EB Games Australia to Boycott PSPgo Too?

[John Funk]

EB Games Australia to Boycott PSPgo Too?

Adding to the recent hubbub over retailers' frustration with Sony's PSPgo, the Australian branch of EB Games will reportedly be refusing to stock the digital-download-only handheld when it launches next week.

Another week closer to the October 1st launch of Sony's PSPgo, and some more bad news for the hardware giant. Following the announcement last week that major Dutch specialty retailer Nedgame Kotaku Australia [http://www.escapistmagazine.com/news/view/94745-Biggest-Dutch-Retailer-Rejects-PSPgo] indicates that EB Games' branch Down Under will not be stocking the PSPgo at all:

[blockquote]We've heard that EB Games is refusing to stock the PSPgo in Australia.

If you go the EB website you won't find any mention of the handheld, despite its launch date being next week. If you call your local EB store-and we have spoken to several Sydney stores in the last 24 hours-you'll find the PSPgo is not in their system. We even spoke to one rival retailer who urged us to preorder the PSPgo from his store because "EB aren't stocking it."

Yesterday we contacted EB's head office to verify the rumours. We were told EB would not be commenting on the PSPgo.[/blockquote]

As before, it's not hard to see why retailers are frustrated with the PSPgo. Retail margins on hardware are often very slim - in the neighborhood of a few dollars - and most stores make the vast majority of their profits on game sales, whether new or used. The PSPgo does not use physical media, instead selling games solely via digital download through Sony's own store. In essence, retailers would be taking up valuable shelf space for a few dollars' profit on hardware that would literally never bring the user back into the store to buy games.

On the other hand, the secondhand game market has been a growing thorn in the side of publishers for some time now, because they see used sales as essentially lost sales - they get none of the profit. Since the PSPgo's digital distribution service effectively eliminates any secondhand market (short of selling the handheld itself), it wouldn't be surprising to see publishers looking to board the gravy train even at the risk of vexing brick-and-mortar retailers.

EB Games may be the biggest name on the list to shun the PSPgo so far (and this is Australia, so I guess we're learning it's not just a European thing) but Escapists on the bottom of the world who are looking to snag the PSPgo still have some options. EB Games' biggest Australian competitors - GAME and JB Hi-Fi - will both be stocking the handheld when it hits stores at the end of next week.

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[Sparrow]

Awww. I'm really starting to feel sorry for Sony. Everyone is giving them a hard time, aren't they?

 

[DrunkWithPower]

Hmm, I'm suprised the government didn't already ban it.... they do everything else.

 

[UltimatheChosen]

I can't say I blame them. I'm sure the PSPgo will be a nice handheld, but you can't fault EB Games for not wanting to sell something that won't bring them any money.

 

[shadowstriker86]

lol pspgo = epic fail

 

[Therumancer]

Everyone SHOULD boycott this thing, it does not serve our best interests as consumers as I've said before. Any kind of totally online system for games and game distribution takes away our right to a "disc in hand", basically having some "property" associated with it, along with the right to say re-install the game 10 years later without having to worry if the service you DLed from is still up or whatever. It's also not like the games industry ever lowered their prices due to "cutting out the packaging and shipping" you pay the same bloody thing for a digitally distributed game as you do for a packaged one. It's just more profit for them.

I see why Sony wants it, and it DOES benefit them. Digital Distribution is great for the industry on a ton of levels. It however carries absolutly NO benefits for consumers, and the PSPgo is pretty much the current face of that trend along with the DSi (albeit to a lesser extent).

I do not support Australia's censorship policies, but I support them here and think the USA should get involved as well to be brutally honest.

Also keep in mind that EB does a huge business based on game trade ins. Why on earth should they support a product that exists to hurt their business? It's like a conveinence store clerk handing out free guns with a "please rob me" sign out front.

I rarely sell games (I have a pretty big collection as I am something of a collector) but the abillity to sell the game or trade it in is one of my bloody rights, and one I do not feel like giving up. While EB is concerned about their bottom line, it happens to coincide with what benefits me as well.

See, if the gaming industry wants me to support this whole digital distribution type stuff, then they are going to have to do it in a fashion that benefits me in some way. I recommend all gamers think this way.

Right now to get me to support them they would hve to do things like SUBSTANTIALLY lower prices, and then willingly introduce legislation into the goverments where they sell on their own to prevent themselves from raising their prices other than the minimum needed to keep up with gradual inflation. Bssically a set limit on their own profits (which I doubt they would do).

The reason for such legislation would of course be to avoid the "Wal*Mart" stategy. That being where they lower the prices on everything to ridiculous amounts to drive all the local businesses out of competition and then raise the prices back up. Left to their own devices the games industry might lower prices to get people to DL games but will do so only until they no longer had to compete with a physical game market and they had everyone by the wrinklies. Thus I'd only trust it *IF* they were to find a way to prevent themselves from doing exactly that other than some half arsed "promise".

The bottom line is, just don't support products like this. Laugh at them. Treat anyone who supports them with scorn. Bully kids at school who have a PSPgo or DSi. It's actually a pretty big issue as far as gaming goes, and it needs grassroots support. This is one of the situations where a gamer boycott is needed, and it's about something much bigger than what gaming company slotted you off with some bit of content (or lack there of).

 

[Chipperz]

Aww Sony just can't get a break, can they? Maybe when a decent number of stores refuse to stock something that screws them completely, Sony will go back, rethink it's business model and come up with the ultimate console/handheld hybrid with perfect in-built motion controls that seem so seamless noone complains about it and an opening library that's good at a decent price because they stick with Blu-Ray, or maybe even go back to DVD?

Or they'll learn nothing from this exercise and lose out even more.

 

[robinkom]

Having just bought a new PSP 3000 to replace my worn and weathered 1000, I think my stance on the handheld is clear. I'll never buy a PSPGo. I like my UMD games too much.

I totally agree with EB games. The PSPGo will not be a hot enough item to justify the stocking of the item. It's a bit early to fully support a piece of gaming hardware solely with digital content and nothing else. Could be they were looking for reasons to cut off UMD production sooner since all of their licensees abandoned it so quickly.

It's sort of comparable to how there'll always be a market for CDs regardless of the growth of digital music downloads. Some people just need to have a physical object to justify their purchase.

 

[TsunamiWombat]

I can't say I blame them. I'm sure the PSPgo will be a nice handheld, but you can't fault EB Games for not wanting to sell something that won't bring them any money.

The CONSOLE makes them money. Selling PSN Point cards or whatever makes them money. Refusing to sell the console just because they can't sell used games for it is a strong arming scam to get their way. They are a retailer, they have no business making decisions about the product, their job is to SELL it.

 

[GamingAwesome1]

I'm not buying the PSPGo nor am I Austrailian or Dutch. So I honestly don't care.

Sony keep getting screwed by many a retailers. It's easy to see why, mind you.

 

[robinkom]

I can't say I blame them. I'm sure the PSPgo will be a nice handheld, but you can't fault EB Games for not wanting to sell something that won't bring them any money.

The CONSOLE makes them money. Selling PSN Point cards or whatever makes them money. Refusing to sell the console just because they can't sell used games for it is a strong arming scam to get their way. They are a retailer, they have no business making decisions about the product, their job is to SELL it.

It's strong arming on both ends. Sony cuts out the necessity of UMD's and the UMD drive from the PSP. Automatic profit right there. Sony wants you to buy point cards to purchase games for the Go, more profit for them with nothing going to any retailers. You see how this hurts EB Games' bottom line?

The fact of the matter is it's one company forcing their new business model on the consumer that circumstantially also hurts a major retailer. So EB Games essentially let out a big "Fuck you, Sony!" and refused to carry it. For something that will do little in the way of make me a lot of money and take up valuable shelf space, I'd refuse to sell it too. Why blindly sell something that will not benefit you in any substantial way in the long run? Retailers are companies too.

 

[Terramax]

One less store selling it basically means less money to them and more to other retailers.

I don't get it though. Currys/ Dixons have no problem selling MP3 players, CD players, etc, but not music even though music is becoming more and more downloaded than bought in retail stores. What's so different about selling a video game device that requires you to download the videogames?

Sony keep getting screwed by many a retailers. It's easy to see why, mind you.

I know. Sony are responsible for so many awesome games. Envy and jealousy are powerful forces.

Everyone SHOULD boycott this thing, it does not serve our best interests as consumers as I've said before.

Being able to buy the game as a download at full price is better than not being able to buy the game at all.

I don't know where you are at, but here in the UK certain stores have stopped selling PSP games because they aren't selling as well as DS games. So Sony AND consumers of that system suffer sales simply because retailers don't want to sell their product.

So Sony come up with the solution to sell their products online because everyone else turned their back and suddenly people like you have a problem with that? Give me a break.

Yes, it's more money to Sony, but if a game is worth £30, then there's nothing wrong with buying it for £30.

 

[Ciarang]

God damn it, why is everyone boycotting everyone else nowadays ?

 

[UltimatheChosen]

I can't say I blame them. I'm sure the PSPgo will be a nice handheld, but you can't fault EB Games for not wanting to sell something that won't bring them any money.

The CONSOLE makes them money. Selling PSN Point cards or whatever makes them money. Refusing to sell the console just because they can't sell used games for it is a strong arming scam to get their way. They are a retailer, they have no business making decisions about the product, their job is to SELL it.

As was stated in the article, they only make a tiny profit on each console sold, and you're not going to be selling a $250 item in large volumes to make up for the small margin.

And as far as the cards go... if they're anything like Microsoft's cards, I doubt they make much profit on those, either. Microsoft point cards cost EXACTLY as much as the points would when buying them directly from Xbox Live. I'm assuming the shop gets a small cut (with the remainder going directly to Sony), but again, it's probably significantly less than they'd get from regular game sales.

 

[Arehexes]

I can't say I blame them. I'm sure the PSPgo will be a nice handheld, but you can't fault EB Games for not wanting to sell something that won't bring them any money.

The CONSOLE makes them money. Selling PSN Point cards or whatever makes them money. Refusing to sell the console just because they can't sell used games for it is a strong arming scam to get their way. They are a retailer, they have no business making decisions about the product, their job is to SELL it.

A big chunk of profit comes from reselling games they buy used.

 

[Megacherv]

What the fuck do people, and retailers, have against the PSPgo?

 

[ChromeAlchemist]

-snip-

Agreed completely. It's a growing trend that does indeed need to stop, from Microsoft doing it on the 360, to Nintendo with the DSi, and Sony with the Go! and supposed PSN PS2 titles. Removing BC only to do such a thing as resell the games digitally is pretty bad.

I don't know where you are at, but here in the UK certain stores have stopped selling PSP games because they aren't selling as well as DS games. So Sony AND consumers of that system suffer sales simply because retailers don't want to sell their product.

So Sony come up with the solution to sell their products online because everyone else turned their back and suddenly people like you have a problem with that? Give me a break.

Surely you don't believe that...you really think that this was to save the PSP consumers from the deserting retailers? I live in the UK and I've seen plenty of stores that sell PSP games. Same with online retailers.

 

[Lt. Dragunov]

Dang sony's not getting any love anymore.

 

[Clyde]

What the fuck do people, and retailers, have against the PSPgo?

Retailers like to make money by selling games.

 

[Lvl 64 Klutz]

One less store selling it basically means less money to them and more to other retailers.

I don't get it though. Currys/ Dixons have no problem selling MP3 players, CD players, etc, but not music even though music is becoming more and more downloaded than bought in retail stores. What's so different about selling a video game device that requires you to download the videogames?

It's a lot different with a console. Most MP3 players allow you to purchase your music from whatever digital download service you want (Yes, even with an iPod.) But Sony here is saying we buy this console, and then pay a retail price for games that we're buying directly from the company, and that we can ONLY buy directly from them. Thus eliminating competition and raising their profits from wholesale value to retail value while knocking out manufacturing costs.