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Sony Computer Entertainment has started to slash the price of their struggling hand held PlayStation Portable (PSP) handheld gaming system.As of today the price of the device has been dropped $130 in the USA. In Australia the device is selling at Harvey Norman for $279. Several web sites in the USA are offering to ship the device to Australia.

The big price drop comes after Sony said that they are set to make their games available on Smartphones in the future via an application download service.

Since the launch in 2005, the PSP system has sold 67.8 million worldwide, SCEA said. More than 590 titles are available for the game player, users can access a large library of downloadable content from the PlayStation Network.

In addition to the new price point, Sony said 13 new games will be added to the PSP Greatest Hits and $9.99 Favorites software collections.

Greatest Hits titles are being offered in the USA for $19.99.  Some of the new additions to the nearly 70-title collection include: Assassin’s Creed  Bloodlines (Ubisoft); Dissidia Final Fantasy (Square Enix); LittleBigPlanet (PSP); Metal Gear Solid: Peace Walker (Konami Digital Entertainment); Ratchet & Clank: Size Matters; Resistance: Retribution; and Toy Story 3: The Video Game (Disney Interactive).

In Australia the same games are selling for $39 dollars and above.

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