Sony will release PSP at 19,800 yen. The price was a surprise to most people as industry has been predicting that Sony will release this at around US$250-US$300 given the high specs of PSP as a mutlimedia device. Although the cost is not known to the public, it is quite safe to say that Sony will take a loss with every set sold at least at the beginning. As much as Nintendo wants to deny this, this will be a direct competition with Nintendo's GBA DS.
The full specs have also been announced most of which is already known except it is not confirmed that in addition Sony's ATRAC3 plus, PSP will support MP3 natively.
Details of the announcements:
Price: 19,800 yen.
Release Date: Dec-12-2005
Package includes: PSP, AC Adapter and battery pack
Sony will also sell bundled set called PSP Value Pack for 24,800 yen which includes the following:
* PSP
* AC Adapter
* Battery Pack
* MS Duo (32MB)
* Headphone (with remote control)
* Softcase and strap
The following accessories will go on sales on the same day:
* MS Duo (32MB) - 2,800 yen
* AC Adapter - 3,500 yen
* Battery Pack - 4,800 yen
* Headphone (with remote control) - 2,800 yen
* Softcase and carrying strap - 2,000 yen
Release details:
http://www.scei.co.jp/corporate/release/pdf/041027a.pdf
Game Titles (list as of Oct-27):
http://www.scei.co.jp/corporate/release/pdf/041027c.pdf
A link to ITMedia with some pictures of the packages:
The first one is the standard pack while the second picture is the PSP Value Pack:
http://www.itmedia.co.jp/games/gsnews/0410/27/news08.html
Thanks Eugene!