Sony exec admits "certain premium" associated with PSPgo
By Donald Melanson 
posted Jun 25th 2009 6:02PM
posted Jun 25th 2009 6:02PM
Alright, so this one isn't exactly a shocker, but it is a little bit of honesty that's not often found when it comes to talking about the prices of new gadgets. Speaking with MCV, SCEE President Andrew House denied that R&D costs and retailer mark-ups were the reason behind the PSPgo's high price tag, saying instead that, "when you introduce a new piece of hardware you have the opportunity to say there is a certain premium that is associated with it, and we took that into account." So, in other words, Sony is charging $249 for the PSPgo because it can. Surprised? Now, about that price cut...
[Via Joystiq]
[Via Joystiq]
No one is surprised.
Agreed. Sony sticks a "certain premium" on just about every product they make when they first release it.
why arn't you accrediting joysitq for this news? they heard it first...
Since Sony consoles seem to be playing catch-up to Nintendo, I don't think "because they can" will end up working for them in the long run.
It may turn out that they "couldn't."
The same strategy worked so well for the PS3 too, being the console in distant third.
Wasn't there a comment like 'people would be happy to work another week to afford a ps3' or something like that?
PS3 price is still too high after all this time, twice the price of an X360 here in the UK.
This is a standard business strategy called price skimming. All electronics companies use this.
But Sony is known for being a bunch of douches with regard to pricing... I mean, come on... we all know the stuff's not worth it anyway.
Sony is a japanese company and its the way to do around here. Dell Japan always charge a premium on new items unlike Dell america. It go down after 2-3 months. Apple Japan doesnt even need new items to charge a 300$ premium on everything!
Hmm and I wonder why Japan lags badly in the world happiness ratings o.o.
They can do this because they're Sony. Yeah, they are competing against DS but they're for two completely different crowds. Your little sister isn't buy a PSPGO so she can download games because she has no idea how to do that. It's for a more older and mature crowd. A lot of people are preordering this already.
I wouldn't say the same about the PS3. I think they're either losing money with each PS3 sold or they break even. Either way, they PS3 isn't overpriced and it never has been. 360 and Wii are, the Wii especially.
I wouldn't say it's too expensive if the hardware is good, but I don't think it should cost way more than a PSP Slim. I think the PSP Slim is great, but Sony doesn't have enough software for it. Everything has to be hacked. Such as watching youtube and the browser in the PSP is horrible along with the UMD drive. Still, it's good for watching movies, listening to music and playing games.
Sony really *is* one of the few companies that are associated with higher than normal prices. On average, nearly all Sony consumer products cost quite a bit more than competing products from other companies, be it notebooks, gaming, camcorders, digicams, TVs, whatever. They've been doing it for a long time, but they're losing market share on all fronts, because simply depending on their name to sell stuff just doesn't cut it any more. Consumers are more into value, especially during these economic times. The PSP Go doesn't represent value, and neither does the PS3.
So, the Go has two things against it: looks and price. What's it's selling point? It's new, and the "I want to be first!" crowd will be scrambling for it.
who the hell does this guy think he is...actually, better question. Who does this guy think he works for...apple?
I love PSP graphic but the lack of everything in this design pisses everyone off. Specially the price tag. Was hoping to see $199 but they sucker punch me.
It's a business...just like our government. Get used to it.
I disagree. Vote with your wallet.
You do vote with your wallet!
If government was a business, then the United States would've been bankrupt a long time ago.
Uh Peter I hate to break it to you, but we are in debt by about, oh let's see, a GAZILLION dollars!
Uhh, Canada's national debt is around 475 billion dollars (I'm guessing CAD) while the U.S. national debt sits around 11.3 trillion USD. Now, per person, that makes us just over 13,000 while the U.S. is at 37,000. And btw, the 11.3 trillion isn't including the trillion or so extra debt which will be spent fixing your recession problems.
Having the world's best banking system does help a bit.
@ZenStyle
I'm confused. Are you assuming/know that I'm Canadian and you are as well, or are you an American assuming that I'm an American as well?
And just to explain my first comment, I was just saying that despite Canada's debt, the U.S. has a lot more debt per capita and if they were a business, there is no way on earth that investors would lend them 11.3 trillion USD.
If government was a product, selling it would be illegal. - P. J. O'Rourke
Yeah and no game sharing for the kids.... what a joke, kids share and swap games all the time, with this that all gets lost.
Vote with your wallets.
At least they are being honest about it... I know of a few companies who charge $100 more for a product that has a measly 16 GB extra.
iPod Touch!
A total waste of money but I had to get the 32GB version for 400 bucks for my music =]
And I can just not buy the PSPgo.... because I can.
...not afford it anymore.
You must work hard to afford it.
It will teach you discipline.
And I was so excited in the few weeks between the device's leak and the announcement of its price. Forget this! This has prompted me to wait for the rumored microsoft "xyz" handheld device and its (supposed) nvidia tegra processor. Even an unconfirmed and unknown dream device is better than settling for this now. Way to go Sony. I can only hope that more people chose to ignore you and your serious lack of judgment.
It's not business, it's bullshit. They got a fanbase that will worship any turd that they shat out, so they're going to take advantage of them. It HAS to cost less to make a PSPgo than it does a normal PSP. No drive, less material, and there is no doubt that they are using their ties to get cheap parts. It's like paying 300 dollars for a 1990's cellphone because it has the Apple logo on it.
hahahah iPhone a 1990 phone? if that's the case I can't wait for the 2000 version..
I see what you did there.
1990s cellphone?
Either you're can't afford an iphone, or momma won't sign the contract for you.
Your pick
@ redcard:
And judging from what you wrote, you must be a "redtard".
What kinda lame duck hates on both Sony and Apple?
I'm saying that it would be like Apple trying to sell a cheap phone for more just because their name is on it.
I'm indifferent to Apple. Their products are good, but a little over-priced. *Ignoring the iPhone because, IMO, every cellphone is overpriced.* I can't really complain because I do love the OS, and their stuff seems to be solid, but the price is a little high. Jobs may be a asshat sometimes, but he is a decent asshat.
I just hate Sony. Not the PS3, or PSP, or whatever else they make, just the company. I'm pretty sure they are trying to see inside their own colons. Sony needs a good, swift kick in the ass and an attitude adjustment. Then, maybe then, I'll see them as decent again. I can understand being confident, but they have went from confident to delusional.
loocas, leave the humour to people that are funny
I thought Redtard was pretty funny.
LameDuck, for some reason I was really hoping you were talking about the ROKR E1--yeah, take a minute to remember that little failure. 1990's cell phone--so far off the mark.
Miniaturization does have its costs though. R&D mostly, so it's gonna mean a pretty fast price drop while still having a significant premium.
And in other news the president is Black.
THAT'S RACIST!
LameDuck, the U.S. President is black. I'm sorry, African-American.
I fail to see the racism in the original comment.
Only if you're racist. Also back on topic guys. Making a big deal out of nothing takes a group.
Also, the pope is Catholic.
The president is a man, man.
Forgot my /sarcasm tag. ;p
He's half black, half white, he is GREY!!!
"He's half black, half white, he is GREY!!!"
He's an alien?!?!? o.O
Crap *slaps forehead* That explains the grin that is large enough to swallow you.