Sony: PSP Go Costs More Because of a "Premium"

samsonguy920

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All things being equal, I'll stick with what I can play on my phone for want of portable games. Otherwise paying for anything high def on a tiny screen is just money in a pit to me, not to mention a potential health issue. These days the better value is going for the product which has multiple uses. However if you got the dough, go ahead and spend it on a Go. Keeps Sony going which helps keep other things I like going that Sony owns.
 

Low Key

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I'm glad I never got into the whole handheld gaming thing otherwise I'd be pissed as hell. The iPhone is cheaper and it makes phone calls and gives me directions when I'm driving too.
 

khain13

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I think the thing most people fail to realize about Sony is that they are in business to make money not happy customers (although happy customers = more money in the long run).

This current generation of Sony products is aimed at one thing - making Bluray the dominant media format. The PS3 was nothing more than a trojan horse to get Bluray into more households, this is proven by the dismal games library and general disregard for gamers. The PSP started out as a trojan horse for UMD, when it became clear that UMD could not beat DVD Sony backpedaled and changed the PSP from a "handheld gaming device/media player" to an expensive PS3 accessory. Removing the UMD drive was the next logical step in pushing Bluray, it's not a coincidence that many Bluray movies come with a digital copy that will no doubt be playable on the PSP GO.

The silver lining if you can consider it so, is that Sony has won thier Pyrrhic victory over HD-DVD and can now finally get around to focusing on the PS3 as a gaming console. The PS3 and PSP GO can definately benefit from this change. But will it come soon enough? Nintendo is still the undisputed king of handheld and with the Wii they are beating Sony at the console market as well. Microsoft has maintained a strong focus on games and has actually beaten Sony to expanding into the casual gaming, movie on demand and online distribution sectors of the market. If Sony doesn't regain some kind of focus in a hurry they will be too far behind to ever catch up.
 

Abedeus

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PREMIUM, GOLDEN ANSWER HUNDRED PERCENT!!!

I'll stick to my DS, thank you very much.
 

Playbahnosh

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Onmi said:
Cheeze_Pavilion said:
Playbahnosh said:
Huh. So, basically this is "because we fucking can" model of pricing? Thats nice. No wonder I don't buy Sony stuff anymore...
It's "because this is the price we think the market will bear" model of pricing which...is what everyone does. Including Sony when you could get a PS3 for less than it cost them to make.

Unfortunately, Sony has turned into the worst company ever PR-wise.
Until someone does an estimate on how much a PS3 costs to mke can we all stop referring to price for it. I mean I don't mind but I wanna be absolutly sure.

Speaking of the Go! hands up if you got a PSP. okay all of you that did you are not the target market. The target market is those who do not have PSPs. As for me I suggest if you don't have one you pick up a 3000 or 2000 which they still sell.
I know it's not a new thing, this "because I say so" school of pricing, the "let's rip off everyone as hard as we can, before they realize they've been virtually mugged". Of course, on release day everything costs a lot more than it costs to actually manufacture the stuff, it's the simple process of finding the maximum price the consumer is willing to pay for something, regardless of manufacturing and material costs.

I was working in an assembly firm for an undisclosed company, where we put together mid-end SPARC servers for Fujitsu and Sun. My non-disclosure contract doesn't allow me to say much, but you should've seen the quality of the parts we had to work with. The chassis and other parts all came from [the other side of the globe], and a good percent of them either got damaged en-route or were packaged pre-wrecked. Another good percent broke during assembly, not because the workers were clumsy, but because the parts were of shitty quality. The plastics usually broke or got scratched, the aluminum parts as the chassis bent under the smallest stress, and a good many of the mechanical parts, such as latches and levers to remove modules broke. Not to mention the actual computer components like motherboards, DIMMs or DAT drives. We had the pleasure of filtering out the crap after assembly, and I gotta tell you, nearly half of the servers had somekinda problem during testing. It was a nightmare working with all those defective stuff. I don't really know, but I think at least 20-30% of the parts were defective. The biggest joke is, the price. These are mid-range servers, they have the performance of ten to twenty high-end PCs combined (if I'm not mistaken), and usually used for databases and webservers. The entry level model, that has only the most crucial components installed, costs around $15,000! A fully loaded server with all the top-grade components and extra stuff, that costs around $160,000. Yes, Onehundredandsixtythousand dollars. It's the same machine as the 15K one, the only difference is the top one has more RAM, processors and card slots. It's not ten times the base model.

Judging by the quality and tech level of the materials used, in my estimate it should cost about $4000 to manufacture the top-grade server with everything in it, maybe less, so they essentially working with a 4000% profit margin here.

I'm not saying they shouldn't do it, I'm mean they should rob blind everyone who dares to buys that crap, because they have to turn in more and more profit every fiscal year. I'm saying this is how economy works, everybody knows that, only nobody says is out loud.

Now Sony said it out loud, that the price of everything they sell (and not just them) is 20% material cost, 20% manufacturing, 10% other and 50% bullshit. I wonder how the other companies will react to this...
 

Upturned Walrus

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Jun 15, 2009
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Meh im still going to get this new PSP. PSP's are the only thing i buy from sony but i do like the idea of no UMD's :D
 

Vash108

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I think it's kind of funny. People are shouting for PS3 price drop and Sony knows it, and they come out with a new PSP which is even more expensive. It makes me wonder how much Sony even listens to their customers.
 

SilentScream

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Apr 11, 2009
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I would never buy one of these things. Aside from the price, the digital distribution idea is ridiculous. I'm in the military on my way to Iraq. PLEASE tell me how the hell I'm supposed to get games while I'm over there if it's a matter of digital distribution? Last time, if our internet WORKED, I was lucky to be able to download a 10MB file in an hour. That of course is assuming the download didn't get cut off midway through.

GG Sony, now why don't you just go ahead and leave the market, eh?
 

Filtertip

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Jan 30, 2009
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I don't like the sound of the PSP Go one bit, no UMD so no trade in's playing your old PSP Games and having to buy EVERYTHING from them insteed of your local shop which is proberly faster to walk to and back then it is to download a game online.

I will be sticking with my PSP 1000 for now maybe when i have extra cash to blow i MIGHT get a 2000 or 3000 but i will not be tuching the PSP Go as i see it as everything that is wrong with where the games market is trying to go.
 

GrindBass

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I'm not entirely sure why this is news - its a very commonly used pricing strategy (particularly in technology markets) called price skimming.

Companies always set the prices higher than necessary at the start so that they can recover development costs more quickly since some people will be willing to pay the high price just so they have the newest gadget.

For everyone else, just wait a while until they drop the price, which shouldn't take that long since by their nature the people willing to pay the high price will buy very early and demand will drop quickly.
 

FloodOne

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Apr 29, 2009
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/facepalm

I'm not entirely sure how the hell Sony has been able to stay in business these last three years.

I want a PSP Go, but not that badly... I'll wait until I can buy one on eBay for $100.
 

irrelevantnugget

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Mar 25, 2008
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SomeUnregPunk said:
People buy shiny new things. Cost doesn't factor in for these people. SONY knows that americans,asians,europeans will all buy their new shiny thing. So why should they lower the price if they know that people will buy their shiny new thing?
You're referring to the "innovators' and 'early adopters', ok. These people usually have more cash than the early, late majority and laggards, BUT they tend to also look up info. Sony is being their retard self again by simply stating this. I'm sticking to my trusty ol' PSP-2000. Hacked. (I DO buy games though. After demo'ing them with a dl'ed version)
 

nipsen

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Sep 20, 2008
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thenumberthirteen said:
Commander Breetai said:
What about the 16-gig flash drive ? You know, the one the standard PSP doesn't have?
Memory's cheaper than a UMD drive, fewer parts.
..yes. For example, a cd-rom drive is more expensive than a piece of flashable rom - since the parts don't move around so much. Incidentally, smaller hardware - specially in electronics - means less material, and therefore less production costs. This is indeed the reasoning behind how China will eventually own the US, as they will save a shitload of money on clothes.
 

smithy1234

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Dec 12, 2008
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I'm just going to wait until the price comes down, which is what I think most people will do.
 

PopcornAvenger

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Eric the Orange said:
Mabey it's just my old school sensabilitys(sp) but, damn it, when I own a game I want some kind of physical representation of that game, be it hardware disk or whatever. I guess thats just my reason for not getting a PSP GO.
I agree, but disk-based distribution is going the way of the dinosaur. Frankly, if I was Gamefly, I'd be working hard to go 100% digital, and as fast as I could. That, or get buried by Steam, D2D, etc.

Hopefully in the future they'll send us T-Shirts or something when we make that digital purchase.

As far as the PSP Go, bleah. Portables never appealed; if I want tiny cruddy graphics and eyestrain, I'll dig out my old copy of Ultima.