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First of all - PSP GO costs ~ 250$ simply because Sony want to make some money on early adopters. I'm entirely sure PSP GO is cheaper to develop than PSP Lite

- smaller display /3,8" in place of 4,3"/

- smaller and simpler casing

- no UMD

- with smaller energy consumption there is the space to use smaller battery capacity and keep current performace

- shorter production line

They have added

-bluetooth

-M2 port

PSP GO will cost as many as standard PSP soon. Maybe even before Christmas. Mark my words. This is a price for a special group of costumers.