According a new 1up story, retailers have banded together to demand Sony drop the price of their PSP handheld. Lagging sales have forced several big name retailers to re-think whether the system is even worth keeping on store shelves.

"With shelf space at a premium, the expectation is for Sony to do something substantial to keep its hardware moving - or else."

It's been nearly two years since the system was released, so another price drop at this point would make a lot of sense. The system has already seen a $50 drop in price since launch, but still costs considerably more than the Nintendo DS, which has enjoyed considerable success across all markets, and continues to outsell the PSP by a large margin.

At a recent convention, no price drop was announced, but retailers reportedly got all excited about something else Sony revealed to them. Could new PSP colors be on the way, or perhaps the PSP2 is closer than we originally thought?