After the news about PlayStation 3, we were wondering what next Sony had up their sleeve. Now we know. Sony announced that the uber-cool Sony PlayStation Portable console (PSP) will be available in a new hardware package retailing in at just US$199, breaking the $200 price point. Oh yeah, and it includes the AC adaptor and battery as well, in case you thought they'd be missing.

All game titles, movies, music and wireless networking are compatible with the new PSP. With 107 games and nearly 350 movies, that's a lot to look forward to. Video playback for H.264 and AVC MP Level3 are integrated, so movies stored on a Memory Stick Duo card can easily be viewed on the console.

Yes guys, the $200 barrier has been broken and now Sony looks set to rake in more customers for their console.

Just in time for the PSP's first birthday (March 24), the new PSP will be available starting March 22 for, you guessed it, US $199. More info is available from http://www.playstation.com/.