Sony: PSP Go Costs More Because of a "Premium"

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Sony: PSP Go Costs More Because of a "Premium"

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The PSP Go doesn't cost more for any other reason other than that Sony thinks that new hardware should be priced according to "a certain premium," whatever that means.

When Michael Pachter called the PSP Go a "rip-off," he was being a little bit over the top, but I think we all agreed with what he was basically saying. At $80 more than the current PSP model, the thing isn't exactly cheap. So why the dramatic price difference? When MCV suggested it might be to protect retail margins (since there won't be retail game sales with the digital-only Go) or to recoup research costs, Sony denied both reasons.

"Those aren't the factors," Andrew House, president of Sony Computer Entertainment Europe, said. "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."

Now I don't have a MBA or anything, so forgive me if I'm getting mixed up here, but to me that sounds like there's no reason for making the thing more expensive other than the fact that new stuff is supposed to be more expensive, since they have that "premium" value. I see the business logic there - if something didn't cost more, it wouldn't seem like something newer or better than what's already out there.

"As with all hardware launches you look at the business model, the cost structure, and the necessary level of profitability, and you use that to set the wholesale price," House said. "Much as we do with any other hardware."

When Pachter apologized for his "rip-off" remark, he said that if Sony can "make a profit on the PSP Go, more power to them." I can't say I disagree - Sony should feel free to do whatever they have to in order to get themselves into the land of actually making money, but I can't help but feel that even if they did do their homework and are pricing the machine strategically, that it's still a bit much. I'm not sure gamers will perceive of the "certain premium" associated with the Go as clearly as Sony does.

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And apparantly it's even more of a "Premium" here in Europe. So what, we pay more for shiny things than the rest of the world? Bad form Sony. Is the PSP Go PSP2 or is it just a PSPi?

Are you sure this product is aimed completely at gamers?

What about the 16-gig flash drive ? You know, the one the standard PSP doesn't have?

Commander Breetai:
What about the 16-gig flash drive ? You know, the one the standard PSP doesn't have?

Memory's cheaper than a UMD drive, fewer parts.

Huh. So, basically this is "because we fucking can" model of pricing? Thats nice. No wonder I don't buy Sony stuff anymore...

Well, we can safely say that SONY has completely lost it's mind now. Before it was just suspected, but now? I'd hate to be the one's running that company when this blows up in their faces.

Premium not included, I'm still not even close to being sold on this new PSP.

Good luck with your new digital only distribution console, Sony. So, here I was thnking it wouldn't be possible for any current console to have less shelf space devoted to it than the current PSP...

Whoa, I can't believe the PR department let this one out. Basically Sony is openly telling everyone what they are thinking in a way which will make customers feel like they are being manipulated. It's just like revealing what you think about a player at the poker table, telling him what his weakness is and how you are able to exploit it.

Another good analogy would be if I was playing poker and told the fish at the table (the weak players) that I want them at the table so they can make the game profitable for me.

I used to like the PSP because it's newer models were not as pointless as the DS' latest installments for instance, but after I heard about this mockery of a "PSP" was being released and the price so laughable that I just thought to myself, "Why is Sony trying to drive AWAY their costumers", I doubt many people will buy this regardless of the 16GB drive, I think alot of people will just stick to the ol' memory sticks.

So basically.

My current PSP was much cheaper, can play PSX and PSP games (albeit because of custom firmware), and it doesn't have an obnoxious name tacked onto it.

I'm not sure I see why I'd buy that.

Especially since my memory card is already 24 gigs.

A playstation product that's a) overpriced and b) not worth the cost? Well, I guess there's a first time for everything, hm?

Wait I have to pay a "premium" for a device thats uglier and doesn't have a UMD drive? Awesome! Sony must read the minds of consumers when designing these devices.

It's gonna flop IMO.

A new handheld that not only fails to meet my standards, but isn't even worth the price?

Man, it's the DSi all over again.

Now all Sony has to do is have the power up animation be a middle finger parade and the sound effect be someone saying "Beeeeeoooootch".

Oh good, I'm not the only one that gets the impression that Sony's idea of marketing is to give their entire consumer base a giant middle finger.

Playbahnosh:
Huh. So, basically this is "because we fucking can" model of pricing? Thats nice. No wonder I don't buy Sony stuff anymore...

It's "because this is the price we think the market will bear" model of pricing which...is what everyone does. Including Sony when you could get a PS3 for less than it cost them to make.

Unfortunately, Sony has turned into the worst company ever PR-wise.

Cheeze_Pavilion:

Playbahnosh:
Huh. So, basically this is "because we fucking can" model of pricing? Thats nice. No wonder I don't buy Sony stuff anymore...

It's "because this is the price we think the market will bear" model of pricing which...is what everyone does. Including Sony when you could get a PS3 for less than it cost them to make.

Unfortunately, Sony has turned into the worst company ever PR-wise.

Until someone does an estimate on how much a PS3 costs to mke can we all stop referring to price for it. I mean I don't mind but I wanna be absolutly sure.

Speaking of the Go! hands up if you got a PSP. okay all of you that did you are not the target market. The target market is those who do not have PSPs. As for me I suggest if you don't have one you pick up a 3000 or 2000 which they still sell.

Here we go again with the "oooh noooooes it's too expensive!" cries from the gutter.

The current generation of people on this planet annoy me... they always want something for nothing and demand that everything be conveniently priced with them in mind. Nevermind a Business making a profit, oh no, can't have that! Nobody should have to "save their money" or work a little extra time in order to afford what is essentially a luxury item! Everything should be as close to free as free can get!

If you want one, save up and buy it. If you don't want to work for it, don't OWN it.
Just get over the "it's too expensive!" tear-fest already.

Premium is another way of saying "You're paying for the brand name". It's the same way a Tommy Hilfiger T-Shirt, which comes out of the same Chinese factory as Walmart's "Penmans" brand, costs $50 instead of $7.

How that does not translate into rip-off, I don't know.

*sigh*

God dammit Sony. You don't tell people that you made it cost more because you wanted it to. You tell them a whole bunch of lies about how you have to recoup expenses, like with the 360 Elite. You need to pay some fucking attention.

I heard the pricing is because they're trying to compete with the iPhone/iPod Touch. Though I have no reliable sources...

HyenaThePirate:
Here we go again with the "oooh noooooes it's too expensive!" cries from the gutter.

The current generation of people on this planet annoy me... they always want something for nothing and demand that everything be conveniently priced with them in mind. Nevermind a Business making a profit, oh no, can't have that! Nobody should have to "save their money" or work a little extra time in order to afford what is essentially a luxury item! Everything should be as close to free as free can get!

If you want one, save up and buy it. If you don't want to work for it, don't OWN it.
Just get over the "it's too expensive!" tear-fest already.

Thank you, amen, and you're preaching to the choir all at once. This is what I've been hoping for.

HyenaThePirate:
Here we go again with the "oooh noooooes it's too expensive!" cries from the gutter.

The current generation of people on this planet annoy me... they always want something for nothing and demand that everything be conveniently priced with them in mind. Nevermind a Business making a profit, oh no, can't have that! Nobody should have to "save their money" or work a little extra time in order to afford what is essentially a luxury item! Everything should be as close to free as free can get!

If you want one, save up and buy it. If you don't want to work for it, don't OWN it.
Just get over the "it's too expensive!" tear-fest already.

It's not so much the price, but the fact that Sony is telling its potential customers, "Yes, we could easily give you a better price for the product; but we don't want to."

"A business that makes nothing but money is a poor business." -Henry Ford.

It's way better to provide a cheaper product that will sell more and then accumulate a fan base than to try to make a profit off of the few that buy a single product.

The outrage at the price is entirely acceptable and if you are not angry at this, then you do not understand the value of the customer's dollar and are actively promoting a poor business.

Mabey it's just my old school sensabilitys(sp) but, damn it, when I own a game I want some kind of physical representation of that game, be it hardware disk or whatever. I guess thats just my reason for not getting a PSP GO.

Generally speaking I keep wondering how Sony manages to stay such a massive and successful company. 99% of the time they come accross like drooling retards.

But then again the scary thing is that I've run into a lot of Japanese/Asian racism towards whites over the years, and they generally seem to see "Caucasians" as some kind of race of inferior morons who have simply managed to stumble into wealth and prominance due to dumb luck and are cluelessly asking to be milked dry. I see this attitude among Asian gamers towards American/European ones as well, and as I've mentioned before from some translated periodicals and such I've seen over the years it seems that keeping something "JApanese Only" rather than selling it to the "Child races" can be a selling point. Not only that but pure profit isn't always the motivating factor in some desicians like this, and racism can play a decent role (ie Japanese empowerment before money).

At any rate, a lot of what is being said over the years seems to be based on the idea of American stupidity. We'll pay a huge price for a PSP-GO which will run entirely on digital downloads and microtransactions (which already annoy people) simply because it's new and they say there is a "premium" involved.

It's right up there with the stupid comments when the PS-3 first came out and Sony was asked how anyone was supposed to afford one and the attitude was basically "Work more hours". Ohhhhkaaaaay.

Over the last few years I can't help but wonder how this company has won the video format war, never mind remaining an industry standard... or heck, why haven't they self destructed?

Right now the PSP is a cool idea, I like the graphics quality and such. But the problem is limited support, and issues like loading times and such. My DS is smaller, and while not as powerful simply works better for what it's intended to do.

The PSP-Go seems to be designed to make the whole idea of a portable gaming system more expensive and annoying. Maybe I'm missing something but given their relative position compared to Nintendo on the portable market already this seems like a lemming-like suicide rush.

>>>----Therumancer--->

Eric the Orange:
Mabey it's just my old school sensabilitys(sp) but, damn it, when I own a game I want some kind of physical representation of that game, be it hardware disk or whatever. I guess thats just my reason for not getting a PSP GO.

i'm with you

Sony PSP is chasing apple! They are going to lose! Meanwhile let's see is the Zune becomes Microsoft's gaming portable :P

Onmi:

Eric the Orange:
Mabey it's just my old school sensabilitys(sp) but, damn it, when I own a game I want some kind of physical representation of that game, be it hardware disk or whatever. I guess thats just my reason for not getting a PSP GO.

i'm with you

Ok, ok, I will adimit to one bit of playing a "download only" game. Plants VS Zombies. That game is AWSOME, but I only downloaded it becasue there was no hard copy alternative.

Eric the Orange:

Onmi:

Eric the Orange:
Mabey it's just my old school sensabilitys(sp) but, damn it, when I own a game I want some kind of physical representation of that game, be it hardware disk or whatever. I guess thats just my reason for not getting a PSP GO.

i'm with you

Ok, ok, I will adimit to one bit of playing a "download only" game. Plants VS Zombies. That game is AWSOME, but I only downloaded it becasue there was no hard copy alternative.

but there will still be hard copy UMD's produced for the 3000 because they aren't halting production on it (just like the Lite is still being produced)

Tenmar:
Sony PSP is chasing apple! They are going to lose! Meanwhile let's see is the Zune becomes Microsoft's gaming portable :P

Be the dumbest move Microsoft could pull.

1. Nothing will ever beat Nintendo. EVER, Sony never had a chance, nobody had a chance.

2. With the PSP and DS taking up a large amount of the market Microsoft would have to struggle to make sure the new handheld doesn't flop.

It's just not viable business

Onmi:

Tenmar:
Sony PSP is chasing apple! They are going to lose! Meanwhile let's see is the Zune becomes Microsoft's gaming portable :P

Be the dumbest move Microsoft could pull.

1. Nothing will ever beat Nintendo. EVER, Sony never had a chance, nobody had a chance.

2. With the PSP and DS taking up a large amount of the market Microsoft would have to struggle to make sure the new handheld doesn't flop.

It's just not viable business

The dumbest move they could pull would be to keep the name 'Zune' which pretty much translates to failure in the modern perception of consumers. It would be like Sega returning in the console buisness by releasing the Dreamcast 2.

I agree it's stupid to compete with the other handhelds right now, especially with Nintendo, but that sure won't stop MS. They are desperatly trying to get a piece of the Wii success with Natal (which is even more stupid if you think about it), so I wouldn't be surprised if they entered the handhelds.

HyenaThePirate:
Here we go again with the "oooh noooooes it's too expensive!" cries from the gutter.

The current generation of people on this planet annoy me... they always want something for nothing and demand that everything be conveniently priced with them in mind. Nevermind a Business making a profit, oh no, can't have that! Nobody should have to "save their money" or work a little extra time in order to afford what is essentially a luxury item! Everything should be as close to free as free can get!

If you want one, save up and buy it. If you don't want to work for it, don't OWN it.
Just get over the "it's too expensive!" tear-fest already.

If I had the time and really cared I'd go and find out about what your opinion on L4D2 is just to make sure you're consistent, but instead I'll just continue.

There is a difference between something being expensive because it is, and something being expensive because the company is basically saying "we want more money than we should be making off this thing". And this is the latter. The console itself is cheaper to make than the current PSP iterations, and there is no reason for it to be $80 more expensive than the current PSP version. None. Except for "making some damn money". And yes, profit is good, but when you make an updated version that is $80 more than the current one and all it throws out the current media format to boot, thereby necessitating a whole new set of game library purchases, I simply cannot see the price as being justifiable. Now, I'm not saying I wanted it "for free", in fact I too am against the "what about me" culture that has risen up in gaming. However the complaints I've seen about the PSP Go's price are far more valid than the complaints about DLC not being free or the aforementioned L4D2 being a sequel released on time for once. And hey, I wasn't going to buy any PSP ever anyway, so I have no stake in the price argument except for saying that this feels like a bad business decision on Sony's part especially since they could've made a killing off the distribution method (licensing fees and so forth, not to mention the fact they're planning to have it run non-gaming stuff as well, cause we all know the last thing gamers want out of their games console is for it to play games).

And just consider this. The Nokia N-Gage was priced at $299. And we all know what happened there. I do not forsee the DS/DSi trouncing the PSP Go as badly however (mostly because the price difference is smaller), but still.

People buy shiny new things. Cost doesn't factor in for these people. SONY knows that americans,asians,europeans will all buy their new shiny thing. So why should they lower the price if they know that people will buy their shiny new thing?

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