Sony's press conference at Gamescom ended with a revised €249 ($249, ¥24,980) price point for its home console, while a new version of the handheld PSP will cost €99.
That cheaper PSP drops its predecessors' wifi capability, meaning that games from the PlayStation Network must be downloaded to PC first, rather than directly onto the machine itself.
Unlike the digital only PSPgo, the E-1000 model can play games from memory stick or UMD discs, and Sony announced a range of PSP Essentials at €9.99 ($9.99, £9.99), even including FIFA 12.
The new model has been announced for PAL regions, meaning that African and Asian regions could be included in the designation, along with Europe and Australasia.
Of course, the PSP's successor isn't far off, though Sony avoided giving a release date for the PS Vita at this point. Instead, the Tokyo Game Show in September is a more likely platform for news on that front.
The PS3's price reduction puts it on a better footing to compete with the Xbox 360 S, introduced in August 2010 and with a base model available from $199 (€299, £249).
It's a move not too different from Nintendo's recent 3DS markdown, chopping up to a third off in a bid to boost sales.
The revised price for the PS3 is effective immediately, while the PSP E-1000 is to be introduced before the end of the year.
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