Analyst States Sony is Ripping Off Consumers with PSP Go

Category: PSP & PS Vita News By: PS3 News - (joystiq.com)
Tags: analyst states sony ripping off consumers psp go

206w ago - Here we go again.. Wedbush Morgan analyst Michael Pachter stated in a recent episode of Bonus Round 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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10 Comments - Go to Forum Thread »

#10 - GamerV - 206w ago

Sony always seems to get the heat for its pricing. They tend to try to offer the most amount of tech and memory available at the time yet people don't want to pay for it. The same with the PS3. $199 would be the prefect price point imo, but people always overlook what it offers and the value it gives. Its seems the average consumer just sees that the other psp cost $170 and this cost more. Would consumers just prefer Sony to make this thing with the most cost effective options like $50 with 512mb storage with no memory slot and upgrade it bi-yearly with slightly new features like Nintendo.

#9 - Rocky5 - 206w ago

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.

#8 - ZBlacktt - 206w ago

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.

#7 - JeffJ - 206w ago

Originally Posted by captainboo

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.

#6 - evinh0 - 206w ago

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.