Foster City, Calif. - Sony Computer Entertainment America on Tuesday slashed the price of its PSP by $30, with the handheld game system to sell in the U.S. now for $169.

Nintendo's rival handheld -- the DS -- is currently available for $129 from many online retailers.

Sony said it shipped nearly 25 million PSP units in 2006, and sold over 1 million in North America in December alone; more than 90 million PSP games also shipped in 2006.

Sony recently began offering PSP owners the ability to purchase and download retro titles to the PSP, provided they also own a PlayStation 3 that can connect to the online PlayStation Store.

Upcoming PSP titles include "SWAT," "Monster Hunter Freedom 2," "Castlevania: The Dracula X Chronicles" and "Tales of the World: Radiant Mythology."

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