In the US Nintendo is the first to reach for pre-Christmas price cuts to stimulate its handheld gaming sales, the DSi and DSi XL. The price cuts are due on September 12, and are about in line with existing discounted online pricing at $150 for the DSi and $170 for the DSi XL. The DS Lite will stay at its current price of $130.
In contrast the high priced Sony PSP Go, still at $249, is way out of whack with Nintendo pricing, which is why it is selling so poorly by comparison and why there has been a rumor of a price cut and/or a re-launch of the device, since February, but it has still not materialized.
It could be that Sony is letting the PSP wither on the vine in preparation for its widely anticipated PSP phone, expected out by some in the next few months, but not yet confirmed by Sony.
The price cut will put further pressure on Sony, given that in July NPD showed that US sales of the Nintendo DS was 398,400, while Sony shipped just 84,000 PSPs. The DS range has sold over 43 million devices in the US alone.
In the console market US sales are currently dominated by Microsoft, with its new Xbox 360 Elite, which drove sales of the Xbox 360 to 443,500 in July ahead of both the Wii on 253,900 and the PS3 on 214,500.
So price drops are due across the board at Sony, and Nintendo may also follow up with some reaction to the new Xbox 360 shortly, to correct US sales of the Wii and put it back on top, where it has been for the last few years.