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Sony charging so much for PSPgo because ... well ... it can! photo

Earlier today, we ran a story about SCEE's Andrew House claiming that Europeans don't care about the expensive nature of the PlayStation brand. Well, he didn't stop there, becoming quite candid about the PSPgo's ridiculous European price hike. Do you know why Sony's charging so much for the new PlayStation Portable? Because it can, dummy!

When asked by MCV if R&D or retail markups were the reason for the PSPgo's exorbitant 250 Euro price tag. House is remarkably honest, stating that there is no valid reason for the cost, Sony simply felt like charging that much. 

"Those aren't the factors," House explains. "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."

That's all there is to it. Sony is simply taking the opportunity to "say" that the PSPgo costs as much as it does, and practically admits that they could be a lot less expensive if Sony simply said otherwise.

It's not like it's an uncommon practice, and it's not like Microsoft and Nintendo aren't equally as guilty, but just blatantly admitting that you're punishing early adopters through sheer greed leaves a sour taste.


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38 comments | showing # 1 to 38

dip's Avatar - Comment posted on 06/25/2009 19:46
dip
Oh Sony.
Jonathan Holmes's Avatar - Comment posted on 06/25/2009 19:47
Jonathan Holmes
Me thinks this will backfire.
Takeshi's Avatar - Comment posted on 06/25/2009 19:47
Takeshi
I don't care how many organs it will cost me. I'm gonna get it day one.
Cynical Gamer's Avatar - Comment posted on 06/25/2009 19:50
Cynical Gamer
Can't wait till pirates hack the PSPgo!
smerff's Avatar - Comment posted on 06/25/2009 19:50
smerff
I don't see why anyone is upset. All manufacturers of all major entertainment products do it. At least he's honest about it.
Kabuto Drew's Avatar - Comment posted on 06/25/2009 19:51
Kabuto Drew
Shame on you Sony shame on you!
Maybe it's just me but the more I hear about this thing the less I want it. It's definitely not a first day buy for me anymore :(
Elsa's Avatar - Comment posted on 06/25/2009 19:51
Elsa
... they'll drop the price after all the early adopters get one (just like they did with the PS3).
tttt30's Avatar - Comment posted on 06/25/2009 19:53
tttt30
they took a major hit on the PS3, and there was a lot of criticism for that while the Wii was praised for being profitable.

Now they are taking criticism for the PSPgo being profitable. well, it is the price of a PSP 3000 and a 16gig memory card, I dont like UMDs especially when I travel so it is not a bad deal for me. they need to make a profit, that is the business they are supposed to be in, and have been doing a poor job of it recentley.

Still, I wish it was a bit cheape of course, just wanted to bring another perspective to think about.
Daxelman's Avatar - Comment posted on 06/25/2009 19:55
Daxelman
Gunna wait for one of those Amazon Deal Of The Day deals if I even want to land this ugly piece of shit in my hands.
seamonkey420's Avatar - Comment posted on 06/25/2009 20:04
seamonkey420
imo, i think its a preemptive attack against piracy.

make the initial cost to own high and a profit so that atleast you don't get burned in the piracy/software side as much since you made a few bucks on the hardware and limit the initial market penetration (perhaps a more apple type ideaology?? smaller market but higher profits = more security since smaller market)

honestly don't have anything against that idea or the fact that they want to make money on a console for once.
will it still sell?? who knows, guess we'll see.
seamonkey420's Avatar - Comment posted on 06/25/2009 20:08
seamonkey420
and one other thing.

early adopters are used to paying out our a$$es for the latest and greatest. :P

that is what it is to be an early adopter. however, we also are the ones that get the best hardware or the most hackable/moddable verions. :)
DinnertimeNinja's Avatar - Comment posted on 06/25/2009 20:20
DinnertimeNinja
It's not a HORRIBLE deal, and they're going to try and initially market it to iPod Touch consumers so it makes sense to price it $50 cheaper than said machine.

This pretty much confirms my thoughts on the matter, and I think this will really be good for all parties involved. Early adopters can get one for a not TOO terrible price, Sony makes some extra money (which they NEED), and people holding off on purchasing it shouldn't have to wait to long for a price drop (most likely it'll settle in at $200 for a while).

I probably wouldn't have the money for a new PSP during such a busy gaming season anyway. I'll gladly wait for them to drop the price and streamline the whole digital download system.
Dexter345's Avatar - Comment posted on 06/25/2009 21:17
Dexter345
So then, Pachter was right?
BattyAdroit's Avatar - Comment posted on 06/25/2009 21:33
BattyAdroit
Remind me why is this any different from what other companies do? They are not benevolent beings here to grant us the power of mythical videogames. They're here for your almighty dollars.

I appreciate candidness of his statement.
Jim Sterling's Avatar - Comment posted on 06/25/2009 21:45
Jim Sterling
"Remind me why is this any different from what other companies do?"

Article explains that it is not.
cornerman8's Avatar - Comment posted on 06/25/2009 23:48
cornerman8
It costs Apple 178 to make the iphone. It sells for more than twice that. They make nearly 97% profit on everything they sell. Folks line up for the iphone...alot of these media guys (not saying Destructoid in particular) use and iphone or have an ipod. What's the difference? The only difference is "percieved" value.

The 360 is 199.99. Most folks will end up spending the same amount in necessary components that they'll end up with a core system. Not including the strength of the 360...Live (which you have to pay for) The Wii is $250 and most people end up spending at least $50 to $100 more in accessories. The wii does not offer the same things as the 360, and the 360 doesn't offer the same thing as the PS3.

I find it funny that media folks (not pointing at Destructoid) who spent $400+ on a 360 and/or PS3 when they launched; somehow indirectly suggest that the PS3 is somehow not worth it. They bought one...and in some cases an iphone. Why the hate for the PSPGo that's obviously getting a significant push software-wise AND is purely optional as the original is still in produciton. Folks are buying DSes (while complaining about software offerings), but there's no outcry.

Sony's worked hard to lower the price of the PS3, and they'll work harder to lower it again. I personally think the price is high to compensate for the PS3 and the possible price-cut it will eventually receive. Consumers are "ripped off" to a greater extent by other companies. I know Sony left a bad taste in folks mouth in 2007, but I think its important to provide some context.
shinryu108's Avatar - Comment posted on 06/25/2009 23:58
shinryu108
duh. welcome to capitalism, people.
Dimly's Avatar - Comment posted on 06/26/2009 00:10
Dimly
I know that other companies do this too... but isn't that sort of up charging for items usually companies that are doing really well? Not, ya know, the bottom of the totem pole?
DinnertimeNinja's Avatar - Comment posted on 06/26/2009 01:06
DinnertimeNinja
@Dimly

What?
sohnvonben's Avatar - Comment posted on 06/26/2009 01:07
sohnvonben
@cornerman, Well yes that's true but lets go back to this perceived value you mentioned. What does the PSPGo have going for it that makes it worth so much? it can do the exact same thing as a normal psp except a bit less in some places and a bit more in others. Of course I might be wrong to consider this an equal trade thus pricing it equal to the original psp.

But then again there is nothing wrong with trying to make a profit, but all I know is they aren't going to make a profit off of me because I don't see a big enough difference between the new psp and the old to entail the higher price. Also I've worked with sliding screens before and they break REALLY easily. One false move and you might end up with a broken system not worth the price.
mbradley1992's Avatar - Comment posted on 06/26/2009 01:07
mbradley1992
I understand why they are charging as much as they are for it. As much as they are losing with each PS3, they needed to make it up somewhere. Also, the fact that the PSPGo is so expensive could allude that before Christmas, we will see a price drop for the PS3 since, again, the PSPGo price seems like it is making up for the lost money on PS3s.

http://theaddictedgamers.blogspot.com/
Frohike's Avatar - Comment posted on 06/26/2009 01:08
Frohike
Has anyone told Sony about the recent turn of events with the world economy? Maybe someone should...
sohnvonben's Avatar - Comment posted on 06/26/2009 01:09
sohnvonben
Also, a flip screen would have protected the damn glossyness better. It is so enraging to look down at my PSP and notice the scratches in it because it can't protect itself in a pocket. Y'know, the place you keep portable systems?
whormongr's Avatar - Comment posted on 06/26/2009 01:23
whormongr
I am gonna wait it out a bit- the way things get hacked right now 1st gen isn't as vital as it used to be
themizarkshow's Avatar - Comment posted on 06/26/2009 01:34
themizarkshow
I'd rather them just go ahead and say that honestly, than weave up some bullshit which will just backfire on them when its found out they lied. Honesty can often go a lot further in the marketing business than deceit.
Stella Wong's Avatar - Comment posted on 06/26/2009 03:50
Stella Wong
oh of course they can it's Sony afterall. Great header picture Jim XD;; I can never get enough of Ducktails.
Sexualchocolate's Avatar - Comment posted on 06/26/2009 03:53
Sexualchocolate
This is the basis of capitalism.

Nothing costs what it is worth. Everything is priced at "what people will pay"

It's not like Sony are doing anything different to any Company in the capitalist world, they're just being up-front and honest about it.

Still, my PSP1000 will last a little longer and i'll wait for a price drop because I understand, it costs extra to be the "first" to have a new piece of kit.

What has happened to this site, it's turned into such a Sony Hate site recently. Fuck yall.
Aurain's Avatar - Comment posted on 06/26/2009 05:16
Aurain
SexualChoc. Sony are behaving differently to Microsoft in particular.

Other companies cut their prices to cater to a larger market, to survive in the dog eat dog world.
Microsoft cut the price of their Xbox to lower than that of the Wii to persuade people who wanted a Wii to get an Xbox instead.

Microsoft also release shit in Europe on their Xbox Live at the same time as USA.

Destructoid hasn't turned into a Sony Hate site. Sony is just doing alot of stuff that is digusting and unworthy of Praise. When they do good stuff, they'll get good press.
masterninja's Avatar - Comment posted on 06/26/2009 05:53
masterninja
@Aurain wait you go to the same xbox live i log into?

Both have things they dont release at the same time in other territories...
The thing is you dont have to be gold on psn...all you gotta do is make a USA account so I guess both have pros and cons...

However to get ontopic Im still satisfied with my psp and I'm gonna wait until the actual next PSP instead of a newer model of this one.
Onlineatron's Avatar - Comment posted on 06/26/2009 06:19
Onlineatron
At the end of the day it's a good buisness practice.

They make money on every PSP-3000 sold t a £140 price tag. Considering the PSP-GO costs less to make therefore it will make a hell of a profit. Some people will buy it at £250 and Sony will make a huge profit...

Which in turns means more features/games for us the consumer! Then Sony will drop th price down to £150 and it will sell even more.


I honestly can't blame them.
DrXym's Avatar - Comment posted on 06/26/2009 06:36
DrXym
I'm in the market for a new PSP but there is no way in hell I'd pay a premium for a UMDless device, especially as there seems no way to carry my collection over. Why would I want to do that?

If anything the PSPGo should be cheaper than a regular PSP to lure people, and also because its probably more secure against piracy and with no second hand sales of games it will be more profitable. I don't even believe that the cost of 16Gb is a reason to jack prices since you can buy 16Gb for $30 retail, so the cost to Sony is likely to be half. Sony probably save as much from junking UMD as they do from adding flash making it a neutral expense.

So Sony can sell for whatever price they likes but if they think sales are assured they'll have another thing coming.
hermes's Avatar - Comment posted on 06/26/2009 07:59
hermes
That is capitalism for you. Only thing this should teach people is to stop looking at companies like they were the new Gandhi or Hitler...
Sexualchocolate's Avatar - Comment posted on 06/26/2009 10:03
Sexualchocolate
Funnily enough, my dog chewed the shit out of my UMD case and a number of the UMD's in there yesterday!

So carrying over my collection is no biggie now, plus, I only really play Monster Hunter on it anyway.

Spoke to the guy at GameStation today and he say's they're going to stock it, they reckon a 250 euro price will be under £200 in the UK so a launch model might not be out of the question.
glitched's Avatar - Comment posted on 06/26/2009 10:15
glitched
for those people who complain about "this econonmy" and that sony needs to lower the price because you cant/people cant afford their gadgets. Have you thought that maybe sony as a corporation is also stuggling? and THEY cant afford to lose money for YOU?

just dont buy it.
I'm not interested in one, and i wont buy one, but c'mon people.
Vrynix's Avatar - Comment posted on 06/26/2009 10:21
Vrynix
At least I think it's a sign of progress that they're trying a different price stratagum. The low entry cost model has sufficed quite well but that doesn't rule out the alternatives.
I just hope that if it succeeds it won't be adopted by the rest. Then again this is all probably fallout from Sony headquarters abandoning the optimum market share strategy and switvhing to profitability.
Onlineatron's Avatar - Comment posted on 06/26/2009 11:52
Onlineatron
@Sexual Chocolate
'Spoke to the guy at GameStation today and he say's they're going to stock it, they reckon a 250 euro price will be under £200 in the UK so a launch model might not be out of the question.'


Play.com is selling it for £250 and Amazon and Shopto have a £230 price tag.... so if online retailers have those tags normal stores will more then likely be higher.
georgiom's Avatar - Comment posted on 06/26/2009 13:00
georgiom
£250, not $250 and can't transfer my collection. Thanks but no thanks. I'll just hold off for next gen psp.

I can't knock Sony for trying different things with their pricing this go around, but House dropped the ball when delivering the message. It's as if he is trying to spit on our collective faces all sneaky like.
brainderailment's Avatar - Comment posted on 06/26/2009 13:41
brainderailment
I will not buy one until it's cheaper than a 3000.
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