Analyst: NGP Can't Be Over $400
The price tag of the Next Generation Portable will continue to be a hot topic of conversation, likely even after the cost to consumers has been announced.
Earlier, Electronic Entertainment Design and Research (EEDAR) analyst Jesse Divnich was quoted as saying the unit could fall into the $299 - $349 range, which may sound pricey, but perhaps surprisingly affordable considering the level of technology. But we wanted more information from the analyst concerning Sony's flashy new portable device, and we asked Divnich if there might be a limit; i.e., we asked him to finish this sentence: "The NGP absolutely can't cost more than 'blank' when it launches." It's an important question.
"Anything above $400 would certainly be out of the price range of most gamers, even the early adopters."
That sounds about right, and you may notice he used the term "gamers." We just recently asked if the NGP would appeal more to hardcore gamers or gadget lovers, but according to Divnich, the answer is simple- "First and foremost, the NGP will be a gaming machine. Gaming will be the NGP's primary function." Well, despite all the other functions, we've always said Sony is all about the games.
For more from what Divnich had to say about the NGP, stay tuned to PSXE.
Tags: ngp, next generation portable, eedar, jesse divnich
1/28/2011 10:27:56 AM Ben Dutka
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Comments (59 posts)
godsman
Friday, January 28, 2011 @ 11:03:32 AM
I'm not surprised to see Sony not even try to compete in pricing with the 3DS. It could range $299 to $349.
Bonampak
Friday, January 28, 2011 @ 11:41:32 AM
I wouldn't dismiss the type of consumer the DS line of handhelds gets. I'm willing to bet that Sony would love to have them. 8 years old or not.
That consumer consistently support the DS through every edition/revision. And that's why it's the market leader in almost every market.
It would be a mistake by Sony's part to simply target the 'otaku'/core gamer of a certain age. That simply has not worked wit their past and current systems. Sony knows that they need to BRANCH OUT and reach more mainstream gamers.
And that's exactly what they need to do with the NGP. Considering that at present, most popular handheld/portable gadgets are popular because CASUALS love' em. Not just the teen/young adult demographic.
Swim_Irr
Friday, January 28, 2011 @ 12:55:07 PM
I know CoD doesn't get a lot of love from the community here at PSXE, but it'd be very hard to deny what a proper CoD advertisement could do for NGP sales. Then once the NGP is in the hands of the consumers, let the games roll. Devs will have an established user-base of potential buyers. And that should be reason enough to produce great games for the NGP.
godsman
Friday, January 28, 2011 @ 1:20:45 PM
Highlander
Friday, January 28, 2011 @ 1:44:44 PM
STAY3R
Friday, January 28, 2011 @ 1:51:27 PM
iwillbetheone
Friday, January 28, 2011 @ 8:48:04 PM
THe DS doesn't exactly target only the 8 year olds wanting to watch 3D movies. It also has some serious AAA titles scheduled for it like Metal Gear Solid, Ninja Gaiden, Resident Evil, Assassin's Creed, Final Fantasy, Splinter Cell: Chaos Theory, etc. The possibility to play such awesome games in 3D should itself lure many adult gamers, who can't afford a 3D TV. I think Sony will have a hard time catching up with the 3DS if it doesn't price the NGP well.
Fane1024
Saturday, January 29, 2011 @ 2:03:02 AM
STAY3R
Saturday, January 29, 2011 @ 5:21:37 AM
Fane1024
Saturday, January 29, 2011 @ 3:29:18 PM
Until the DS Lite was released, it looked like the PSP might actually sell more units than the DS.
In other words, I don't think that launching at a higher price point than the PS2 actually hurt the PSP at all.
Hardware sales of the PSP have been pretty strong; software sales, not so much.
Last edited by Fane1024 on 1/29/2011 3:30:35 PM
godsman
Friday, January 28, 2011 @ 10:58:26 AM
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As the gamer inside of me. This is for hardcore gaming, I'll be buying all these expensive $40-$45 cartridges. I'm not jumping in unless it's $200 - $249.
Nlayer
Friday, January 28, 2011 @ 3:47:26 PM
Looking Glass
Friday, January 28, 2011 @ 11:01:53 AM
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But of course they are most likely going to have it two ways. It has been confirmed that the NGP is going to have two SKUs. One with 3G and one without 3G. One is most likely going to be cheaper than the other.
Consumer choice is always a plus.
Last edited by Looking Glass on 1/28/2011 11:03:43 AM
SmokeyPSD
Friday, January 28, 2011 @ 11:07:20 AM
Looking Glass
Friday, January 28, 2011 @ 11:12:30 AM
SmokeyPSD
Friday, January 28, 2011 @ 11:15:41 AM
Simcoe
Friday, January 28, 2011 @ 12:24:28 PM
telly
Friday, January 28, 2011 @ 11:04:27 AM
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But $400? Or even MORE? That's a serious price commitment for a portable system. I like my PSP a lot, but honestly, months go by when it sits in its case on the shelf. I'm not a huge portable gamer. Then again, this thing looks like it's just going to be so bloody FUN to mess around with -- the touch screen! dual analog sticks! PS3 caliber graphics IN YOUR HANDS! -- that maybe this would change my habits.
I'm not going to declare this a Day One purchase until I see the price -- and, for that matter, the launch date. But Sony, you have captured my imagination AGAIN. Well done :)
SmokeyPSD
Friday, January 28, 2011 @ 11:08:42 AM
telly
Friday, January 28, 2011 @ 11:31:39 AM
godsman
Friday, January 28, 2011 @ 11:14:46 AM
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I have read somewhere that Ipods make a profit of 40-60% with each sold. For sony, I think the pricing comes down to, do they want to make a little profit? or a lot of money from the beginning.
Last edited by godsman on 1/28/2011 11:16:52 AM
DemonNeno
Friday, January 28, 2011 @ 3:09:24 PM
While I wish I could say Sony will oust Nintendo in sales, I doubt that'll happen. Many adults will pass on the ngp until it fits their budgets whereas the less responsible cult of nintendo will nag their parents for an 3ds.
This device is packed with everything that'll make you flabbergasted! It's going to be an amazing system to own, especially if you're too busy for ps3 game time. I can't believe how powerful it is for its size... It'll only get better with time, too..
The second I looked at this unit, it screamed hardcore gamer to me. Sure, techies may be interested in what it can do, but that's quickly overshadowed by how it'll perform with high def games...
Temjin001
Friday, January 28, 2011 @ 11:18:10 AM
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Last edited by Temjin001 on 1/28/2011 11:18:25 AM
godsman
Friday, January 28, 2011 @ 11:27:51 AM
Bonampak
Friday, January 28, 2011 @ 11:31:48 AM
If Sony takes that route with the NGP, then developing games for it could be quite expensive. If these games are going to have all the bells and whistles of a PS3 game, that is.
The thing about portable games, is that they need to be affordable for the devs and the consumer.
TheAgingHipster
Friday, January 28, 2011 @ 11:20:49 AM
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Looking Glass
Friday, January 28, 2011 @ 11:31:22 AM
godsman
Friday, January 28, 2011 @ 11:34:08 AM
Looking Glass
Friday, January 28, 2011 @ 11:45:29 AM
Then our esteemed comrade Ben Dutka mentioned that Sony sells everything at a loss initially.
Needless to say I think it's quite safe to assume that Sony will be selling the NGP at a loss initially. Which of course is good news as far as the price is concerned.
Last edited by Looking Glass on 1/28/2011 11:46:07 AM
TheAgingHipster
Friday, January 28, 2011 @ 12:54:11 PM
Not to mention that, with so many promising games and cool pieces of tech coming out this year, the cheaper it is, the better for me. :)
godsman
Friday, January 28, 2011 @ 1:23:14 PM
sha4dowknight05
Friday, January 28, 2011 @ 11:25:24 AM
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Bonampak
Friday, January 28, 2011 @ 11:34:28 AM
So the price the NGP ends up getting, will probably be no more than the price of the best iPhone/iPad you can get on the market. The one with the best features.
Last edited by Bonampak on 1/28/2011 11:35:34 AM
Bonampak
Friday, January 28, 2011 @ 12:12:11 PM
They know that Nintendo will price their hardware as high as possible INITIALLY in order to make a profit on the early adopters. Those crazy Nintendo fanboys that dress-up and get in line.
And after the 3DS launch window closes, Sony must be aware that Nintendo will probably consider dropping the price of the 3DS. To prepare themselves for the eventual NGP launch.
So this price issue will probably not be resolved in a while.
big6
Friday, January 28, 2011 @ 12:36:14 PM
If the 3DS gets a good reception at, say, $300 and they are able to move lots (on hype and fanboys), then they might be able to garner a similar response on their launch of the NGP. (and price it $50-100 more than whatever the 3DS launches at)
Highlander
Friday, January 28, 2011 @ 1:46:29 PM
Bonampak
Friday, January 28, 2011 @ 3:07:52 PM
If you're talking about lowering the price... You're right. Nintendo didn't lower the price of the Wii. But only because the console had been in constant demand. With such a demand, Nintendo had little reason to sell it for less.
This will only apply to the 3DS if it catches on like the Wii did. If it takes off and sales like crazy.
And if that happens, sure, you can forget about Nintendo even looking back at their competition.
However, if the 3DS price tag scares the DS traditional consumer and the system under performs, then they will lower the price of the handheld. I don't think they can afford to do anything else at that point.
Last edited by Bonampak on 1/28/2011 3:13:38 PM
Hezzron
Friday, January 28, 2011 @ 12:30:44 PM
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Price is very important. My guess is anything over $300 is going to be tough for the masses to accept.
Also important is what comes after in the way of games. So far I've seen a 3 year old PS3 game and Lost Planet 2. It's nice that it can run those, but it's going to need exclusively unique games to differentiate itself.
White_Mocha
Friday, January 28, 2011 @ 4:47:10 PM
Alienange
Friday, January 28, 2011 @ 5:29:27 PM
Highlander
Friday, January 28, 2011 @ 12:44:46 PM
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As for the actual cost of the unit. I can't find costs for the chips or test boards anywhere. the closest I could find is an older Texas Instruments board with a single core ARM and GPU, the dev board for that runs $149.99. I also found a price on a Tegra2 development system, they run to about $400. Of course these are using pre-production engineering samples that are in short supply and cost a bomb. So production prices are likely to be lower.
On the one hand the price needs to be tolerable, especially if the consumer also has to find a 3G operator them self. That's why I' betting on it being no more than $299.99. But if 3G access is rolled into the price, it could be more. On the other hand, the actual build cost of the unit depends more on the cost of the motherboard and CPU/GPU combination than anything else. Even at launch the PS3's CellBE which was extremely difficult to make was running below $200. Although mobile processors are large, and a quad core beast is no exception, they are in a very cost conscious market. I can't see the CPU/GPU combination in the NGP/PSP costing more than a CellBE did back in 2006. If Sony was willing to take anything up to a 33% loss on the sales of the first wave of units, I think the price will be at $299.99 or less. That would allow a build cost of about $400 and only mean a 25% loss margin on the units sold. Sony might be able to compensate with data rates, and certainly game royalties will figure in to it as well. As volume ramps and production matures, the costs should drop dramatically. So Sony should have to endure a loss making device for long.
Of course, that's all 24 karat pure speculation, and in 10 months we'll know the truth.
godsman
Friday, January 28, 2011 @ 1:27:55 PM
DemonNeno
Friday, January 28, 2011 @ 5:21:34 PM
I only make mention of at&t because of sony ericsson' s relationship with them..
DjEezzy
Friday, January 28, 2011 @ 1:15:06 PM
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Amazingskillz
Friday, January 28, 2011 @ 1:43:06 PM
Reply
WorldEndsWithMe
Friday, January 28, 2011 @ 3:25:02 PM
Reply
kraygen
Friday, January 28, 2011 @ 5:27:50 PM
WorldEndsWithMe
Friday, January 28, 2011 @ 5:41:44 PM
A2K78
Friday, January 28, 2011 @ 5:10:50 PM
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With that mind there is no way realistically that Sony will turn a profit or break even on a sub $400-500 price as we've seen this before with the PS3, a console they are still losing money on.
Alienange
Friday, January 28, 2011 @ 5:34:31 PM
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The PSP2 on the other hand sure sounds good, but which devs will stand up and actually put development money into making these games that the PSP2 can apparently run? Did any devs make a fortune putting out PSP games? I'd imagine they're more than a little nervous. Therefore, gamers will be intrigued by the PSP2, but will they shell out over $300 for a system that has a fraction of the games a $250 system has?
I sure hope Sony thought long and hard about what that price will be before announcing it.
Looking Glass
Friday, January 28, 2011 @ 8:27:32 PM
Alienange
Friday, January 28, 2011 @ 9:03:05 PM
Looking Glass
Friday, January 28, 2011 @ 10:29:33 PM
Last edited by Looking Glass on 1/28/2011 10:36:06 PM
A2K78
Friday, January 28, 2011 @ 6:00:33 PM
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It is going to be a must that gamers accept a high price point because in the end Sony just cannot afford to release a product and continually sell it a loss as it would ruin them. Look at the PS3 which is still unprofitable and you'll know what I mean.
___________
Saturday, January 29, 2011 @ 12:42:07 AM
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no freaking way in hell people are paying the same price as a 360 for this thing!
i hope sony fix their AU pricing issues too, last time i checked 300 USD is a long, long, looooooooooooooooooooong way away from 500 AUD!
if anything it should be cheaper here!
we use the same power outputs, allot of formats as JP where its made so why is the country that requires all the changes getting it cheaper!?
they require more so they pay less?
WTF?
whoever thought up that logic deserves the Nobel prize!!!!!!!!!!!!

NGP









Temjin001
Reply
Friday, January 28, 2011 @ 10:55:19 AM
I actually wouldn't be surprised if it's offered as high as $349 or $399.