PSP Go price comparison

In the recent Sony press conference at E3 they announced the price of the, recently leaked, new Playstation Portable the ‘PSP Go’ and the price came at a bit of a shock at $250, in the UK it is going to be sold for £230. 

That it is a lot, as a comparison here are other things you can buy for that amount of money.

An Xbox 360 Elite

x2 PSP Slim

x7 Newly Released games

And as of the 8th of June 2009 £230 would equal $370

I can understand why it is this much, with Sony not in a great place right now financially they don’t want a product on the market which is going to lose them money, but still this is the same price as it was when the original PSP came out. It plays the same games as the PSP and has the same specs, so it surely won’t be as much to produce as it did 5 years ago also this has no UMD drive, which would no doubt put extra cost on production of the PSP so they’re saving money there, the only thing extra I can see is the 16GB inbuilt memory, also the fact that it is smaller. But I still can not see how Sony can justify this price.