Sony is slashing prices on the PSP-3000 in preparation for the introduction of the new NGP, or Next Generation Portable game console. The PSP handheld gaming system, which sells for $169.99 will see a $30 price drop to $129.99 beginning February 27.

If reducing the price of the PSP isn’t enough, Sony is reducing the price of some of the most popular PSP game titles. Some will be lowered to $19.99, while others can be had for $9.99 each. PSP Entertainment Pack bundles, which put games and UMD movies with the PSP, will be sold for $159.99.

The PSP Go is a newer, smaller model of the PSP that currently retails for approximately $200. It received a reduction in price back in October, 2010 from $250 to its current price. No mention of any new price cuts for this system has been made.

The NGP uses flash cartridges for storage instead of the UMD optical media utilized by the PSP. It also has several more modern input methods, including a touch screen and a rear touch panel. The NGP supports physical media as opposed the download-only media of the PSP. The NGP is expected to be released in late 2011, just in time for the holiday season.