160GB PS3 now $249, plus Sony announces new $99 PSP model

Sony hit Gamescom hard this year, with news that’s surely to entice anyone who skipped out on both the PlayStation 3 and the PlayStation Portable. First, the console maker revealed that it would be releasing a $99 version of the PSP, sporting a new design and lacking Wi-Fi. Yes, that’s right. Several months before releasing a new handheld, Sony’s coming out with an updated version of the old handheld. On the bright side, this new model does have the ability to play UMDs, which gives it a definite leg up on the PSPgo.

Even more interesting news came near the end of the press conference. Just as things were winding down, Sony revealed that it was slashing the price of the PlayStation 3 by $50 starting immediately. This means that anyone looking to pick up the 160GB PS3 can do so for $249.99, €249.99, or ¥24,980 (depending on where they live, obviously). The 320GB will get a similar cut - as will the various bundles that are available already. On that note, a new inFAMOUS 2 bundle is currently popping up in stores for $299, and if you’re looking to jump in now, this is likely the one to keep your eye on. It includes a 320GB PS3, a copy of inFAMOUS 2, and a 30-day membership to PlayStation Plus. This is a great deal, especially considering how amazing inFAMOUS 2 is. Seriously. It’s awesome.

Strategically, this is a big move for Sony. The company has always been just above the competition in terms of price, but this drops it right into the middle of things. It’s the first price cut the system has had in two years, and brings it right in between the Xbox 360’s $299 250GB model and the Nintendo Wii’s $149 Mario Kart bundle. Well, technically there’s an Xbox 360 available for $199, but it’s the 4GB system, and it’s not like that one actually counts.