Sony has dropped the price of it’s PS3 games console to €249 in Europe, $249 in the US and 24,980 Yen in Japan for the 160GB model as it hopes to entice gamers to the platform in the run up to Christmas. 

Announced at the European games convention Gamescom in Germany on Tuesday the 320GB model will also be taking a price cut to €299 / $299 / 29,980 Yen.

Amazon is listing the 160GB at £192. In comparison the 250GB Xbox 360 console, without a Blu-ray drive retails for £148

The new pricing will be immediately effective for North America and Europe/PAL territories, and starting August 18, 2011 for Japan.

While a price reduction will attract potential PS3 owners, it is high quality games that will keep new and existing customers gripped, and Andrew House was keen to highlight the “experiences that aren’t just exclusive to PS3; they are only possible on PS3.”

The company also used its keynote speech at the show to launch a new PSP. 

The new “budget” model will be called the PSP E-1000 and will cost just €99.99 (RRP), accompanied by an exciting range of PSP Essentials titles that will retail at only €9.99 (RRP) and will include Invizimals: The Lost Tribe, EyePet Adventures, FIFA 12 and many more.

While PSP E-1000 does not include Wi-Fi, it will still provides access to the full catalogue of PSP games either on UMD or from PlayStation Store via Media Go. The design is also slightly different, with a Charcoal Black finish – the same as on the slimmer PS3 model – to give more of a matte feel.