Analyst: Blame Sony Japan for PSP slump

by Randy Nelson { Aug 28th 2008 at 10:30PM }

Das Gamer has posted a thought-provoking piece on the current (gloomy) state of PSP outside of Japan, where game releases on the platform can be heard grinding slowly to a halt. The site spoke with games industry analyst extraordinaire Michael Pachter, of Wedbush Morgan, for his thoughts on the root cause(s) of the situation.

Pachter says that the platform's troubles began early on. "PSP struggled to have marquee titles at the beginning, and it's costing it in the long run." The recently announced "PSP Brite" will do little to help things, in his opinion. "Constant tech tweaks and upgrades might work for telephones, but they're not what gamers want," he said, adding "It creates confusion, and leaves many users with older models feeling inadequate."

The real problem according to Pachter, however, is general mismanagement of the platform out of Sony Japan, who he says is, "Instructing the US to play catch-up with Microsoft on Xbox Live, step up its online game with Home, offer movie downloads and push the Blu-ray home theater initiative just to begin with. Something had to give. The company has been spreading itself too thin." That "something," according to Pachter, is the PSP. It's a great piece of hardware, sure, but without key software titles – the lack of which at E3, apart from Resistance: Retribution, was staggering – it will continue to run on fumes. But for how long?

[Via PSP Fanboy]

Tags: michael-pachter, psp-brite, sony

Reader Comments (Page 1 of 2)

Grant @ Aug 28th 2008 10:37PM

I just blame the japanese for all my problems!
tentacle porn and school girl panty vending machines must be the source somehow.

pal @ Aug 28th 2008 10:51PM

"Constant tech tweaks and upgrades might work for telephones, but they're not what gamers want," he said, adding "It creates confusion, and leaves many users with older models feeling inadequate."

Yeah, I never feel left behind when a new phone comes out. NEVER.

Sora @ Aug 28th 2008 10:55PM

I think he should have compared it to the iPod and that same feeling of inadequacy. Every time I buy a new iPod, another one comes out in a matter of months >.>

chispito @ Aug 28th 2008 10:54PM

As a DS fan I actually really like the PSP, but there just haven't been many titles that tempted me. Maybe Patapon and Loco Roco and a few others in passing, as well as the multiplatform titles I bought on DS, like Puzzle Quest and now N+.

The DS, on the other hand, has awesome games every way you look.

required @ Aug 29th 2008 12:42AM

metacritic proves both systems have a superabundance of great games:

http://www.metacritic.com/games/psp/scores/

http://www.metacritic.com/games/ds/scores/

it also shows both systems have roughly an equal amount of games (view by alphabetical order)

required @ Aug 29th 2008 1:09AM

In fact the PSP still has more critically acclaimed (rated 75+) games than the DS has. Also the PSP has a bunch of free flash based games http://www.psponme.com/list_psp.asp?cat=Arcade and a bunch of PS1 and other games from the playstation store. So in many ways the PSP does IN FACT have both the MOST GAMES and the BEST GAMES. End of story.

Taco_Hell @ Aug 29th 2008 2:03AM

I am sorry, but I have to say I always find myself playing my DS more. As much as I like my PSP, there are really few games that grab my attention (I have 8 PSP games, one of which is a port from a PS2 game, and my DS collection is more that twice that.) Also, about the metacritic list, it seems they also listed a few movies as games as well since Advent Children is one of the top ones which means you have to subtract some from your list. Oh, and playing PSOne games on the PSP is like playing with one arm chopped off due to the horrible transition of control schemes. But again, that's just my opinion, I'm sure there are others who'll say they find the PSP more fun that the DS.

ExTester @ Aug 29th 2008 3:18AM

@required

Dude, quite sucking Sony off. I own a PSP and am getting rid of all my PSP stuff just because of this BS. Last game that I played and enjoyed was War Hammer 40k & God of War. There's hardly any decent games coming out of the same caliber on a regular basis. Its extremely clear that Sony has dropped the ball on the PSP many years ago.

Where the hell is the keyboard that takes over 2 years to make and at least 1 year to deliver on.. make that even more cause I am still waiting for it to be released. I see the PS3 got a craptastic keyboard, yet the PSP community has been waiting for years for it.. and hell the only way to get one to work is by modding it.

As the PSP is an example of how to shit on a perfectly great platform that had excellent hardware. Rest assured, I won't be getting another Sony portable gaming system, and they completely shit over their first attempt.

Sheppy (of the Fidlious Clan of Wong) @ Aug 29th 2008 8:55AM

ExTester, better watch it with a statement like that. Otherwise you're not buying another Nintendo handheld either. Because Gameboy, FACT, was complete shit until Game Gear entered the fray. When Nintendo rules unopposed, gamers suffer for it. And if you're saying that Sony's first shot at a handheld completely sucked and that means you'll never give them another shot, then hell... that means the only handheld system for you is the Neo Geo Pocket Color. I have one, I'm quite happy with it.

Nathan-DTS @ Aug 29th 2008 7:20PM

Yeah, yeah I see what you meen with erm... erm... Super Mario 64 erm.... and New Super Mario Brothers oh yeah and Zelda: Phantom Hourglass.

I'm not trying to start a fanboy war but the DS has the same or even less good games compared to the PSP.

The PSP has a lack of 3rd Part support (but whatever 3rd Party Games they do get aren't half bad) were as the DS has loads of 3rd Party Devolpment but it's all shovelware and I meen ALL.

On a side note I hate Pachter; he states EVERY MONTH that the Xbox 360 will win in a landslide in the monthly sales and the entirety of this year he has been wrong. I have one theory on why he does this................... he's a SONY hater

Atr-Slzr-Ctr @ Aug 28th 2008 10:54PM

"Constant tech tweaks and upgrades might work for telephones, but they're not what gamers want,"

In what could it be my first completely serious post here, I say that I whole heartly agree with that statement.

required @ Aug 29th 2008 12:45AM

I beg to differ as the majority of "tweaks" have been welcomed and FREE. For example, when I bought my PSP it did not have a web browser.

Levi @ Aug 29th 2008 3:56AM

But are you getting a PSP Brite for free, required? I think not. That's the tweak that Pachter is referring to.

But you are correct. The constant firmware updates that Sony makes to the PSP are great and show some commitment to improving the system in a cost effective way to the consumer.

LaughingTarget @ Aug 29th 2008 8:00AM

He's talking about the first revision with the extra memory. I can't use Skype because it wont work on my PSP as it is revision 1. That is a load is shit that Sony would pull something like that. I'm just lucky there aren't any games requiring the new model.

JCD @ Aug 29th 2008 10:46AM

To be fair, many of those 'upgraded firmware features' were things that were promised when the system was in development (like the ability to play psone games).

why not the LS2LS7? @ Aug 28th 2008 10:57PM

Is this the same PSP that has sold like gangbusters in Japan for over a month? Outselling the DS? I wouldn't write it off yet (even though I never use mine).

And the idea that people don't like improved devices is ridiculous. The idea of improving them is to remain competitive in the eyes of potential new customers. You want to get those who haven't bought yet to get one.

If you look at the "half empty" view and say that what you bought is now no good, even though it still does everything it did the day you decided to pay money for it, then you have a problem of your own you need to get over.

My 360 doesn't have HDMI. I could really use HDMI because my amp is out of component inputs. But whose fault is that? Should I blame MS for coming out with a 360 with HDMI later? No. Even if they hadn't done so, my 360 would STILL not have HDMI.

Fernando Rocker @ Aug 28th 2008 11:14PM

Well... last two weeks the DS outsold the PSP in Japan again, and this week will be the same.

And this is going to happen all this year, with all the big DS games coming in the next couple of months: Chrono Trigger, Dragon Quest IX, Disagea DS, Kingdom Hearts DS, Tales of Hearts.

Just look the latest Japanese sales. DS outsold the PSP last two weeks by a large margin, and according to Famitsu numbers, this week the DS also outsold the PSP.

why not the LS2LS7? @ Aug 29th 2008 1:05AM

If being outsold by the DS meant you were a failure, then every gaming device except the Wii is a failure.

I'm not saying the PSP will outsell the DS when all is told. That'd be a very tall order. But I think that it outselling the DS for a month shows it has some life in it.

BigD145 @ Aug 28th 2008 11:01PM

Doesn't this speak badly for US game studios? Are we mostly reliant on Japan? Yes. Yes we are.

Ninjakamster (PS360 FTW!) @ Aug 28th 2008 11:08PM

Just keep releasing Monster Hunter games and expansions and side stories on the PSP and it will beat the DS in Japan again.

Now that Monster Hunter is coming to the Wii, why not the DS? I can't imagine the sales it will get then!

Superstar90 @ Aug 28th 2008 11:23PM

OMG. Could you imagine the chaos if someone made a Capcom vs Square Enix game for the DS?

WOW!

Actually, that would be pretty wicked, even though Capcom characters would kick the asses of Vaan and company.

Gun Barrier (Gamer Tag) @ Aug 28th 2008 11:09PM

I might get one one day, as a portable homebrew device.

But The price is still too high for me.

Maverick Saturn @ Aug 28th 2008 11:11PM

All the best Psp games come from Japan.

Xoviet chiK @ Aug 29th 2008 5:05AM

I had to peer over my PSP collection for a moment, and 90% of my PSP games are Japanese developed. Odd...

Daxter though, it's the cat's meow!

John Z @ Aug 29th 2008 7:36AM

Hell, two of my favorite games on the machine are imports! (Fate/Tiger Colosseum and Parodius Collection) I think I own maybe two US-developed games for it (and of those, Sega Genesis Collection doesn't even really count).

One thing to keep in mind is the masochism tango Sony pulls with the constant, incessant firmware updates. Every time the firmware changes it can cause major headaches for developers-- sure, it hasn't broken anything yet, but that doesn't mean a new firmware version coming out mid-dev cycle can't introduce some catastrophic bug that forces a delay. If I had to make a guess, I'd say that's what's really making developers so shy about working on the machine.

That said there's still a hell of a lot of good software on it (Brave Story, Crisis Core, Gradius Collection, the stuff I mentioned above). And if you find someone who can help you homebrew-enable your machine it gets even better.

agathos @ Aug 28th 2008 11:15PM

There're like dozen and dozens and dozens of outstanding PSP games that reviewed on average 8+ to 9+ that you can buy used now for like $10-20, it's got an outstanding library. Even though it hasn't sold up there with the DS it's definitely been a successful venture for Sony and provided my with hours on hours of entertainment.

Ayrkain @ Aug 28th 2008 11:32PM

Shhhh... Don't make sense. Joystiq is doing their usual 2 minute hate.

LaughingTarget @ Aug 29th 2008 4:08PM

To be fair, Metacritic doesn't mean dick in the handheld arena. The typical game reviewer treats a PSP game from the standpoint of a full console game. What they don't take into account is how fun is any given game in 20 minute bursts. Games like Patapon deserve the high scores they get because you can fight a battle in 5 minutes. Games like Daxter or full-on RPGs like Brave Story, while fun in their own right, are horrid handheld games.

Basically, a good chunk of highly rated PSP games need to be docked 20 points for failing to be designed for the handheld environment. The fact the PSP is being treated as a gaming device you sit on your couch and play for 4 hours at a time is why the software isn't doing so hot. As it may be a shock to many here using the Metacritic route, your typical consumer doesn't want to make a handheld a primary gaming component because it sucks to stare at the tiny screen for long lengths of time.

MikeO. @ Aug 28th 2008 11:21PM

I'm someone who's consoles went something like this Intellivision > NES > PS1 > PS2 > 360 so I'm no stranger to Sony.

The only reason I got a 360 over PS3 was the early launch and a select few exclusives.

I always promised myself I'd buy a PSP, and as slick and fancy as it is, there's always been something holding me back.

I know it has great games (some at least) and I love the way the system itself operates, but I've just never been able to bring myself to terms with dropping $150 on it.

Perhaps it's being in my mid 20's but it's appeal quickly fell away from me. Maybe I'll eventually pick one up on the cheap from someone who wants to ditch theirs.

Superstar90 @ Aug 28th 2008 11:21PM

The DS needed an upgrade because it was butt ugly, and would not be selling as high as it is now if the fat DS was still around. I am so glad that I have a DSLite and I don't regret upgrading.

The PSP didn't really need an upgrade, because now it's just lighter and thinner. It already looked good, but Sony have somehow managed to upgrade it twice. Both times adding something that wasn't really needed, but is very nice. The added memory makes games load faster, and the brighter glare-resistant screens make it easier to see. But seriously, I have a feeling deepdown (and many others too) that my PSP1k is dated last-gen stuff, even though 90% of me knows that the 2k and 3k are not worth rebuying it.

And for god sakes, no developers should use the PSP's built in mic for gameplay. No shitty "BLOW INTO THE MIC!" or "SCREAM INTO THE MIC". Sometimes it's just terrible when your on the train and Eddo (from Zelda: PH) tells you to shout into the DS if you want to buy the Salvage Arm. Awful... just awful.

Audacious @ Aug 28th 2008 11:31PM

PSP is great hardware but they are not pumping out the software. Yeah I prefer quality over quality but its starting to be like the wii collecting dust.

Audacious @ Aug 28th 2008 11:33PM

over quality

Audacious @ Aug 28th 2008 11:34PM

quantity over quality. That should be it plus go Giants!

j.howlett @ Aug 29th 2008 8:09AM

still not sure if you got it right

Nightvortez @ Aug 28th 2008 11:47PM

How is the fact that there is limited software not completely obvious? Look at the software sales, they've actually went down by quite a bit since the PSP launched, and even more once stuff like custom firmware hit, hell, the best selling game on the system was at one point the sole way of hacking it, there are millions of iso downloads for it on isohunt every week yet the software sales themselves are pretty minimal. It's having the same effect as the Dreamcast, the system is just too easy to pirate, all that's really required is a quick custom firmware install and you can load up ISO's from the memory stick which actually run better than the disc you'd buy in the store. So why should software developers support it if their games won't sell? The only real solution I see for Sony is to release a predecessor, no matter how many games come out and how great they are, they'll never get huge sales outside of Japan now.

Nightvortez @ Aug 28th 2008 11:54PM

successor*

Don't know what I was thinking there.

BigD145 @ Aug 29th 2008 12:07AM

One of the big kicks for pirating has been PS1 games. You know the PS1, don't you? It's that console that came about before Dreamcast. That set of games Sony wouldn't let you make into iso's if you had original discs. That set of games you'd be forced to rebuy or refirmware your PSP to use the copy you owned.

JRM @ Aug 29th 2008 12:15AM

you mean, release a SUCCESSOR. a predecessor would be releasing a Sega GameGear.

Whatever the case, we all saw this was going to happen years ago. It wasn't just the homebrew that hindered the PSP, it was also the UMDs, The never-ending ports, the GTAs that got ported to the PS2 for half the price, and the single analog nub--probably its most fundamental design flaw.

The PSP is a great little computer, but as a standalone gaming system both consumers and developers felt too many limitations with it. And of course as PMPs got more sophisticated and cheaper, the PSP lost more of its non-gaming market.

A brighter screen is not going to do anything for it, neither did a "slim" redesign. They'd have to make a brand new GAMING-ORIENTED system from scratch, and I don't know if they're going to invest in another one when they end #3 at the end of this gen, and after they've lost so much money on the PS3.

HighFiveJesus @ Aug 28th 2008 11:57PM

there's about 14 psp games i would have in my library and i really want to get but i keep getting close to buying one, and they release an updated version, so then i get scared and keep waiting.

Charlie_Six @ Aug 29th 2008 12:21AM

Doesn't Tokyo have wi-fi spread across the whole city? I think that could be a big reason why the PSP has done well in Japan, but not nearly as well in the US. You could surf the web anywhere with a PSP in Tokyo, then.

Josh @ Aug 29th 2008 12:46AM

I've been waiting for Sony to give me a reason to buy a PSP, but it's just not there.

I really would like to own the machine -- it's so slick-looking and all -- but the games just aren't there in any kind of respectable quantity, especially after 3 2/3 years.

Mark @ Aug 29th 2008 1:03AM

I really liked this article from nearly a month ago; it basically said the same things:

http://tech-gaming.com/2008/08/08/sos-psp-save-our-system.aspx

jchensor @ Aug 29th 2008 1:54AM

The PSP is just not a good portable system. It's a great piece of hardware, but is has no unique function to fill. It's like a machine that is half portable and half console. But it's not a good portable device, and it's not a good console!

As a portable device, it's got load times, which is horrible for a portable system. It's not as convenient to carry around (by contrast, the DS is small, fits in your pocket and the screen is protected from keys, and the games are really portable). And the battery life is shameful. I took my PSP on the plane from Los Angeles to Hawaii -- a five hour flight -- and it would NOT last me the entire trip there (with the default battery)! Meanwhile, on a flight from Los Angeles to New York (also 5 hours), I played the DS nonstop all the way there AND back without charging it ONCE.

As a console, as beautiful as the screen is and as powerful as the system is, it just doesn't compete with consoles. Lumines is wonderful on the PSP, but Lumines is MORE wonderful on the XBox Live Arcade one my giant TV playing on my couch. There just isn't a game that can be made that wouldn't be better on another system (unlike the DS, which has games that cannot exist on other systems).

Right now, the PSP's biggest problem is that it's stuck in this limbo of uselessness. I'm not saying it's a bad system -- there are TONS of good games for it and it is a VERY powerful piece of hardware -- but it just doesn't fill in an area of gaming that can't be better accomplished by another system.

Virtuous @ Aug 29th 2008 2:02AM

The brighter screen and microphone of the PSP 3000 are laughable. These "improvements" should have been incorporated in the PSP 2000.

jimmygotsmack @ Aug 29th 2008 8:13AM

I thought, if anything, it would be because of how easy it is for the psp to run "homebrew software", and how easy it is to download "homebrew software".

Robot Kitten Face @ Aug 29th 2008 8:39AM

I'm bored to death with both my PSP and DS. I haven't even bothered recharging either of them in the last 3 months. I hate to say it, but the iPhone is where it's at right now. Affordable, smaller, downloadable titles are the future of gaming. That's why Xbox Live is such a success.

mj @ Aug 29th 2008 8:43AM

This is another sign that Sony isn't out of the woods yet:
1. PS3 not BC anymore
2. PSP not getting attention
3. ps2 losing steam

Despite strong sales, Sony is actually in a retreat, still scraping together money to make a profit. PS3 games are still not coming out easily, even from Sony. Insomniac is practically the only publisher of note. The PSP's movie strategy is a disaster and hasn't been fixed. And now that the ps2 is winding down (I don't see any stand-alone games advertised now) Sony is in a rough spot. Good thing MS screwed up the 360.