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.
Reader Comments (97)
Posted: Jun 25th 2009 1:47PM BorgMorgue said
Sony Pony?
Posted: Jun 25th 2009 1:51PM edgar said
I don't need no damn PSP (no)Go. I already got a slim and am planning to upgrade to a 3000. Plus I just bought a 16GB MS and an extended battery pack (which was sooo worth the money). Sorry, but Sony dropped the ball with this "premium" model.
Posted: Jun 25th 2009 1:57PM (Unverified) said
Cool, I was losing sleep wondering about your past and future psp related purchases.
Reply
Posted: Jun 25th 2009 1:53PM Yojimb0 said
I've heard that the iPhone 3GS has a much more severe early adopter premium... they're charging 600 dollars for a product that costs them 148 to make... People aren't bitching nearly as much about that.
Posted: Jun 25th 2009 1:54PM (Unverified) said
All this talk about the Go is pointless. It's a ripoff, nuff said.
Posted: Jun 25th 2009 2:04PM (Unverified) said
It's a vicious cycle that began before your post... scroll up. We must put an end to this.
Reply
Posted: Jun 25th 2009 1:57PM (Unverified) said
Hey, with the PSP Go 16GB flash memory and an expandable memory slot, you can have 32GB (or more?? of memory altogether
Posted: Jun 25th 2009 1:59PM (Unverified) said
Cool?
Posted: Jun 25th 2009 2:00PM billysea said
Sony might earn a little bit more from the get go, but they ruin their chance of putting the PSP back into the competition.
Why haven't they learn from the PS3?
Why haven't they learn from the PS3?
Posted: Jun 25th 2009 2:01PM (Unverified) said
Sounds like almost everyone here including Andrew, the author of this post, needs to take a lesson in economics. There are MANY more factors that go into pricing than just manufacturing costs and early adopters.
Posted: Jun 25th 2009 2:09PM spin cycle said
A large portion of the price increase goes to the retailers. Retailers have about 1-2% margin on consoles (including the PSP) because they expect to sell you games with it and make money. Since they do not sell games for the Go, they need their usual 30% margin or so or they won't carry it.
Posted: Jun 25th 2009 2:13PM Hoffer said
I was excited for the PSP Go when the Qore thing was leaked. I quickly lost interest when I saw that price. If it was $170 or even $200, I would have picked up up. I just felt I was getting robbed at $250. I doubt I'll ever pick one up now.
Posted: Jun 25th 2009 2:17PM zero2dash said
Even better you can load CFW on the old models. One more reason I wouldn't buy a 3k or Go. Actually I'm not buying any more because my 2000 white Darth Vader one has had "bubbles" on the screen TWICE now (best way I can describe it...not dead pixels, but discolored "bubbles"). I sent it in under warranty, got another one. Now that one has the same problem (and of course is out of warranty).
Sony is an epic fail at making reliable hardware.
PSX read errors, Ps2 read errors (DVD and regular), PSP UMD disc ejecting/broken pixels...the Ps3 I have is the first Sony console I've bought that hasn't had issues (yet).
Sony is an epic fail at making reliable hardware.
PSX read errors, Ps2 read errors (DVD and regular), PSP UMD disc ejecting/broken pixels...the Ps3 I have is the first Sony console I've bought that hasn't had issues (yet).
Posted: Jun 25th 2009 2:18PM StormEagle said
Scribblenauts for the win? Anyone?
Posted: Jun 25th 2009 2:39PM Matrixxxx said
Is there a way to read the comments in time order? Yes I know about downvoting but its a pain in the neck to read comments that are rebutts to earlier comments that are now way down the list of messages. Also does downvoting also make the persons post more invisible?
Posted: Jun 25th 2009 2:43PM Mr Khan said
The European branch seems more willing to embrace the idea that paying more is better for a quality product, between this and the "This is Living" PS3 campaign. Not like the other branches of Sony which tried to make PS3 appear like a gift they were giving to the consumer through their own grace
It's refreshing, but not very wise on SCEE's part
It's refreshing, but not very wise on SCEE's part
Posted: Jun 25th 2009 2:44PM ColorblindMonk said
The giant enemy crab approaches, people! Avoid the PSP go! for massive damage!
Posted: Jun 25th 2009 2:49PM (Unverified) said
Europeans getting ripped off?
No!
Surely not!
It's great when people find out and are disgusted, because our electronics prices are blatantly fixed. I just import my hardware (and sometimes software and blu-rays), hence, taking advantage of the way the exchange rate was, I paid the same for my PS3 as most of my friends and myself paid for my Wii (which is the Euro version). This is unfortunately normal.
No!
Surely not!
It's great when people find out and are disgusted, because our electronics prices are blatantly fixed. I just import my hardware (and sometimes software and blu-rays), hence, taking advantage of the way the exchange rate was, I paid the same for my PS3 as most of my friends and myself paid for my Wii (which is the Euro version). This is unfortunately normal.
Posted: Jun 25th 2009 2:51PM Roto13 said
Typical arrogant Sony. I just bought a PSP 3000 with a 4 gig memory stick duo (which isn't a stick at all and I don't know why it's called that) and Rock Band Unplugged for $50 less than the price of a Go.
The sad thing is that there will probably be a bunch of people who don't realize that the Go is such a shitty value.
The sad thing is that there will probably be a bunch of people who don't realize that the Go is such a shitty value.
Posted: Jun 25th 2009 2:55PM (Unverified) said
"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."
cool story, brah
http://www.spooncraft.com/wp-content/uploads/cool-story-bro.jpg
http://i275.photobucket.com/albums/jj300/Zhusuke/CoolStoryBro.jpg
http://i135.photobucket.com/albums/q148/ugotmercd/Cool_story_bro_inc.jpg
cool story, brah
http://www.spooncraft.com/wp-content/uploads/cool-story-bro.jpg
http://i275.photobucket.com/albums/jj300/Zhusuke/CoolStoryBro.jpg
http://i135.photobucket.com/albums/q148/ugotmercd/Cool_story_bro_inc.jpg
Posted: Jun 25th 2009 3:17PM tkashur said
"Perhaps Sony will follow the iPhone's footsteps and suddenly drop the price of the PSP weeks after early adopters pay their "premium" price." Thats what I'm waiting for! If it came with EVERYTHING in the picture, then it would be worth it. I figure by now it at least should come with that AV cable, does it come with a movie and game like psp's now? When the 1000 came out it had Spiderman 2...it will be the worst deal offered if it comes with NOTHING!
My only concern is that UMD trade in program. If it happens, will it only be applicable to early adopters? That might be the only thing that rangles me in, but like I said, IF it happens.
My only concern is that UMD trade in program. If it happens, will it only be applicable to early adopters? That might be the only thing that rangles me in, but like I said, IF it happens.
Posted: Jun 25th 2009 3:22PM (Unverified) said
I didn't see people complaining when Sony was losing $200-300 on each PS3 sold.
Posted: Jun 25th 2009 3:53PM (Unverified) said
did you really expect sony to sell the ps3 for $ 900.00 ?
that maybe would have been the biggest console failure in history if they tried that one...
why would a consumer complain about getting a deal?
now we all should complain about getting ripped off....
Reply
that maybe would have been the biggest console failure in history if they tried that one...
why would a consumer complain about getting a deal?
now we all should complain about getting ripped off....
Posted: Jun 25th 2009 3:55PM HappyFunBall said
The problem with their "early adopter" theory, is that this really isn't new hardware. It's a rehash of a PSP, with the removal of components (UMD drive), and the addition of cheap flash memory.
Posted: Jun 25th 2009 4:23PM Nugent said
"Sure, the new form factor looks nice, but Sony should have no manufacturing costs to pass down to the consumer."
This isn't necessarily true. If they had to shrink the size of any of the components to fit the new form factor, that would certainly increase manufacturing costs. Designing a new, smaller chip can be expensive.
That said, we don't actually know if the components had to be modified. I wouldn't be surprised if the extra cost really is just a premium for early adopters.
This isn't necessarily true. If they had to shrink the size of any of the components to fit the new form factor, that would certainly increase manufacturing costs. Designing a new, smaller chip can be expensive.
That said, we don't actually know if the components had to be modified. I wouldn't be surprised if the extra cost really is just a premium for early adopters.
Posted: Jun 25th 2009 4:37PM butaneko said
Saying something is a "rip off" has kind of a, "this is something everyone will or must buy, the company selling it knows it and is gouging people as part of a shameless cash grab" feel to me. Kind of like $9 beers at the stadium or $85/month for iPhone service.
I guess there probably are people who see PSP Go as a must buy and therefore a rip off, but I'm not really one of them. My PSP Original hasn't left my drawer in 3 years and there hasn't really been a killer app that has made me want to pull it out, much less upgrade.
I guess there probably are people who see PSP Go as a must buy and therefore a rip off, but I'm not really one of them. My PSP Original hasn't left my drawer in 3 years and there hasn't really been a killer app that has made me want to pull it out, much less upgrade.
Posted: Jun 25th 2009 5:39PM (Unverified) said
Dell recently offered a PSP-2000 for $110. I'm pretty sure I could find a 16GB memory stick for about $40. What's the point of a $250 PSP Go again?
Posted: Jun 25th 2009 6:11PM KirbyCommando said
*looks at current suckage of handheld industry* *Thinks about how awesome a xbox portable would be* *sigh*
Posted: Jun 25th 2009 6:28PM wshwe said
PSP Go = FAIL
Posted: Jun 25th 2009 7:08PM (Unverified) said
It may seem expensive but a few months after release it's cost will fall dramatically just like most Sony products.
http://www.pspgoguide.com/
http://www.pspgoguide.com/
Posted: Jun 25th 2009 8:25PM (Unverified) said
Sony made Milo 2
http://1.bp.blogspot.com/_FyCWMy5CArs/R66U2psmPTI/AAAAAAAAADM/7hgxht_5MHE/s320/mylo2ss.jpg
Milo 2 was a huge failure and now is R.I.P
Sony then made PSP GO look like Mylo 2...........
Can anyone guess where this is going?
http://1.bp.blogspot.com/_FyCWMy5CArs/R66U2psmPTI/AAAAAAAAADM/7hgxht_5MHE/s320/mylo2ss.jpg
Milo 2 was a huge failure and now is R.I.P
Sony then made PSP GO look like Mylo 2...........
Can anyone guess where this is going?
Posted: Jun 25th 2009 9:55PM (Unverified) said
The arrogance of Sony never ceases to amaze me. And they are suprised as to why they are losing the current next gen console / handheld wars. In any event, I love my PS3 and PSP-2000 and have never considered side-grading (I don't consider the PSP-Go an upgrade).
But another poster made an interesting comment; namely, it would nice to see Xbox enter into the hand held market. I also would welcome that as I like to see how Nintendo and Sony would compete with MS in the hand held marketplace. I would hope that this would force Nintendo to actually bring some innovation to their devices whereby the graphics don't look like crap and Sony wouldnt try to rip off consumers by the constant repacking of the same device over and over and over again. Hell, for that matter, maybe Sony could actually introduce a real browser instead of the so-called browser currently on it.
But another poster made an interesting comment; namely, it would nice to see Xbox enter into the hand held market. I also would welcome that as I like to see how Nintendo and Sony would compete with MS in the hand held marketplace. I would hope that this would force Nintendo to actually bring some innovation to their devices whereby the graphics don't look like crap and Sony wouldnt try to rip off consumers by the constant repacking of the same device over and over and over again. Hell, for that matter, maybe Sony could actually introduce a real browser instead of the so-called browser currently on it.
Posted: Jun 26th 2009 6:55AM MrHashbrown said
When it comes to the consumers, yeah we are definitely getting ripped off. But from a business perspective? It makes perfect sense.
Remember when the iPhone first launched for a (ridiculous) $600? It was revealed after its launch that it only cost about $250 to make. Apple was making a $350 profit per unit, and they also forced consumers to sign a 2-year contract with AT&T. Now they are one of the only major companies weathering the storm of the current recession. Why? Because they overcharge and their consumers accept that because they are confident in the Apple brand and believe they will get a quality product.
While Sony is definitely a major name brand that is synonymous with consumer electronics, the PSP is no longer a strong brand name. So they will definitely have a harder time selling the Go. But when you take things into perspective (and seeing Sony's currently less-than-stellar business condition) you really cannot blame them.
Yeah it still sucks, but that's the kind of shit you have to swallow once you take Economics class.
Remember when the iPhone first launched for a (ridiculous) $600? It was revealed after its launch that it only cost about $250 to make. Apple was making a $350 profit per unit, and they also forced consumers to sign a 2-year contract with AT&T. Now they are one of the only major companies weathering the storm of the current recession. Why? Because they overcharge and their consumers accept that because they are confident in the Apple brand and believe they will get a quality product.
While Sony is definitely a major name brand that is synonymous with consumer electronics, the PSP is no longer a strong brand name. So they will definitely have a harder time selling the Go. But when you take things into perspective (and seeing Sony's currently less-than-stellar business condition) you really cannot blame them.
Yeah it still sucks, but that's the kind of shit you have to swallow once you take Economics class.
Posted: Jun 26th 2009 12:31PM Chopper731 said
Economics class? I think you mean a class on product marketing.
I find it hilarious that Joystiq and other people are beating up Sony for charging "a lot of money" for a brand new product. This is what electronics companies do.
Reply
I find it hilarious that Joystiq and other people are beating up Sony for charging "a lot of money" for a brand new product. This is what electronics companies do.
Posted: Jun 26th 2009 5:27PM MrHashbrown said
It's even more funny because they are calling foul even though the guy was being truthful. That $600 iPhone was a total ripoff and everyone knew it, but no one got mad.
Here the guy admits they are charging more because their company DESPERATELY NEEDS IT and everyone screams at them for overcharging.
Reply
Here the guy admits they are charging more because their company DESPERATELY NEEDS IT and everyone screams at them for overcharging.
Posted: Jun 26th 2009 6:40PM HappyFunBall said
There's a huge difference between this and the iPhone. The iPhone was a NEW piece of hardware.
The PSP go, in my opinion, is a DOWNGRADE of an existing PSP. They remove a key component (UMD drive) and add flash memory (which every PSP owner likely has anyway). Ooooh, but it's smaller! Yeah, that's worth $100.
Reply
The PSP go, in my opinion, is a DOWNGRADE of an existing PSP. They remove a key component (UMD drive) and add flash memory (which every PSP owner likely has anyway). Ooooh, but it's smaller! Yeah, that's worth $100.
Posted: Jun 26th 2009 4:50PM Clone TrooperTZ said
I repeat, i will not buy it, since i recently bought like 3 8GB memory and if i can't use them on the pspGo, then..GO psp, bye.
Posted: Jun 28th 2009 6:33PM Nate Addison said
...which is exactly what I would want....but I have only basic tech skills (thank god for color coding) and am unsure of how to make that all happen on my psp 1000.
Featured Stories
Super Joystiq Podcast 004: 38 Studios meltdown, Gravity Rush, Civilization 5: Gods & Kings, Dragon's Dogma
Posted on May 25th 2012 3:30PM




