Sony will cut the price of the PSPgo by £65 on 1st November.
It has an RRP of £225; it will retail for £159.99.
The download-only handheld has also seen a price cut in Japan (now ¥16,800) and in the US (now $199).
The PSPgo, launched in the west last October, has been a commercial flop for Sony, although some rumours suggest it was an experiment ahead of the much-rumoured PSP2.
In May Sony CFO Bill Glaser called PSP sales "a little bit of a disappointment".
In June Sony launched a new initiative: buy a PSPgo and get 10 free games worth £225.