Biggest Dutch Retailer Rejects PSPgo

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Biggest Dutch Retailer Rejects PSPgo

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Nedgame, Holland's largest videogame retailer, has announced that it will not be selling Sony's PSPgo when the handheld launches in October.

If you're a gamer in the Netherlands accustomed to shopping for your hardware and software at Nedgame - the Dutch equivalent of GameStop - and you're looking forward to the new iteration of Sony's portable PlayStation, you're going to have to look elsewhere: Representatives of the chain told Eurogamer Holland that the company would not be stocking the device for its October launch ... or, presumably, for ever.

As reported by the non-Hollandish Eurogamer, there are two primary factors contributing to Nedgame's boycott. The first is the price point: At €249.99 (£222.23 / $366.34), the PSPgo is €80 (£71.13 / $117.25) more than the PSP-3000, a fairly significant jump that Nedgame does not believe is justified by its capabilities - pointing to the smaller screen as a downgrade.

The other reason is also financial: The PSPgo, operating entirely on digital downloads, will not use UMDs, removing the most lucrative part of the deal for retailers - game sales. The profit margin on consoles and hardware is often much smaller than that on games and software, and many retailers often don't apply employee discounts to hardware for this very reason. As the PSPgo's games will be tied to one's PSN account, trading and selling used games will effectively be impossible, and Nedgame is uncomfortable "at Sony creating a monopoly on the software sold on PSPgo."

It's ... actually rather difficult to find fault with Nedgame's reasons, here. They're absolutely correct that their potential profits would be a ghost of what they would be for, say, the DS (or current PSP, for that matter) and the hefty price tag would mean that the PSPgo might just be sitting and taking up valuable shelf space in stores. Apparently, Nedgame isn't the only Dutch outlet boycotting the PSPgo - nor the only European outlet, for that matter. If you can habla Español, Eurogamer Spain says that local retailers may be thinking the same thing.

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You can't really blame Nedgame. It IS all about making money after all. But at the same time, if the PSPGo gets popular then NedGame just blew a huge oppurtunity.

Let them suffer the consequences good or bad.

Oh Nedgame, wees toch niet zo kleinzielig.

Accepteer de toekomst voor wat hij is.

.........Oh sorry, my Dutch pride took over a second.

So, go with the new PSP and not make quite as much money with a handheld that will probably be more appealing to the customers, OR stay with the outdated hardware that makes the retailers more money.

I really hate middle men sometimes.

Maybe if Sony had put in an extra analogue stick on the thing and bundled a UMD ripping drive then they wouldn't have this problem.

And who would pay almost as much for a PSPgo as an Xbox 360 Elite? Even if the retailers got a good margin I can't imagine there are enough people who are dumb enough to get it at that price. The fact that Sony have relatively recently announced the PSP-3000 and they are still going to continue selling it in parallel, the PSPgo is starting to look like a still-birth.

Expect a sudden delay for "technical reasons".

Why bother going through retailers anymore anyway? In an age of digital distribution where games don't need to be shipped to stores to be sold to customers, why not just sell new consoles/handhelds factory direct and streamline not only the software sales process but hardware as well?

GamingAwesome1:
You can't really blame Nedgame. It IS all about making money after all. But at the same time, if the PSPGo gets popular then NedGame just blew a huge oppurtunity.

Let them suffer the consequences good or bad.

What opportunity? They can't make any money off this.

GamingAwesome1:
PSPGo gets popular then NedGame just blew a huge oppurtunity.

I seriously cannot see the PSPgo getting big. One of my mates is the biggest Sony fanboy ever, and he isn't buying it simply because he can't play UMDs on it.

Casual Shinji:
Oh Nedgame, wees toch niet zo kleinzielig.

Accepteer de toekomst voor wat hij is.

.........Oh sorry, my Dutch pride took over a second.

Oh come on. Their attitude rocks and they're right.
*decides to go there even more for all things videogames*

SgtFlaman:
Why bother going through retailers anymore anyway? In an age of digital distribution where games don't need to be shipped to stores to be sold to customers, why not just sell new consoles/handhelds factory direct and streamline not only the software sales process but hardware as well?

The same reason the post office is still around even though emails can be sent immediately to their destination...

Good on you Dutchys. Now go take some drugs and engage in causual sex as your reward!

(read: I think this Nedgames reasons are excellent, and fair play to them)

Huh. How ironic that the first time I ever heard of my country's largest videogame retailer is through this site. Small world, huh?

GamingAwesome1:
You can't really blame Nedgame. It IS all about making money after all. But at the same time, if the PSPGo gets popular then NedGame just blew a huge oppurtunity.

Let them suffer the consequences good or bad.

A huge opportunity? Opportunity for what? Marginal sales?
There's is no opportunity in selling it, that's what the article is saying.

LTK_70:
Huh. How ironic that the first time I ever heard of my country's largest videogame retailer is through this site. Small world, huh?

That makes two of us, never even heard of Ned... erm I already forgot the name...

What stores does Nedgame supply? I hadn't even heard of them before I saw this article.

Just checked their site, they have 8 stores in the entire country, lol, nowhere near the biggest retailer then. (ok, they have a store in my area, and I've actually been there too, although I only noticed for the first time 3 weeks ago or so, didn't notice or remember the name though. =P)

As for not selling the PSP Go, well I can see their point a bit, they'd only get money for the hardware, and then nothing for the games, so it would cost them money, but still a bit childish. Not that it would be hard to get a PSP Go, plenty of other stores stock handheld gaming devices, so just get it somewhere else.

They have the right idea, why would anyone with half a brain pay £70 extra for the same product with a smaller screen, no hardware upgrade and no hard copies of games?

The worst part is that Sony will be charging retail prices for games that we not only don't have physical copies of, but that we're not even buying through a retailer. I'm all for this decision.

Nedgame isn't the biggest dutch games retailer by far. Blokker owns Intertoys, Bart Smit, the dutch Toys R usses and E-plaza, so they sell more then half of all games in the Netherlands. Nedgame owns about 7 stores, though their service is 10 times better (E-plaza tried reparing my PS3 with by poking it with a cigarette)

Wait wait, the PSP-Go doesn't play UMDs?
Where is the appeal to go from your old PSP to this one, then?
If some guy has 10 or 15 games on his PSP, then where is the appeal for the PSP Go?

Can he somehow download his titles on the new machine? OR is he screwed? Seems like a bad investment to me.

Beyond that, however, I can't really fault the store-chain for not selling it. It's a business, after all, and businesses want to make money (Go figure). If they can't make money off of it, then why sell it at all?

..Nedgame?

Never heard of it. And I'm pretty well informed about my game retailers.

Who in their right mind would pay £220 for a handheld console?

Let's call the Waaaaah-mbulance for these guys AND for Gamestop who will probably refuse to sell it for the same reason. Yay, Gamestop.

Let's all just order our PSPGo's online.

Meh. I don't really care about this. The old PSP was still better, so I can see where they're coming from.

Still, they're being big babies, not wanting to stock on something because they think it sucks. They're a big retailer, they should stock up on any products that have potential, regardless of if they don't support UMDs.

There right too, while the thought of sony actually doing something with the psp was pleasing, the PSPgo wasnt, its just one big cash in for sony, who will profit from its inflated price AND from the monopoly on digital downloads. There even sitting on the fence with it too by keeping umds and the 3000 going. It would be pretty funny to see a mass boycott of the psp go by retailers, as unlikey as that is. ultimately though, if your buying a digital downloads then your probably going to buy the console online. It begs the question though, how is a kid supposed to get there psp games off the internet, aside from nagging mom for the credit card, which she maybe reluctant to tie to a psp account so little timmy can buy everything.

Casual Shinji:
Oh Nedgame, wees toch niet zo kleinzielig.

Accepteer de toekomst voor wat hij is.

.........Oh sorry, my Dutch pride took over a second.

ik heb nog nooit wat van nedgame gehaald, ik heb ook geen enkele behoefte ervoor, en al zeker niet voor een PSP.

OT: the dutch don't care, we are to busy smoking pot legally.

I'm not wasting money on that crap unless it gets another anologue stick.

Pendragon9:
Meh. I don't really care about this. The old PSP was still better, so I can see where they're coming from.

Still, they're being big babies, not wanting to stock on something because they think it sucks. They're a big retailer, they should stock up on any products that have potential, regardless of if they don't support UMDs.

I think the problem here is more that they can't see themselves making a profit from this, since they won't be selling any copies of the games. In effect what Sony has done is removed the middleman from the equation, at least as far as the PSP is concerned. Whether or not that will work remains to be seen. But they basically consider that they could probably use shelf space on something that they can profit from. The economy isn't exactly in the greatest of shape after all.

Plus considering that the exchange rate puts it as more expensive than a PS3 in the States, it's hard to see people spending their hard-earned Euros on it.

Then again I have no clue what the standard amount of income for someone in the Netherlands is.

fix-the-spade:
They have the right idea, why would anyone with half a brain pay £70 extra for the same product with a smaller screen, no hardware upgrade and no hard copies of games?

Me, because it looks fancy :D
But, alas, I'll probably wait for the price to go down (In American dollars)...

I wouldn't want them in my store if there was a terrible profit margin and no games to sell with it. It would encourage my customers to spend a lot of money that I would see very little of. I'd rather they spend the same amount of money on things that actually earn a reasonable profit for me so I can enjoy the finer things, such as food, shelter, and all that jazz.

Pielewap:
Nedgame isn't the biggest dutch games retailer by far. Blokker owns Intertoys, Bart Smit, the dutch Toys R usses and E-plaza, so they sell more then half of all games in the Netherlands. Nedgame owns about 7 stores, though their service is 10 times better (E-plaza tried reparing my PS3 with by poking it with a cigarette)

Yeah, that was my thought too. Before Steam I bought all of my games at the local Bart Smit. Whose words were "Holland's largest videogame retailer" exactly?

Honestly, I don't blame nedgame for boycotting the PSPgo, it's really hard to find fault but since I don't live in Holland, I can't comment on the videogame retailer stuff, and also this could start a frenzy where the only people supplying PSPgo's could most likely be the usual suspect of Amazon

I'm not really interested in sonys portable games, the DS captured my attention more probably because I prefer the games that help me kill time.

This is a good call on their part, actually.

You see, without the sales of UMDs, the reason for them to even CARRY UMDs drops dramatically, and then there goes all their PSP profits, which means they might have to drop the PSP. Meanwhile, Sony rakes in the moolah with their digital distribution.

It's a rather pessimistic viewpoint that assumes a lot of people would move over to the Go, but I can't blame them for thinking that.

AceDiamond:

Pendragon9:
Meh. I don't really care about this. The old PSP was still better, so I can see where they're coming from.

Still, they're being big babies, not wanting to stock on something because they think it sucks. They're a big retailer, they should stock up on any products that have potential, regardless of if they don't support UMDs.

I think the problem here is more that they can't see themselves making a profit from this, since they won't be selling any copies of the games. In effect what Sony has done is removed the middleman from the equation, at least as far as the PSP is concerned. Whether or not that will work remains to be seen. But they basically consider that they could probably use shelf space on something that they can profit from. The economy isn't exactly in the greatest of shape after all.

Plus considering that the exchange rate puts it as more expensive than a PS3 in the States, it's hard to see people spending their hard-earned Euros on it.

Then again I have no clue what the standard amount of income for someone in the Netherlands is.

That's actually a good point.

Still, if this happens to Gamestop, I hope the PspGO sells more. I don't want to give those jerks anymore of my money.

Nedgame??? (Yes, I'm jumping on the bandwagon here.)
Thanks to my internet connection I know about GameStop and a bunch of other faraway companies, but I never heard of Nedgame; no way this is the Dutch equivalent.
I do appreciate their reasoning though, from what I understand the PSP Go is just a plain stupid idea from a consumer perspective.
It sounds like they're actually doing their customers a favour, even non-customers by being in the news and educating people that way.

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