PSP can take on Nintendo's highly successful DS.