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Pachter says Sony is “ripping off the consumer” with PSP Go price

Wednesday, 10th June 2009 21:35 GMT By Stephany Nunneley

pachter

Loads of things have already been said across the internet about the price point for PSP Go, but Michael Pachter has been virtually silent – sort of.

During a recent taping of Bonus Round with Geoff Keighley, this is what the Wedbush Morgan analyst had to say on the matter:

“$249 is too much, period,” he said. “The [current] $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 to make as the PSP-3000 and they jack the price up $80.

“I’m sorry to say it. I don’t want to get bad fan mail from the Sony fanboys, but… They’re ripping off the consumer until they sell a couple million and if consumers don’t buy it then the price is going to come down… they’re making a lot more money on the PSP Go than the PSP-3000. And the PSP Go helps them because there’s no piracy.”

Watch for yourself.

Thanks, GamePolitics.

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24 Comments

  1. Razor

    Has he factored in the flash memory? That isn’t cheap.

    Either way, I’m getting sick of hearing from him and his “expert” opinions. He should just go away.

    #1 5 years ago
  2. blackdreamhunk

    I don’t know this guy but I like him alot lol. See more proof that big companies milk console gamers.

    #2 5 years ago
  3. Dr.Ghettoblaster

    this guy looks like the devil in disguise

    #3 5 years ago
  4. Shatner

    Given that millions have paid top dollar for what amounts to two gamecubes stuck together with tape or an astonishingly overpriced mobile phone/fashion accessory I’m not sure what’s so wildly different about pointing out that luxury goods are frequently overpriced and expensive.

    Hey, BDH, not that I don’t enjoy your point of view or disagree with the mocking treatment you get by the blindly retaliatory infants around here but, i’m curious, which operating system do you use?

    #4 5 years ago
  5. Johnny Cullen

    Say what you like Pachter, but either way, he’s right.

    #5 5 years ago
  6. satsugai

    Give this man a cake. He tells the truth.

    #6 5 years ago
  7. Seraphemz

    All I know is that I’m getting one. 250 is within my budget.

    Bluetooth so I can tether my mobile phone….sold.

    Just paid 200 for the Pre worth every penny..and so will the Go!

    #7 5 years ago
  8. dirigiblebill

    I would have to agree, really.

    It’ll be interesting to see how Sony markets the Go. From the specs, the only people I can imagine buying it would be those who already own a PSP.

    #8 5 years ago
  9. Cort

    And what did he say when Nintendo announced the price of the Wii?

    #9 5 years ago
  10. Psychotext

    “Has he factored in the flash memory? That isn’t cheap.”

    Didn’t even make it to the third paragraph of the article did you? :P

    #10 5 years ago
  11. Razor

    Can someone explain how piracy is stopped on the Go?

    I don’t understand how that works.

    #11 5 years ago
  12. Razor

    Oh yeah Psyc…

    silly me :P

    I don’t believe him though…flash is pretty expensive.

    #12 5 years ago
  13. Psychotext

    Not as expensive as you might believe:
    http://www.dramexchange.com/#flash

    #13 5 years ago
  14. Dr.Ghettoblaster

    Hey, if the PSPgo brings more quality PSP games to the table then where exactly is the problem? If you don’t like the price, but the older PSP model. Sony already confirmed that UMD’s will continue to be supported.

    #14 5 years ago
  15. anasui

    rofl, and the vg247 community goes apeshit against the usual targets. God forbid they dare to touch anything Sony does

    #15 5 years ago
  16. deftangel

    Sony will be buying flash memory chips in massive bulk, just like Apple would with iPods etc. I would view it as very probably that it’s equal cost to the UMD assembly at absolute worse.

    Even taking into account the redesign and built in profit margin for retailers I think they’re milking this a bit.

    I really wanted one as I’ve never owned my own PSP but the European pricing is even worse :(

    #16 5 years ago
  17. Cort

    http://kotaku.com/5286488/analyst-sonys-249-psp-go-is-too-much

    Pachter once again showing that he engages his mouth before inviting his own brain into the conversation.

    “I don’t think it has anything to do with retail, and truly think that Sony is right to charge what the market will bear,” Pachter said. “The fact is that Sony has been subsidizing the cost of the PS3 since launch, so to say that they are ‘ripping off’ consumers now is not really fair, and if I could retract the statement, I would do so.”

    #17 5 years ago
  18. cachucha

    flash its really cheap and getting cheaper everyday

    #18 5 years ago
  19. hitnrun

    I think you can justify the price if you take the same view as with the PS3: Sony needs money more than market share and is willing to endure mockery and rejection to milk the people who *will* buy one as hard as possible.

    Of course I don’t think the PS3′s situation is that extreme, but the same theory still applies. Sony doesn’t care what you or I think: they need da mufuckin money. Of course that brings up the question of why they spent probably eight digits in R&D creating a new product in the first place.

    #19 5 years ago
  20. JonFE

    Well, Nintendo offers the DSi at a higher price point than the DS without glaring expensive differences, so why can’t Sony do likewise?

    Actually I’m more interested to know how Sony plans to lure existing PSP owners with a games collection on UMD into upgrading.

    Finally Pachter’s point about piracy may not hold much water, as hackers seem pretty interested in the PSP so far with custom firmwares coming on a regular basis and perhaps they will put on a similar show for the PSP Go.

    #20 5 years ago
  21. Blerk

    I thought they were trying to reignite interest in the platform, though? They just spent the last 6 months getting all the developers back on board so they can relaunch the platform and save it from obscurity and then they completely overprice the new hardware? How long before those re-convinced developers give up again?

    #21 5 years ago
  22. Morrius

    Sonylol. True story, the guy in my local indie calls his supplier at Sony every day to tell him to lower their prices. He’s persistent and somewhat mental.

    #22 5 years ago
  23. deftangel

    The only reason Sony are still subsidising the PS3 is because they launched with a overly expensive console and grossly over-estimated the market’s ability to support it. Launching the console at a loss is part of the traditional razor/razor blade model of the console market with the idea to hit profitability as quickly as possible.

    The PSP-Go is a relaunch of an existing console that’s over 4 years old. They wouldn’t have launched the slim PS2 at a loss and if they have to with the PS3 slim that’s purely down to the cirmcumstances above.

    Like Blerk says, they really need to get people to purchase software digitally for this thing on a level like Xbox Live Arcade for it to be successful. The consumers who pick up the new PSP are their best shot at that as re-educating the existing consumers ain’t gonna be easy. Even if they were making a small loss at $199 they’d have been better off going with that I think.

    #23 5 years ago
  24. Rodiard

    PSP Go is a PSP Gouge.

    #24 5 years ago

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