Sony announced today that it will drop the price of its PlayStation Portable device by $40 to $129.99.

The price drop is effective February 27. PSP Entertainment Packs, meanwhile, will be sold for $159.99.

The company is also adding new games to its Greatest Hits and Favorites Collections. New additions to Greatest Hits, which sell for $19.99, include "Assassin's Creed: Bloodlines," "Dissidia Final Fantasy," "LittleBigPlanet PSP," "Metal Solid Gear: Peace Walker," "Ratchet & Clank: Size Matters," "Resistance: Retribution," and "Toy Story 3: The Video Game."

New PSP Favorites titles, which retail for $9.99, include "Crisis Core-Final Fantasy VII," "Daxter," "Monster Hunter Freedom Unite," "Killzone: Liberation," "Socom U.S. Navy Seals: Fire Team Braov," and "Tomb Raider Anniversary."

To publicize the price drop, Sony will start a new TV and digital marketing campaign, which features "fans" thanking Sony for making the PSP; video below.

"Since launching in 2005, the PSP platform has had a profound impact on the way we play games while on-the-go, pushing the boundaries for cross-media entertainment and setting the benchmark for quality for portable games – not to mention selling 23 million units to date in North America and more than 67 million worldwide," Sony wrote in a blog post.

The news comes almost two weeks after Sony Ericsson formally unveiled the Xperia Play, also known as the PlayStation Phone, at Mobile World Congress in Barcelona. The Android-based smartphone features a slide-out PlayStation controller, and will be available in the U.S. this spring from Verizon. For more, check out PCMag's hands-on with the Xperia Play.

This article, written by Chloe Albanesius, originally appeared on PCMag.com and is republished on Gear Live with the permission of ZDNet.