[Original Story] Just over a year since it released, Sony's UMD-less handheld will see a price cut in the United States and Japan. The PSP Go will now retail for $199 in the States (down from $249) and 16,800 yen in Japan (down from 26,800), SCEA and SCEJ confirmed today (via Reuters).

There are a few reasons why Sony may have decided to drop the price of the digitally-focused portable device. Last month, Nintendo confirmed its new handheld--the Nintendo 3DS--would not be available until 2011. The company also reduced the prices of its own line of portable DS products. With suspicions that a PSP2 announcement is looming around the corner, a PSP Go price cut could help make room in dusty warehouses worldwide.

When the PSP Go launched in October 2009, critics panned Sony for the device's price. Sony has since called the PSP Go an "experiment." With some big titles completely skipping digital release, it's easy to see why some PSP Go users are frustrated.

Shacknews has contacted Sony regarding the continuation of free game promotions attached to the PSP Go prior to the price cut and whether Europe should expect a similar price drop. Sony had not yet responded at the time of this publishing.