Sony Computer Entertainment has announced a price cut for both the PS Vita and 12GB PlayStation 3, which will now retail for €199 in Europe and $199 in North America.
For PS Vita, the drop to $199 represents a significant discount on the PlayStation handheld, which struggled to sell at its previous retail price.
The PS Vita previously retailed at a recommended price of $249 / €249 for the Wi-Fi model and $299 / €299 for the 3G model.
Sony declined to offer specific Vita data in its first quarter financial report recently, instead bundling together Vita and PSP sales, which came in at just 600,000, down from 1.4 million in the same period a year earlier.
But a Sony exec was willing to admit that the Vita "is not performing that well" at retail.
Sony's latest hardware sales guidance remained unchanged from its May outlook, with the firm still expecting to sell a combined total of five million handheld systems in the year ending April 2014.
Alongside the price cut SCE promised a "significant reduction" to the price of Vita memory cards. In Europe 4GB cards will retail for €14.99, 8GB for €19.99, 16GB for €34.99 and 32GB for €64.99.
Both Borderlands 2 and Fez will be released on Vita, Sony said today during its Gamescom 2013 press conference.
Sony also announced today that anyone who purchases a PS3 title from Activision, EA, Ubisoft or Warner Bros that is also coming to PS4, will be able to buy the digital version on the new console for a significantly reduced price.