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14 Jul 2009

Upset about PSP: Go Pricing? Don’t Blame Sony!

Disclaimer: This is an editorial based on opinions that may or may not be rooted in fact.

The announcement of the PSP: Go (worst kept secret of E3) was met with mixed reception by consumers.  The main deterring factor was that despite the exclusion of a UMD drive, this new PSP model is set to retail for $80 more than the core PSP-3000 SKU is selling for currently.  Granted, this new system is lighter, slimmer, and altogether sexier, but when the only added feature is Bluetooth connectivity, how can that pricetag be justified.  The answer is simple:  Sony’s not making the money on it.  Because there isn’t a major difference in the actual innards of the system from its predecessor, the manufacturing cost cannot be that much higher.

With a console that is strictly dependant on digital distribution, retailers would be reluctant to stock such an item unless they were actually making a good deal of profit on it.  Remember the articles about European retailers refusing to carry the PSP: Go?  Well, despite Sony refusing to admit that there was ground to theses claims, it leads me to think that retailers are getting compensated with their cut from the console sales since these purchases won’t lead to further game sales from their retail location.  Essentially, gamers and their wallets are being punished because Sony is trying to make portable gaming more accessible to everyone, since they are trying to bypass the middleman in the process.

So, keep this in mind on October 1st when you’re staring at a $249 price tag on a PSP: Go!  Your hard earned money isn’t going to end up in the hands of Sony, but the retailers that are getting a bigger cut of the profits just so that won’t be tempted to refuse to carry the stock.

Please leave your comments and thoughts below!

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Tags: Downloads, e3, Games, Portables, psp, PSP: Go!, Retailers, sony

This entry was posted on Tuesday, July 14th, 2009 at 6:56 pm and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

  • Decoy
    I don't understand why retail stores are so scared? they will still get a box to sell with a voucher for the game like Patapon 2. or they can still sell psn dollars. But it would be intersting to see if they are giving margin for the units to retail stores.
  • Will
    They didn't say that all games would be both Retail and online, they just said that from October 1st on, all PSP games would be downloadable as well...

    That doesn't say anything about them not being able to publish a game that strictly digital distribution
  • thekingofpop
    GOD DAMN MIDDLEMAN If GAMESTOP would just BLOW UP already this wouldnt even be a problem, used game sales is all these guys are worried about, and be GS is at the head of this its ALL THERE FAULT!!! HEY EVERY1 listen to me SELL YOUR GAMES ON AMAZON its a garrentee return on a new game worth 60 youll get 45 min back once some1 buys it!!! dont waste your time or lose more money trading in a BRAND NEW GAME at GS and only get 25 $ in return WHAT A RIP OFF!!!! I've been doing it for 2 years now Ill buy a game Beat it sell it 2 months later for 45$ on amazon, Once I post my game it only days before some1 buys it.. FUC* GAMESTOP WASTE OF YOUR MONEY AND IT GOIN TO TAKE DOWN THE VIDEO GAME INDUSTRY!!!
  • daveyapples
    If I was a retailer I would refuse to sell it too. Its ridiculous to say retailers make 30-40 per console. I work in a large retailer too we make roughly $10 if that per consoles
  • Bandage
    Awwww, those poor poor large chain retailers. Must be suffering with all their 120 stores.
  • rype
    One thing to note is that if Sony did say they would release the PSP Go at a cheaper price then that would basically halt sales of the old PSP until the new one comes out. For now, the old PSP looks like a bargain.
  • Name
    It's about time that retailers get compensated for buying a chunk of hardware. Currently, they lose money each time because of the price to ship it.
  • nimbuster
    What? I can tell you NO retailer loses any kind of money when selling a console. I work retail and consoles make about $30 to $40, plus $10 or so for each item/game. And shipping costs, seriously? They come on a truck with thousands of items, about $100,000+ profit worth, which is WAY more than any shipping costs.

    Back to the article though, finally someone has the correct excuse for Sony' PoSP Gay!. I've been explaining this same reason to people, and so far almost no one I know (PS fanboys included) will be getting this. Why? just why? no backwards compatibility? Smaller screen? The retailers accepted this offer because they know they'll prolly make more money than Sony will selling games online. Sony is grasping at straws. I hope Activision does drop or limit support so everyone can laugh at Sony.

    Sony has forgotten the reason to charge more for their products. It is for reputation and quality. It is already the most expensive handheld, so why take out more than you add and then raise the price? That's just greed, and like Wal-Mart, I hope justice and irony will eventually end these companies!
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