Analyst Pachter On PSP Go: "$249 Is Too Much. Period."
As nifty as that new digital wonder is, some people think it's simply too expensive. When Kaz Hirai officially unveild the PSP Go! at Sony's E3 press conference, he made a point of saying it would launch at the same price of the original PSP: $249.99. But despite the advancements, Wedbush Morgan analyst Michael Pachter says it's just too high.
Now, if you will remember, the PSP Go! is a fully digital gaming unit that disposes of the UMD software utilized by previous PSP iterations and relies entirely on digital downloads. But because it doesn't boast the iTunes App Store or downloadable music from iTunes, Pachter doesn't understand how it can compete with Apple's iPod Touch, which is priced at $229. Well, you should be able to put music on the PSP Go! but it won't be the streamlined process as it is with the iPod Touch, although we should probably point out that Sony's portable unit is still for games. This doesn't sway Pachter, though, as he said in a recent episode of Bonus Round: "$249 is too much. Period." He further doesn't understand the price point, as he claims it costs Sony less to manufacture the PSP Go! than the current PSP-3000. Added Pachter:
"The $169 PSP-3000 is a profitable device -- the disc assembly, for a UMD, costs more than 16 gigs of flash does. So this new device doesn't cost them as much as the PSP-3000 and they jack the price up $80?. They're rippin' off the consumer ... they're making a lot more money on the PSP Go than the PSP-3000."
Well, we can't fault a company that seeks to make money on a product, especially after they took an early beating with the first PSP models. But then again, we imagine many consumers will agree with Pachter's analysis; $249 is a little scary these days. What say you? Are you willing to pay the extra amount for this all-digital upgrade? Or is Sony gouging you simply to make a little extra cash? And if it's the latter, does that sway your purchase decision? Or are you a Day 1 buyer?
6/10/2009 Ben Dutka