Tiger to shred Gizmondo price

European admirers of the Tiger Telematics Gizmondo will soon have an opportunity to purchase a cheaper version of the handheld gaming device. Tiger Telematics has announced that the new Smart Adds Gizmondo will retail for 129 pounds when it goes on sale April 22 in the UK, as compared to the price tag of 229 pounds placed on the current model. The reason for the 100-pound price drop? The device will send up to three advertisements over the device to users per day.

Gizmondo has intimated that the unit will play video ads when users enter the "Home" screen on the device. The company also hints that some ads may include coupons, discounts, and location-based offers. The ads won't be random spam, either. Vendors will hawk wares and services based on the user's selected demographic.

The Gizmondo ships with an integrated global positioning system locator, and advertisers may use this feature to direct consumers to the nearest vendor of their products after an ad has played.

Sue Elms, managing director of media research group Carat Insight, said, "This is one of the most exciting and innovative media experiments we've ever had the opportunity to examine. The Smart Adds concept is where all marketers will be aiming to be in the future, and our research will help outline its true potential for advertisers."

Sony's PSP, which has not yet launched in Europe, is considered to be the biggest threat to the movie-playing, music-downloading Gizmondo. Tiger expects the Gizmondo to ship stateside this year.