Will Consumers Pay Up for the PSP Go?

Kris Erickson • May 31, 2009 • Comments (9)

With news and detailed specifications for the PSP Go emerging over the weekend, we now have a much clearer picture of what Sony has planned for its handheld hardware range. The PSP Go, due to be introduced this fall, will differ from previous models by including 16GB of on-board flash memory while dispatching with the UMD drive in favor of digital-only purchases. The standard UMD-equipped model will remain on shelves indefinitely as Sony gauges public interest in this new business model. But will this gamble pay off for Sony, and will consumers rush to embrace the new PSP hardware?

Early public reactions to the new PSP design were mixed. Some gamers who had been waiting for a more complete break from the first-generation PSP were disappointed that the PSP Go lacks a second analog stick or a touch screen. The core hardware such as graphics processor, screen resolution and motherboard, remain unchanged. What the PSP Go actually offers, then, is a new way of purchasing and playing games - the same games that will be available on existing models of the PSP hardware either on UMD or via the Playstation Store.

The smaller size of the PSP Go has also drawn several different complaints. The horizontally-oriented screen still takes up a large proportion of the face of the device, but it has been scaled back to a slightly smaller 3.8" size. This sacrifice to portability could be a negative point to some, who appreciated the extra-large screen on the original PSP. Some commenters are also skeptical about the placement of the slide-out controls, and the analog nub in particular. It seems to be located too close to the center of the device, and might make controlling certain games difficult. However, these are probably minor quibbles that will be settled once we finally get our hands on the device.

The PSP Go in the open position, showing layout of controls.

Another potential barrier to consumer adoption is the expected high price of the handheld. During the leaked Qore video segment, the Sony spokesman said that this hardware revision is intended to be a "premium" product, indicating that it will be more expensive than the current PSP 3000, priced at $169.99 USD. Although the cost of flash memory has come down dramatically in recent years, the inclusion of 16GB of storage memory will definitely impact the retail price of the PSP Go. It is estimated that the on-board storage will initially add a $70-80 premium to the price of the PSP Go, placing it around $239 at retail. Considering existing options like the competing Nintendo DSi and even the older model PSP, Sony could face a difficult challenge convincing first-time buyers that the Go represents the greatest bargain.

Financial analysis firm Sterne Agee echoes our concerns: the current model PSP is already too expensive for many consumers, and in need of a price cut. Introducing a new, more expensive model might appeal to hardcore gamers, but will fail to win wide market acceptance above $200.

Several years ago, the introduction of a new tech gadget, not matter what the price, was met with throngs of early-adopters ready to form a queue to part with their money. Now, with the economic recession firmly hitting home in households across Europe and North America, those heady days are temporarily behind us. At a time when consumers are trying to rein in their spending, releasing a premium version of a product they already own may not be the wisest business move.

Comments

Johnno

- May 31, 2009 1:04 PM

Well the UMD-less internal memory and digital model is what a lot of gamers have been demanding... I'd be surprised if they were surprised that it would cost more... what did they expect??? Everyone seems to be under a delusion that a DD model applied to anything means cheaper costs but as we've seen time and time again, this is NEVER the case and only more inconvenient than physical media except when it comes to portability. Anyway, I expect there'll be several more OS features to this that will make it more appealing and there's the possibility that Sony may drop the price of current PSP-3000s and introduce this at close to the current price of PSP, perhaps a bit more... PSP hardware has been sold at a profit since day 1. And I doubt Sony bothers to compete with the Nintendo DS anymore, it's more interested in competing with Apple and the tech audience there for music and movies who are willing to spend more money on hi tech gadgets. If it delivers a god PSN service for digital games, music and movies then it stands a good chance at competing with the iPod market.

RuddigerPez

- May 31, 2009 3:30 PM

Sorry to go off topic, but financial analysts are idiots. The current PSP is too expensive, but then the same speculators contributed significantly to the recession with your greed?

Consumer electronics aren't going to be cheap, and if you really want something then whether it is $169 like a PSP or $129 like a DS shouldn't matter. If $40 breaks your bank, maybe you have other problems... Oh, and the price won't go up. They put in 16 GB flash memory, but they take out the laser and drive motor from the UMD drive. And that $70 - 80 figure seems based on what a 16 GB USB flash drive runs, there is no way Sony will be paying anywhere near that for what goes in the PSP Go.

I guess to sum up, financial analysts = idiots and the PSP price will be the same as the PSP-3000.

Wolf26pack

- May 31, 2009 6:16 PM

@Johnno

Personally for me I rather stick to the UMD disc model and I am glad that they aren't getting rid of the PSP 3000 when they bring out the PSP GO!!! As many that would like a pure digital model I think there are just as many that would like to keep a physical disc. I only have the PSP 1000 model and I wouldn't upgrade even if my system broke down and if it did I would upgrade to the PSP 3000.

The way I see it Sony is testing the market, which ever system sells more will be the base for the PSP2. Although I know there is know way to stop the pure digital model as soon it will be the only way to get your Movies,Music,Games & Books but there are downsides to it and right now all the companies that are delving into digital downloads are trying all the different methods.

Sony - Ability to Download whatever is purchased as many times as you want and even share with up to 5 friends

Nintendo - Ability to Download whatever is purchased as many times as you want but locked to only "Your Console"

Microsoft - Ability to Download whatever is purchased as many times as you want but locked to only "Your Console" & tons of DRM involved so it is a big hassle to transfer over to new console.

Steam - Combination of No DRM games & DRM enabled games that are to restrictive so you have to re-activate games everytime you want to play it by inputing special codes.

then on the music side of things most sellers of Downloadable music have learned that...

Having no DRM on their music boosts sales.

and finally the reasons why those of us that prefer disc based products...

Physical Disc Games - Were in control of the product, we can play it anytime we want.

Physical Disc Games - Although not indestructible they can and should be allowed to be backed up at anytime so they can be like Digital Downloaded games.

Digital Downloaded Games -Digital Downloaded games be restricted from use at any moment the distributor or developer feel you violated any of their terms.

Digital Downloaded Games - Can & will eventually be removed from the service and that $0.99 - $59.99 investment is gone and unavailable if your system goes haywire and requires you to re-download your games

In the end it is up to each users taste and each have it's upsides & downsides so, as long as we have a choice between the two we will be fine but I still don't want to see the day come when everything is only digital.

Here is a link to a story about one of the problems with Digital Distribution

Link: http://www.techradar.com/news/portable-devices/portable-media/amazon-bars-kindle-user-from-reading-own-e-books-593118

tretle

- May 31, 2009 7:30 PM

@Johnno in my personal opinion anyone that buys this and sends Sony the message its still ok the keep selling us the same console with the same core specs and the same issues like the analog stick over and over again at a high price every time are the greatest idiots you will ever find.
What is the PspGO, well its sony's marketing team realizing that reducing the scale of the thing wont make it look any different in adverts, ala PspGO same old psp1000 in a different shell with an emphasis in selling games directly rather than going through retailers and thus creating larger profit.

Reno

- June 2, 2009 6:40 PM

Not impressed yet.

KNRasengan

- June 17, 2009 12:16 AM

I'm gonna have to sell my current PSP to get the new one. However there are many problems with the diskless system. First of all you got millions of UMD's not being used in the world once everyone get's a Go so more trash. Plus not everyone has super fast internet speeds so downloading games for some people might take a whole night. Sony is pushing for the future like the conversion from analog to digital but I don't think they should right now considering the economy. Plus the high price is a big decsicion. They should offer a core package with just the system, manuals, and charger and then offer a enteratiment package with a Memory stick and some game and video vouchers for PSN.

skillzman

- June 24, 2009 7:47 PM

i agree it is a bit higher maybe it will offer a little bit more this time skillzman out. peace

skillzman

- June 24, 2009 7:56 PM

yeah the psp go is amazing and a bit expensive i think sony should lower the price on both handheld because of recession everyone is not as fortunate as others do like idea about ps3 laptop pretty good hope they put that out. skillzman out peace

J

- September 1, 2009 5:15 PM

I don't think I'll be purchasing the PSPGo, it just doesn't seem all that interesting.

I am perfectly happy with my PSP1000, and the style change with the increased memory space isn't enough for me to purchase this console at that price.

I really don't like the location of that analog stick; although I understand the space constraint, it doesn't seem like the most intuitive place to place the thing...

I was really hoping for PSP2, but it seems like it won't be happening anytime soon, just like Square's constant comments about FF7 Remake.

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