Analysts, for some reason or another, are important to the industry. Colin Sebastian of Lazard Capital Markets commented on Sony's recent price drop of the machine, saying it will give the platform an important "shot in the arm." As the first official price cut since the product's launch more than two years ago, marketing will be crucial. Thankfully, according to Sebastian, Sony has a plan: "Sony is planning to support the pricing move with a new print and online marketing campaign targeted at young adults and teens." Let's hope it's better than what we've seen so far.
Price is one of the sole detriments to PSP's performance. With a lower price, Sebastian notes, the system should sell much better: "We note that a Wal-Mart promotion on Black Friday last year generated significant sales volume for the PSP at a discounted price of $169, providing one indication of potential consumer demand. We also believe the potential release of Gran Turismo for the PSP in 2007 could further boost unit sales." Wait? Did he mention Gran Turismo? Isn't that game canceled? Or maybe it's not. Let's hope that he knows something we don't.
The battle's far from over, the analyst reminds us. "It is too early to conclude whether Sony's pricing action will cause game developers to increase the pipeline of new PSP titles." Certainly, the price drop is encouraging, but "at the new $169 price, we note that the PSP is still $40 higher than Nintendo's DS."[Via GameDaily]