Over the years the PSP has been a dying portable gaming system, so it is no surprise that they would be dropping the prices, but by far this is the most dramatic drop. This price drop is due to the upcoming release of the Next Generation Portable is available. For something which has the most powerful graphics of any handheld at current the price tag of $130 is more than reasonable. In addition to the PSP 300 being so cheap there are also great games such as Metal Gear Solid, Little Big Planet, and Assassins Creed which are available for a mere $20. This will probably cause Sony to have their best PSP sales since it was first released. I think that if you have been waiting for a PSP, but it has been to pricey for you now is definitely a good time to buy one.

Sources: Engadget Playstation Blog