That price cut has now been confirmed with an official blog post from Sony Japan noting the cut. The PSP Go will get a price cut in Japan to 16,800 yen with tax included, which works out to about $208 here in the US.
That is very close to the $199 price leak and if you take the tax that is included away that leaked price should be accurate. That new price is about $50 cheaper than the PSP Go was before. I still don’t see a $50 savings making the Go any more appealing to most gamers. The real issue is still the fact that you can’t play any of your old games from your PSP collection on the Go.
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