Sony Have Confirmed They Are Not Responsible For PSP Minis' Pricing.

Which are pretty high to be fair. Sony have admitted to Joystiq this is not their fault.

Sony's Eric Lempel said of the service, "As far as pricing goes, the publisher of the title sets the pricing." So it's totally possible to release a $1.99 PSP Mini then? "Yes, absolutely."
"I think they [the publishers] have to carefully look at that, carefully price their content. Minis was intended to be something a little different and we wanted to see a lot of different types of content through minis. If it's not priced correctly, consumers may be turned off at the proposition and say 'I'd rather just go for this kind of stuff instead of minis.'"</blockquote>

Perhaps it's time Sony stepped in and started inflicting some pricing limits to ensure the service doesn't die out before it's started. From what we've seen of Minis the content looks great. But alas, yes, the pricing is all wrong.