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  1. #1
    Forum Moderator PS3 News's Avatar
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    Analyst States Sony is Ripping Off Consumers with PSP Go

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    Here we go again.. Wedbush Morgan analyst Michael Pachter stated in a recent episode of [Register or Login to view links] that Sony's newly announced PSP Go console is priced too high.

    To quote: Pachter matter of factly states, "$249 is too much. Period." He goes on to say that while the handheld is priced to compete with Apple's $229 8GB iPod Touch, it doesn't deliver the iTunes App Store or downloadable music from iTunes (as conveniently, at least, as the iPod Touch).

    Furthermore, he posits the $250 price of the PSP Go is vastly overinflated considering its contents, claiming it costs Sony less to build and ship the PSP Go than the PSP-3000 model, "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?"

    When Keighley presses Pachter as to whether Sony is "ripping off" the consumer or not, he answers, "They're rippin' off the consumer ... they're making a lot more money on the PSP Go than the PSP-3000."


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  2. #2
    Contributor Nairb's Avatar
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    249 bucks is a bit over priced. it does have 16 GB of internal memory.

    psp 3000 does not. If you were to purchase 2 sticks of 8 GB memory it would run you 50 bucks. if you multiply that by 2 you have $100.

    So as it seems, you are paying for the memory.

  3. #3
    Contributor Shrink's Avatar
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    Indeed

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    Indeed that is way too much.
    When I heard the price I thought that might be with a bundled download-voucher or something. And the maths skills of Sony's are even more ridiculous. $249 don't equal 249€.

    I really don't think getting rid of UMD is worth over $100.
    Pricing is really a big problem Sony is facing all the time. Also that there was no price cut for the PS3 - that's annoying.

  4. #4
    Banned User y2kkingboy's Avatar
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    I agree..

    Sony is charging the developers with a hefty amount for their DLCs and the consumer with their products, they are getting more greedy as we speak.

    it's like they are challenging us to change sides to other consoles. and they are siding all the best exclusives to theirs

  5. #5
    Contributor captainboo's Avatar
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    overprice ..really

    Sony has always been about quality.. and hence the price.

    Sorry but I would pay a bit more and have a reliable product then buy something cheaper and have it break again and again and again. *hint* *hint*

    But yes I think the PSP GO is a bit overpriced. It would be nice if it had same price point of current PSP and reduce the 3000 model to even cheaper price.

    But for those who think it's high..no one is forcing you to buy it. You can wait for next price drop.

  6. #6
    Contributor Cascade's Avatar
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    Firstly, lets all sloooooow down and realise the FACT that No UK price has been given yet.

    However, Sony are a compnay that has thrived on repuation and image, and part of offering and perpetuating this image is by charging top-whack for their products as a way of saying "you have to pay for the experience." In response to the posts above, I believe that a reliable product could be made much cheaper.

    If Sony truly wanted to be mass market, and compete with DSi and Apple they would drop the price knowing that a higher installed user base that readily buys software for the thing to run will make them more money in the long run. They are giving out mixed messages. The 16GB of memory will cost them naff all to make. The Bluetooth will cost very little. R+D costs might have cost a little bit, but we have to remember that its based on 5 year old PSP 1000 tech and even older PS2 tech,and by now the chips will be so small that they must cost chips to make. It doesnt have touch screen. PSN doesnt have movies or music yet (in UK). It doesnt have the content of apple stores, who it seems they might be trying to compete with.

    I reckon a 180 price tag is the most they should go for, given that the original PSP 1000 cost this much I beleive, which was being sold in an economic depression.

    In a credit crunch, people will think again about buying such luxury goods, even though Sony may tempt their pyschology with the offer of "luxurious treats to soothe and excite".

    Personally I really like the look of PSP Go, its media capabilities and size make it a good contender, and playing GT on it and LBP is gunna be too exciting, but for gods sake SONY, dont go in with a high price point, and if you do, bundle it with PSN vouchers.

    Do not repeat previous mistakes SONY, your consumers have been very forgiving in the last 5 years dont you think? In rhetoric, I certainly do, even as a loyal PS fan.

  7. #7
    Contributor evinh0's Avatar
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    its overpriced, but i think in a few months the price will be cut or we will have good promotions on amazon or something, I dont have a PSP because i think its too large, but I am thinking of getting a PSP Go because of its size.

  8. #8
    Contributor JeffJ's Avatar
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    Quote Originally Posted by captainboo View Post
    Sony has always been about quality.. and hence the price.

    Sorry but I would pay a bit more and have a reliable product then buy something cheaper and have it break again and again and again. *hint* *hint*

    But yes I think the PSP GO is a bit overpriced. It would be nice if it had same price point of current PSP and reduce the 3000 model to even cheaper price.

    But for those who think it's high..no one is forcing you to buy it. You can wait for next price drop.
    there is a difference between a device costing more to produce for quality, and the illusion you seem to be suffering from that a device that costs xxx amount to make then the consumer is charges xxxx amount for it. a price inflation does not deem a product to be higher quality then it is. if a device costs $100 to make and the consumer is charged $300 that does not mean its a better built device it always is what it is and in that case the consumer would be getting screwed with a 200% profit margin by the manufacturer, for something thats only physically worth $100.

  9. #9
    Senior Member ZBlacktt's Avatar
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    Just like everything brand new in electronics it comes with a huge mark up. Then, over time we see it all drop in price. Just like Plasma tv's, PS3's, car stereo's, home audio, dig camera's, I-pods, so on and so on... This new device will do the very same thing.

  10. #10
    Contributor Rocky5's Avatar
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    You pay for the manufactures name on the product the higher up they are the more you are charge as peeps think its great when really it is but its no where as great as its hyped up to be like Microsoft, Sony, Nintendo and APPLE they all do it.

    i mean its $499 for an new iPhone that is just madness here in the UK that's nearly 500 a months standard wage its ridiculous.

 

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