Sony announced that it will launch its next generation handheld device, the PlayStation Vita on December 17 in Japan but insisted that it will not reduce the price of the device despite its rival Nintendo slashing the price of its console.

Sony had previously said that the PlayStation Vita will not be launched in the U.S and European markets during the crucial fourth quarter but it will still start selling the hugely anticipated console in the Japanese market. The Vita will go on sale in the United States and Europe in 2012 but the exact date is still unknown.

Hiroshi Kawano, president of Sony Computer Entertainment in Japan, presented the domestic launch plans of the PS Vita to reporters before the annual Tokyo Game Show.

Sony also said that it will launch 26 new games with the PS Vita on December 17 and Japan's biggest mobile carrier, NTT Docomo will also provide prepaid 3G plans for Vita users.

Sony has been under pressure from its rivals, Nintendo and Microsoft who had cut prices on their consoles and with the burgeoning tablet market who had taken a chunk of the gaming market. Despite the criticism from analysts who think the PS Vita will be too overpriced, Sony has refused to cut the price on its console.

The PS Vita will cost 24,980 yen ($325) for a Wi-Fi only model and 29,980 ($390) for a 3G plus Wi-Fi version. U.S. prices of the Vita will be $249 for the Wi-Fi only version and $399 for the 3G model plus Wi-Fi.

The big three gaming consoles market shares have dwindled in the face of new smartphones and tablets that provide cheaper software and multiple functions than a dedicated console. Nintendo had already slashed prices for its own portable console, the Nintendo 3DS by nearly 40 percent and launched new software on Tuesday to pull in more consumers.

Sony insisted that the PS Vita will attract hardcore gamers despite its price because of its features which include a five-inch, multi-touch OLED screen with a pad on the back for finger motions.