There are some rumours that Sony may drop the Sony PSP price by $50.
Given that, it's not surprising to be talking about a PSP price cut now. Sony hasn't confirmed anything yet, but apparently they're "stockpiling hardware", which is a big red signal to those analysts out there, who are predicting a $50 drop before the holiday season.
In other words, PSP core units could drop down to $149 before the year's over, and that may even include some kind of game bundle. It's a good move for Sony to gain some ground, as it would be very close to the DS's $129 price point.