Despite the fact that Sony will sell downloadable PSP games for the same price as their UMD counterparts, the digital-only status of the PSPgo has still managed to rub some retailers up the wrong way. Chief among them is Nedgame, a leading Dutch retailer that has refused to stock the PSPgo when it launches on October 1.
Nedgame will continue to support previous PSP models like the PSP 3000, but the latest Sony handheld has been officially boycotted, and I'm sure we can all guess why a retailer that deals in secondhand games would have a problem with a disc-less system.
"We hope you understand our decision," explains the retailer. "Most gamers still want a box and booklet in their game, or at least the choice between a physical product or a download. The PSP GO! Sony cut the consumer choice and thus creates a monopoly on the PSP GO! game sales. We see this as a very bad development for both the consumer and the retailer."
What do you make of this? Are retailers right to shun the UMD-less system, or is the retailer cutting its nose off to spite its face. With rumors of other European stores planning their own boycott of the PSPgo, this could indeed be a case of real bad blood between Sony and the sellers.
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Contest:
8:20 AM on 09.16.2009
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This could be a sign that converting to the digital age may not be as easy as video game companies would like if some of the big retailers refuse to carry their digital platforms. If Walmart, Target, Gamestop, etc, realize they'll be cut out of the loop, will they be willing to stock these future digital platforms? Time will tell.
Honestly, I'm a bit worried about Sony monopolizing its distribution channels. But used game retailers are just as bad.
But yes, even -10 on download games should be mandatory. The retailer mark up alone makes it worth it, in addition to the money saved on a physical product.
Ultimately the future of the industry is likely to be much more download heavy, and clearly that's the way Sony is moving with the PSPgo. So it seems kind of inevitable to me that the boycotting retailers will have to start making some concessions concerning the stocking and selling of download-only hardware eventually. Still, who knows? Maybe all this newfangdangled download-only stuff won't catch on.
If it were as popular as the DS and Sony were simply trying to milk it's success, it would at least make some sense to me.
My current PSP is sat on my shelf unused and gathering dust. I cannot justify spending the same cash I did 4 YEARS AGO on yet another model that may become obsolete the second the decide it needs a new lick of paint or "must have" upgrade.
The point is they will not get the money for the games if they are download only. Sony is the only one getting the money if you download the game. If you buy a PSPGo the retailer will only get money from the hardware sales, all future game downloads only profit Sony as you cannot buy them at any retailers.
Don't get me started on prices. Sony already charges $40 on some new UMD games, which is absolutely outrageous. No portable game should be that expensive. I haven't checked out the Sony download store in a while, but if they think they can sell downloads for $40, they are dead wrong. Pricing is one big reason that the used market exists!
I really think all three (Sony, MS, Nintendo) need to rethink their pricing strategies with games these days. IMO, Nintendo is closest to getting it right at this point, but if prices stay the same while removing consumer needs, I would predict another crash in the videogame market.
Consumer buys game, later trades it in and gets a tiny amount of the retail price. Consumer gets royally screwed.
DD:
Consumer buys game, cannot trade it in, cannot buy it used. Consumer gets royally screwed.
Digital personal property (DPP):
Consumer buys game, devs get money, game can be sold between people, (but not at retail) lent or given freely, but not duplicated. Everybody wins!
What will I have to display on my shelves without cases?
[QQQQ]
I'll pay premium for my games if it means I get better convenience and portability.
Poor executive decision that makes them look immature and too one-sided.
Haha yeah I get what you are trying to say. I just feel that retailers need to stop trying to prevent the inevitable and start getting creative with their businesses. Instead of bitching and moaning about digital distribution, they should be trying to charge Sony for carrying PSN Cards. Or sell codes for the games but include promotional gifts like key chains or lanyards to get people to buy through them instead of the just picking up prepaid cards. They need to start using their heads.
Even music stores sell MP3 players so they really shouldn't treat video games any differently.
Also, the Go will cost £225 which is about $370 so why the hell should any British retailer stock it or any customers buy it anyway?
Case and point: Blockbuster is closing some 600+ stores next year.
What happens when it no longer clicks into the open position? wait 2 months for sony to fix it thats what.
These issues in conjunction with the whole digital distribution only thing is why the psp go will only sell to the impulse buyer's (i like to call them the iphone crowd) and the parents who know their kid wants a PSP for christmas, and assume that this newer unit is the greatest available.
Anyone remember the problem with rockband / guitar hero / giant plastic peripheral games? They took up so much space... retailers were starting to figure it was just cheaper to stock 10 copies of madden in one allocation rather than 1 copy of guitar hero. It's all about profits in relation to available space.
Sorry... they began to realize it was more PROFITABLE to stock 10 copies of madden instead of one guitar hero.
If I were a retailer ... my priorities for merchandise would be.
Merchandise with high profit margin
Merchandise with low profit margin
Merchandise with lower profit margin but could bring customers back
then way at the bottom
Merchandise that I make no profits on and sell just out of the goodness of my heart and love for SONY.
Really... for the life of me I can't figure out why ANY retailer is selling this hardware.