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
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Comments (Beta)
N a S a H
Wednesday, June 10, 2009 @ 3:21:36 PM
MadKatBebop
Wednesday, June 10, 2009 @ 10:51:28 AM
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LimitedVertigo
Wednesday, June 10, 2009 @ 10:53:05 AM
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The PSPGO is simply a restricted product with a smaller screen then its predecessors. My hands already get cramped on my existing PSP, I can only imagine what the smaller size of the GO would do for my hands.
therabbitkinge
Wednesday, June 10, 2009 @ 10:55:35 AM
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jaybiv
Wednesday, June 10, 2009 @ 11:07:23 AM
anjpikapp3
Wednesday, June 10, 2009 @ 12:44:22 PM
As for the PSP GO...i think this will be a flop as ppl (gamers) still like hard media.
Last edited by anjpikapp3 on 6/10/2009 12:49:22 PM
jaybiv
Wednesday, June 10, 2009 @ 11:05:49 AM
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Some of you pinheads are just plain up cheap. You complain about the high price for premium Sony products but throw your money away on $5 coffees, $100 jeans, $300 iphone and such.
MadKatBebop
Wednesday, June 10, 2009 @ 1:52:47 PM
dso8515
Wednesday, June 10, 2009 @ 5:52:59 PM
Fane1024
Wednesday, June 10, 2009 @ 7:39:22 PM
No, I don't buy $5 coffees (etc.), because I'm not stupid...and I won't pay $250 for a PSP go either.
No second analog stick (or gps or camera or anything else) = no real upgrade = no buy.
Pachter is 100% right, for once.
p.s. I happily paid full launch price for my PSP 1000 and my PS3.
Last edited by Fane1024 on 6/10/2009 7:43:48 PM
crawdaddy
Wednesday, June 10, 2009 @ 11:28:49 AM
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Last edited by crawdaddy on 6/10/2009 11:35:34 AM
fluffer nutter
Wednesday, June 10, 2009 @ 1:45:27 PM
crawdaddy
Wednesday, June 10, 2009 @ 11:47:59 AM
crawdaddy
Wednesday, June 10, 2009 @ 11:59:03 AM
Fane1024
Wednesday, June 10, 2009 @ 7:46:56 PM
TheHighlander
Wednesday, June 10, 2009 @ 12:58:11 PM
LegendaryWolfeh
Wednesday, June 10, 2009 @ 2:57:43 PM
IonHawk
Wednesday, June 10, 2009 @ 4:06:36 PM
TheHighlander
Wednesday, June 10, 2009 @ 5:05:15 PM
It's configured as internal memory. The thing is it's simply 16GB of flash memory, just like a MemoryStick, but it's physically installed as part of the system. I should have been clearer though, the 16GB is NOT a separate MemoryStick card, it is internal.
What I was trying to get at was that unlike all other PSPs that have no internal storage, this one comes with 16GB right out of the box, so it's effectively the same as having a PSP-3000 with a 16GB memory Stick in place.
Fane1024
Wednesday, June 10, 2009 @ 7:56:17 PM
$200 would have been a reasonable "premium" launch price.
I wouldn't buy it at any price, for reasons stated earlier.
TheHighlander
Wednesday, June 10, 2009 @ 10:44:17 PM
Although there can indeed be only one, this is not the time of The Gathering....
About Flash memory and UMD drives. The street price for a 16GB MemoryStick is about $70 at best. Are you suggesting that a UMD drive costs as much as that? Unless Sony has specifically released a BOM for the PSP Go! to analysts, along side one for the PSP-3000, Patcher really doesn't know how much a UMD drive costs, nor how much the 16GB of Flash in the unit actually costs. One thing is for sure though, if you try buying a PSP-3000 and 16GB of MemoryStick together, you'll pay $250 give or take a handful of $.
From a Sony point of view the PSP Go! isn't the same as a PSP-3000, they are not directly comparable because the Go! introduces 16GB of internal storage, a new form factor with sliding case and at least one new technology (new to PSP) - BlueTooth. I just don't think that you can make a direct comparison between them and expect an equivalent price. The new Go does offer a reasonable upgrade. All this is just an opinion of course.
I bet we agree on one thing though, it won't sell for $250 during 2010.
I'm hoping that PSP2 will be a complete redesign with a bit more CPU and GPU, but total backwards compatibility. Integrated Camera and GPS functionality would be a plus...of course I'd buy both for my PSP-2000 right now if SCEA bothered their butt long enough to launch either.
Last edited by TheHighlander on 6/10/2009 10:50:53 PM
somethingrandom
Tuesday, June 16, 2009 @ 12:29:01 AM
Deleted User
Wednesday, June 10, 2009 @ 12:05:25 PM
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GHill4Life
Wednesday, June 10, 2009 @ 12:23:36 PM
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Jalex
Wednesday, June 10, 2009 @ 12:28:19 PM
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So I'm probably going to use some of the money I've been saving for the next console in order to get this (and I haven't felt like I've gotten my money's worth out of a handheld system since the Nomad).
Yogi
Wednesday, June 10, 2009 @ 12:29:31 PM
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http://www.amazon.com/16GB-Ssd-2-5-Sata-Chips/dp/B000WW1TC4/ref=sr_1_3?ie=UTF8&s=electronics&qid=1244654800&sr=8-3
and what is with him saying that Natal is going to be UNDER $50 while the PS3s wand eyetoy combo is going to be $249. Natal under $50, from the company that wants you to pay $100 for a wi-fi adapter. Yea, Pachter is either a fan-boy or getting paid by M$.
fluffer nutter
Wednesday, June 10, 2009 @ 1:51:17 PM
ksfrench79
Wednesday, June 10, 2009 @ 12:49:59 PM
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TheHighlander
Wednesday, June 10, 2009 @ 12:56:14 PM
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The PSP Go! does away with the UMD drive, but replaces it with 16GB of flash. Right now a 16GB MemoryStick retails at best for about $70. So, is patcher suggesting that a UMD drive costs more than $70? In which case a PSP with a UMD drive is pretty much a bargain.
PSP Go! has a new motherboard, new screen, new storage, it includes BlueTooth, and has the new case, including the slide opening. It's positioned to compete against other portable media devices, such as the various Apple products. The price point that Sony has selected reflects all of these things, and I highly doubt that it will retail the $250 price for much time past the start of 2010.
What really irks me about Patcher and a bunch of the folks commenting here is that all of you are ignoring several things and focusing on the price alone. Look at the competing devices. A 16GB iPod Touch at Amazon is $220 right now. That right there is the kind of device that the PSP Go! is in competition with. Unlike the Touch, the PSP Go has the sliding screen, and full gaming controls as well as a strong game library. It's primarily a gaming device with media features that match all that the Touch offers - in other words it offers significantly more than the Touch does, for a similar price.
Since the PSP-3000 will continue to be sold, and does not come with 16GB of Flash memory, Sony could hardly have justified bringing the new model in at the same price as the PSP-3000, it would make the 3000 very difficult to sell, plus the new model clearly has more to it than the 3000 does - justifying a higher price. If you buy a PSP-3000 and a 16GB memory stick, you won't get change from $250 right now, and you still won't have all the features that the PSP Go! offers, nor the enhanced portability of the smaller device.
I understand that everyone always wants more for less, but let's step back for once and have a little realism. Folks making Tier 1 consumer electronics have to sell their devices at a price that is tolerable for their economics. If you want a well designed, well built device, you have to pay for it. Apple's laptop computers are uniformly expensive compared to generic PC equivalents. Should apple drop their price to compete with SysteMax barbones laptops? Of course not.
Good grief, this is the same mentality that says a console that sells for $499 and costs well over $800 to build is over priced and a bad deal. People need to understand not only the value of the things they buy, but their cost, and analysts like Patcher really have to get out more, because it appears that he's suffering the dementia brought on by cabin fever.
NoMoreWar
Wednesday, June 10, 2009 @ 1:24:07 PM
Doosharm
Wednesday, June 10, 2009 @ 1:27:02 PM
IonHawk
Wednesday, June 10, 2009 @ 4:16:05 PM
I hope it sells well for Sony's sake, but I certainly won't be buying one.
TheHighlander
Wednesday, June 10, 2009 @ 5:13:09 PM
The important thing for Sony is to differentiate the PSP-Go! from the PSP-3000. I would hope that the PSP Go! is sold next to the other portable media players like the Touch in stores. While the more gaming oriented PSP-3000 can sit in the video-game cabinets.
IonHawk
Wednesday, June 10, 2009 @ 5:19:35 PM
The second thing you said I completely agree, they need to separate it from the PSP-3000 and market it differently, but in the past few years Sony has been strange with it's marketing - LBP and Killzone are prime examples - I saw the first ad of Killzone 2 a full 3 weeks after the game was released - by then whoever really wanted the game would have bought it already. Hope they do much better with the marketing this year.
NoMoreWar
Thursday, June 11, 2009 @ 11:48:09 AM
artson1966
Wednesday, June 10, 2009 @ 1:29:29 PM
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Reccaman18
Wednesday, June 10, 2009 @ 2:10:55 PM
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TheHighlander
Wednesday, June 10, 2009 @ 2:29:15 PM
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However if I were pricing a PSP right now and looking to buy one with at least 8GB of memory, and I wasn't concerned with a back catalog of games on UMD, then I would definitely consider a PSP Go!. For a start I don't have to purchase a 16GB MemoryStick, and the thing will fit in a pocket with ease.
TheHighlander
Wednesday, June 10, 2009 @ 2:29:17 PM
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However if I were pricing a PSP right now and looking to buy one with at least 8GB of memory, and I wasn't concerned with a back catalog of games on UMD, then I would definitely consider a PSP Go!. For a start I don't have to purchase a 16GB MemoryStick, and the thing will fit in a pocket with ease.
TheHighlander
Wednesday, June 10, 2009 @ 2:50:17 PM
Masterofallz
Wednesday, June 10, 2009 @ 3:02:37 PM
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coverton341
Wednesday, June 10, 2009 @ 3:26:15 PM
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shadowpal2
Wednesday, June 10, 2009 @ 3:29:09 PM
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Wage SLAVES
Wednesday, June 10, 2009 @ 4:44:38 PM
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Esco_san
Wednesday, June 10, 2009 @ 6:33:25 PM
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NonProphet
Wednesday, June 10, 2009 @ 6:35:23 PM
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Serakek
Wednesday, June 10, 2009 @ 6:55:18 PM
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fluffer nutter
Thursday, June 11, 2009 @ 1:35:03 PM
Morsecodeishard
Thursday, June 11, 2009 @ 10:31:30 AM
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fluffer nutter
Thursday, June 11, 2009 @ 1:40:33 PM
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I wasn't trying to derail this thread but you gotta be thankful that gaming hasn't skyrocketed like everything else has in the last 20+ years.

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Kai200X
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Wednesday, June 10, 2009 @ 10:49:06 AM