Sony has taken the axe to a variety of prices, producing a number of very intriguing bargains for the thrifty gamer.

This shouldn’t be a surprise to anyone, but the PSP is getting slashed, in anticipation of the PSP2 later this year (or early next year, but if they’re smart, it’ll be out for Christmas). Starting February 27, 2011, the PSP system will be available for $129.99.

Also getting the price cut are a series of titles being added to the PSP’s Greatest Hits and Favorites Collections, and the PS3′s Greatest Hits Collections. The Greatest Hits collection of $19.99 titles will be welcoming Assassin’s Creed: Bloodlines, DISSIDIA Final Fantasy, LittleBigPlanet, Metal Gear Solid: Peace Walker, Ratchet & Clank: Size Matters, Resistance: Retribution and Toy Story 3. Joining the $9.99 Favorites line are Crisis Core – Final Fantasy VII, Daxter, Monster Hunter Freedom Unite, Killzone: Liberation, SOCOM US Navy Seals: Fire Team Bravo and Tomb Raider Anniversary.

For PS3 owners, five titles are getting the Greatest Hits designation: God of War III, Heavy Rain, ModNation Racers, UFC Undisputed 2010 and Uncharted 2: Among Thieves – Game of the Year Edition. You really can’t go wrong with any of these choices, though for the family, the only really appropriate choice is the excellent ModNation Racers.