SCEE: PSP Go takes advantage of early adopter 'premium'
Michael Pachter retracted one of the most correct statements he's ever made: the PSP Go is a "rip off" for consumers. The PSP Go takes away the expensive-to-manufacture UMD drive and replaces it with cheap flash memory -- and yet it still costs more than the current PSP-3000. Fun fact: You can buy a standard PSP and 16GB Memory Stick Duo Pro right now for less than a PSP Go.
Sure, the new form factor looks nice, but Sony should have no manufacturing costs to pass down to the consumer. MCV asked SCEE's Andrew House if R&D or retailer markups were the reason behind PSP Go's high price. "Those aren't the factors," House admitted. "When you introduce a new piece of hardware you have the opportunity to say there is a certain premium that is associated with it, and we took that into account."
Essentially, House is admitting you can charge more for technology when it's new. It's unsurprising, but it certainly leaves a bad taste knowing Sony can easily charge less for the PSP Go. Perhaps Sony will follow the iPhone's footsteps and suddenly drop the price of the PSP weeks after early adopters pay their "premium" price.
Sure, the new form factor looks nice, but Sony should have no manufacturing costs to pass down to the consumer. MCV asked SCEE's Andrew House if R&D or retailer markups were the reason behind PSP Go's high price. "Those aren't the factors," House admitted. "When you introduce a new piece of hardware you have the opportunity to say there is a certain premium that is associated with it, and we took that into account."
Essentially, House is admitting you can charge more for technology when it's new. It's unsurprising, but it certainly leaves a bad taste knowing Sony can easily charge less for the PSP Go. Perhaps Sony will follow the iPhone's footsteps and suddenly drop the price of the PSP weeks after early adopters pay their "premium" price.













Reader Comments (Page 1 of 2)
sony boy @ Jun 25th 2009 1:34PM
just wait for the nerdy and geeky people to buy it for the first month and then sony should say they realized how much a rip off a psp go is and is going to drop it by 40 to 50 bucks.
that's their evil plan.
whylekat @ Jun 25th 2009 3:01PM
$40-50 would still make it MORE expensive then the PSP is now.
What a frigging rip-off. Anyone who buys this doesn't know the value of money or has too much of it and just doesn't care
sony boy @ Jun 25th 2009 3:20PM
it has 16gb of memory, so not really.
sk8monroe81 (PSN--XBL) @ Jun 25th 2009 3:50PM
sony boy- yeah if it didnt have the 16gb on board, the product would be worthless to most consumers, given the loss of the UMD drive.
making it mandatory to buy a sony memory stick to play a game would have a bad taste in consumers mouths.
and the point of the article i think was that sony has lowered the manufacturing costs of their PSP type gaming platforms now and could easily pass the savings onto the consumer ( especially in bad economic times) ( especially when sony numbers are down) & (especially when the DS controls the majority of the handheld market) which would probably help increase market share and show good faith.
AlterEgo @ Jun 25th 2009 1:34PM
Like Joystiq said, iPhone did it.
copa @ Jun 25th 2009 1:45PM
The difference is that people lined outside for miles to purchase an iPhone with the premium built in, and it is still considered the premium device in its class.
Sony's decision to charge $600 for the PS3, and "take advantage of the premium" for the first year, is a major reason why they have been the third place console for the last three years.
supakoopa @ Jun 25th 2009 1:51PM
Its actually different with the iPhone, AT&T actually pays for some of the iPhone 3G and the iPhone 3GS as long as you agree to a two year plan. Thats the only reason the first iPhone costs so much more.
Don't talk shit about things you don't know, thanks!
NaeemTHM @ Jun 25th 2009 2:07PM
AlterEgo, the reason why the iPhone cost so much on launch is because it wasn't subsidized by AT&T. Just about any smartphone you purchase without a contract cost $500-600 dollars. Heck Ericsson makes a phone for 900 bucks.
That's why the 3G was dirt cheap when it rolled around. People have the wrong idea thinking that apple was just trying to fuck us.
Edicius @ Jun 25th 2009 2:12PM
Yeah, but I bet Sony won't offer $100.00 back to early adopters like Apple did.
Alistair Azimuth PSN: johnnynumber5 @ Jun 25th 2009 2:12PM
Supakoopa
that's partially right and wrong. The original iPhone wasn't subsidized with a plan
and actually was $599 & $499 for the 8 & 4 gb versions. I know because I bought
two of them at launch. Then, a few months after launch they slashed the price by $200 and the early adopters were up in arms. As damage control they gave early adopters a $100 apple gift card to make an amends. So, don't talk out of your ass without having your facts straight and talk down to people. Douche.
Copa
no one has to buy the GO. If the price is an issue they can buy a 3000 with a large memory card. Expect a price drop this holiday season. The PS3 is different because they still lost money when priced at $599 so it's not an apt comparison.
Alistair Azimuth PSN: johnnynumber5 @ Jun 25th 2009 2:21PM
Edicius
Sony won't drop the price by 33% 2 months after launch either. Not an apt comparison to make at all. The Go is less than half the original cost of the iPhone and a relevant comparison isn't 100 refund.
Kinsey @ Jun 25th 2009 1:35PM
If you think the iPhone was expensive in the US on release. You should have sen the price when it was released in Canada. Gotta love our Canadian money grubbing celphone companies.
Girugamuk (Moptimus Slimed) @ Jun 25th 2009 2:18PM
" Gotta love our Canadian money..."
theres your real problem
CTC XBL-supapaypamawio PSN-ctclaw @ Jun 25th 2009 5:29PM
No...here's your real problem...
"Canada"
;)
Ryoga Vee @ Jun 25th 2009 1:35PM
PSP-3000 is great.
PSP-Go is 2000 and late!
Nuf Said!
~ Ryoga Vee
Kill a mans jiro @ Jun 25th 2009 1:43PM
U dont like U dont buy....
Nuff said.
Vidikron @ Jun 25th 2009 1:44PM
That's the second time today you've posted this today and I'm still not sure exactly what it means.
InFaMoUs1- @ Jun 25th 2009 1:45PM
just stfu and gtfo you said the same thing in another blog post and it's really lame and by the way we dont need to see you name twice in one comment as it's already above the comment you posted.
InFaMoUs1- @ Jun 25th 2009 1:48PM
it's from a really lame pop song. obviously he's some little kid I guess and now he thinks he's "in with thew crowd" by writing that twice now. Well Ryoga Vee you look more like an ass imo
sony boy @ Jun 25th 2009 1:52PM
hey!!! boom boom pow is not lame. it's getting old, tho.
yeah, and this isn't creative.
Ryoga Vee @ Jun 25th 2009 1:53PM
Well spoken from the douchebag that "TyPeS ThEiR UsErNaMe LiKe ThIs!!!11"
Crazy-008 @ Jun 25th 2009 1:54PM
Boom. Roasted
ArchiGamer @ Jun 25th 2009 1:57PM
?
InFaMoUs1- @ Jun 25th 2009 2:01PM
Yep I'm the Douche Bag... mhm just because my name is spelled all funny what is it to hard for your to read or something?
Lionbacker steamID: detfan1957 @ Jun 25th 2009 2:06PM
TBH, I did genuinely laugh when I saw his post.
Hashbrown Hunter (OneGiantCluster.blogspot.com) @ Jun 26th 2009 6:47AM
'Ryoga Vee' is making fun of the Black Eyed Peas song "Boom Boom Pow".
There's a line by Fergie where she says, "I'm so 3000 and 8/You so 2000 and late"
Preston @ Jun 25th 2009 1:36PM
Turns out "early adopter" is a codeword for "sucker"? Who knew! :)
DangerMouse @ Jun 25th 2009 1:38PM
Hahaha, SCEE strikes AGAIN!!!
We all know why they do it. Admitting it just makes themselves look ridiculous.
Crazy-008 @ Jun 25th 2009 1:39PM
Sony is trying to recoup costs on its ps3 which is causing them to hemorage money with every sale.
Eric E @ Jun 25th 2009 1:40PM
Anyone else thinks this is a test layout. PSP2 will look the same if all goes well but their will be a 2nd analog stick where Select/Start is and they'll move.
Then they'll add accelerometer/touchscreen/forcefeedback? maybe add more GB and better graphics (maybe Wireless N, new bluetooth, USB 3.0?)
Announce next year for devs to get to work.
Cody @ Jun 25th 2009 1:52PM
And then you woke up from your dream.
HAAS599 @ Jun 25th 2009 1:58PM
I think so. the new connector for the accessories will be the new standard for all psp's to come. I dont think youll see wireless N, but maybe 802.11g. sixaxis technology is a no brainer and force feedback would be pretty sweet, as long as they can keep the battery at 4-5 hours or longer.
rells009 @ Jun 25th 2009 3:25PM
This is my sentiment exactly.
Dakar @ Jun 25th 2009 1:42PM
I think Sony's main goal behind the PSP Go's steep initial price is more to offset PS3 hardware losses than inflict an early adopter fee on their consumers.
Maverick Saturn @ Jun 25th 2009 1:40PM
I do find it too expensive, but I also understand the business logic of having it more expensive then the 3000 model, considering the 3000 model is older, people will be less likely to buy a 3000 knowing the Go is the same price, which means existing stock will pretty much go to the dogs plus they wouldn't be able to support the 3000 as it would be rather pointless, what I don't understand is why it is SO expensive. £30 maybe £40 more, but a whole £100? Thats madness!
acefondu @ Jun 25th 2009 1:46PM
I guess I have too....Madness? This is SONY!!!
deanb @ Jun 25th 2009 2:58PM
It's £45 more. you got your $-£ conversion the wrong way round.
Though that is still a bit more, but the DSi is like £50 more too and all that does is add 2 realy crappy cameras n takes out the GBA/accessory compatibility.
So Ninty n Sony are as bad as each other in that respect.
BPMOmega [GT,Steam] @ Jun 25th 2009 1:41PM
Yep, and I'll just wait for the "premium" to go away... or just not get it at all. Plenty happy with my 2K.
Nate Addison @ Jun 25th 2009 1:43PM
IMO I think that Sony is charging this "premium" price to offset the losses from the PS3 a little bit. Once all the commotion of PSP GO! fades away, it will drop in price to where it should have been originally. Then roughly 6-9 months later, after the data can be analyzed, buzz about PSP2 will re-surface and Sony will make the final decision as to "UMD or not to UMD" in the future. OFF TOPIC: I like UMD-less, I don't like PSP game cases and all that bulk....I mean put a screen and a massive battery on your PS3 and it would be just as portable as the PSP. I feel the idea of portable gaming is to have as much fun as possible with as few interchangable parts and components and protective devices as possible. To me the idea of hitting the "home" button, leaving the game, find a new game to play and pressing "X" to be much more appealing. *END RANT*
PeterF @ Jun 25th 2009 5:43PM
Then you will love a modded PSP!
Kill a mans jiro @ Jun 25th 2009 1:43PM
Here we go again Joystiq, i feel you guys are purposly trying to start arguments, this post will only atract trolls & Flamers......
This is N4G all over again......
DangerMouse @ Jun 25th 2009 2:09PM
It also attracts posters to point out that article will attract trolls and flamers.
Crazy-008 @ Jun 25th 2009 2:10PM
So did you ever find the answer to your question about the psp already having built in GPS? or are you still wearing your dumbass hat?
Ordeith @ Jun 25th 2009 3:43PM
Yet I didn't notice Joystiq post anything about Activision threatening to drop all support for the PS3 by 2010. That would have fanned the flames quite well.
The story did appear on engaget.
Duke @ Jun 25th 2009 4:28PM
Yes they did have that story- http://www.joystiq.com/2009/06/19/kotick-questions-continued-activision-support-of-sony-platforms/
hector88 @ Jun 25th 2009 1:45PM
unfortunately I won't be adopting the PSP Go at all. I have far too many UMDs most of which are import titles which I doubt Sony will allow me to "trade in" for a digital copy (if that is the route they go).
joeybeast @ Jun 25th 2009 1:44PM
Don't be so suprised.
SONY is known for price skimming.
I just can't believe that they admitted it.
Chris D.(PSN: Aggie_CEO | XBL:The Aggie CEO | Steam: Aggie_CEO @ Jun 25th 2009 1:45PM
so wait 6 months and the price will drop?? sounds good to me.
Or hell wait a year or so and get a PSP2.....hmmmmmm decisions decisions....
Hell I just bought 2 16GB Memory Sticks on eBay for like $64!!! I don't have need for a Go! at the moment anyways. Unless they come out and say it has built in GPS or something, fuck it
bigd7387 @ Jun 25th 2009 1:45PM
I've got a 3000 and don't plan to go with the PSPGO anytime soon. I really think now Sony may screwed themselves. There are no advantages to go with the GO vs's any other system, no touch screen, smaller screen, no UMD, no compatible accessories, non-replaceable battery and a higher price tag. Sony may not only have now killed the orginal PSP but with this signal move may have killed their whole portable game division. The PSP is now a Gizmondo.
Dragod @ Jun 25th 2009 1:45PM
Isn't this dangerously similar to the original PS3 sales strategy?
This is going to come back and bite Sony.