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.
Jim Sterling serves as reviews editor for Destructoid.com, head of the Podtoid podcast, and produces a number of news stories, original features, one-of-a-kind videos. With his passionate argumentative style, controversial opinions, harsh delivery, and dedication to brutal honesty Sterling is a name that you can't help but recognize.
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Contest:
7:40 PM on 06.25.2009
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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 :(
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.
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.
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. :)
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.
I appreciate candidness of his statement.
Article explains that it is not.
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.
What?
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.
http://theaddictedgamers.blogspot.com/
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.
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.
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.
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.
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.
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.
just dont buy it.
I'm not interested in one, and i wont buy one, but c'mon people.
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.
'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.
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.