Sony drops PSP price to $130

With its next generation portable system looming, Sony is giving the PSP one last moment in the spotlight. Effective this Sunday, the company will cut the retail price of its portable gaming system by $40, from $170 to $130.

The move not only lets Sony access a new audience with the PSP, it lets the company get out in front of the launch of the Nintendo 3DS, which will hit shelves on March 27.

Read more at Yahoo! Games

GDC 2011: What to expect

In terms of big splashes, the Game Developer Conference generally pales in comparison to E3. But even though it might lack a circus atmosphere and onslaught of new product announcements, that doesn’t mean there’s a lack of news.

This will be the 25th time industry developers and executives have gathered to network, seek inspiration and learn more about the industry of making games. Started in a developer’s living room in 1988 with roughly 25 people attending, this year’s show is expected to welcome more than 18,000 attendees to the Moscone Center in San Francisco when it kicks off on Feb. 28.

Here are a few of the topics you’re likely to see make the headlines:

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Sony unveils the PlayStation Phone

Tired of Apple hogging of the spotlight in mobile gaming, Sony has unveiled the world’s first cell phone that will play PlayStation games.

The Xperia Play, made by the company’s Sony Ericsson division, will launch this March. The Android-powered phone will come with several titles preloaded (including The Sims 3) and up to 50 games from the system’s top franchises available for download.

Read more at Yahoo! Games