Usually when a console debuts you can expect prices to remain stable for a while. The hype of the console sells it, usually at just about any price. The PSP Go, on the other hand, is already on sale at Fry’s for $199.

The price drop confirms that profit margins must be pretty wide on Sony’s new portable. Not too many people are buy the thing, and there isn’t exactly the same expected software revenue as other portables, so taking a loss really doesn’t make sense. With so few purchasers, it seems like Fry’s is just trying to be the only retailer to sell out of the device before the holiday season hits.

The deal is only good in-store until the 22nd, and may not be available everywhere so be sure to call ahead.

When Sony first announced the PSP Go, I decried the lack of a UMD drive. The nonexistent feature meant existing collections of PSP games could not be used on the new device. Then there was hope. Sony announced plans to implement a “good will” program by which PSP owners with UMD discs would be able to get a digital copy for use with the PSP Go.

Well it looks like that’s not going to happen. “We were evaluating a UMD conversion program, but due to legal and technical reasons we will not be offering the program at this time,” an SCEA spokesperson said today. The change makes the “upgrade” even less appealing for its October 1st launch.