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ShopTo says PSPgo is “almost dead before it arrives”, Pachter disagrees

Thursday, 17th September 2009 16:50 GMT By Stephany Nunneley

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ShopTo boss Igor Cipolletta has told Eurogamer that while his business has no plans to boycott PSPgo like other European retailers, he feels that the handheld is “almost dead before it has arrived”.

“We do have it listed on the site, but we are not concentrating any big marketing behind it,” he said. “Sony has decided to cut publishers and retailers for the software of the PSPgo and deal direct with developers, giving them a 70 per cent margin for any items sold on Sony PSN.

“I have the feeling that as a format it is almost dead before it has arrived, and it relies far too heavily on a customer base that is prepared to pay more for download content than the equivalent disc based product, and I suspect this market will soon dry up based on the technical limitations of the hardware.”

Analyst Michael Pachter has responded to retailers boycotting the system, and thinks that each are being “foolish” and “ridiculous”.

“It’s just silly for a retailer to say that they won’t sell a big ticket gaming device because they can’t sell the games,” he told Eurogamer. “Consumer electronics stores sell refrigerators and not food, everyone sells iPods and not the music for them; this position is just ridiculous.

“I think that it’s foolish for a retailer to be selective about what they carry, unless they truly don’t believe it will sell well. Refusing to carry them subjects them to the risk that Sony will bypass them for Gran Turismo or Uncharted, in which case they lose. To draw a line in the sand is wrong.”

Via GI.biz.

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11 Comments

  1. Madeira

    Refridgerators and ipods have a decent profit margin on them.

    #1 5 years ago
  2. G1GAHURTZ

    Consumer electronics stores sell refrigerators and not food, everyone sells iPods and not the music for them; this position is just ridiculous.

    Hmmm… something of a naive statement from the usually very shrewd Mr Pachter.

    Electronics stores make little to no profit from the appliances they sell. Most of their profits come from extended warranties and things like cables, accessories and other such ‘low priced’ goods with high profit margins.

    Obviously game retailers are more likely to be thinking about second hand sales and this being a first step towards losing the easy money that they’ve grown accustomed to acquiring from the second hand market.

    #2 5 years ago
  3. theevilaires

    PSP GO should be $99 plain and simple. WTF do I need bluetooth on a psp when bluetooth technology is a power hungry battery killer. So yea I think it won’t do well.

    Hope they come up with better features in the PSP2 or PSP 4000 models

    #3 5 years ago
  4. OwningXylophone

    “Consumer electronics stores sell refrigerators and not food”

    Bad analogy… As there is no refrigerator out there that forces you to buy all of your food from one company with no competition to have to worry about pricing battles, whereas all the software for your PSPgo will have to be downloaded from PSN, no choices, no competition.

    #4 5 years ago
  5. Cort

    ^ Bad response. He’s talking from a retailer, not consumer, perspective. Do you buy your milk, eggs and butter from Dixons?

    And G1GA, if retailers can sell warranties for iPods they can sell them for PSPs.

    #5 5 years ago
  6. G1GAHURTZ

    Doesn’t stop them from losing out on second hand game sales though, does it Cort?

    There’s also a big difference between selling warranties on a catalogue of thousands of electrical goods and selling them on a meagre handful of consoles.

    #6 5 years ago
  7. Cort

    Firstly, not all retailers of gaming hardware also sell used games. Secondly, the lack of a second-hand content market doesn’t stop retailers selling iPods. Or is there a big high street trade in used music tracks? And how many retailers are refusing to sell Microsoft’s Zune, which is likely to sell to about 23 people a month?

    #7 5 years ago
  8. Psychotext

    Believe it or not Cort, the Zune is the 3rd most popular MP3 player out there. It’s just that sales of everything in that market look like shit compared to the iPod. :D

    #8 5 years ago
  9. Cort

    I’m sure that’s true, but the position within a chart is no indication of actual numbers, as you suggest. Positions two and three could have sold a hundred times more.

    #9 5 years ago
  10. Psychotext

    Somewhere along those lines… yeah. Last I saw it was something like 70% iPod, 11% 2nd place, 4% Zune.

    That works out to something like 45m, 6m, 2m in sales. :)

    #10 5 years ago
  11. G1GAHURTZ

    Firstly, not all retailers of gaming hardware also sell used games.

    And your point is…? Practically ALL the major specialist games stores do. They’re the ones who Sony will be relying on to shift huge units of their console, and they’re the ones that this story relates to. If it wasn’t for the recent story about Nedgame refusing to PSP Go’s, then this story doesn’t really exist.

    It’s totally obvious. Just go do a quick translation on Nedgame.nl and you’ll see the reasons that Hollands largest games retailer comes up with for refusing to stock the PSP Go:
    ______________________________________________________
    “Nedgame, the PSP GO! not in its assortment. But we will (today) continue to support PSP 3000 lots. The main drawbacks to the PSP GO! For both the consumer and the retailer are:

    - Sharply higher retail ments cons, 249 euro instead of 169 euros.

    - Only have to download games via Sony, this set (higher) prices and less choice.

    - No possibility to swap games and / or sell.

    - Never a cheap game scoring from budgetbak.

    - No possibility to import games.

    - When selling the device you will ‘virtually’ purchased games almost worthless.

    We hope you understand our decision. Most gamers still want a box and booklet in their game, or at least the choice between a physical product or a download. The PSP GO! Sony cut the consumer choice and thus creates a monopoly on the PSP GO! game sales. We see this as a very bad development for both the consumer and the retailer.”
    ______________________________________________________

    Secondly, the lack of a second-hand content market doesn’t stop retailers selling iPods. Or is there a big high street trade in used music tracks?

    This is excatly the same naive point that Pachter was trying to make in the first place.

    Name me an electronics retailer that only sells MP3 players. Can you? I don’t think so.

    The closest thing to that is the likes of HMV or Zavvi, and they sell CD’s, DVD’s, games, consoles, tv’s, mobile phones, audio accessories, etc, etc, etc…

    Anywhere that sells electrical goods will have to sell thousands of different types of products or their business model will fall flat on it’s face, because there will almost ALWAYS be someone selling ‘it’ cheaper.

    They need to make their profits from other means, and like I said, the huge catalogue of products that electronics retailers have allows them to make a lot of money from extended warranties and little accessories that they can put a big markup on.

    You try buying a single electrical product from a major retailer without them offering you an extended warranty, or without your reciept being stapled to a leaflet reminding you how ‘important’ an extended warranty is.

    Games retailers like GAME and Gamestop sell a handful of different consoles (that you can also buy from any electrical retailer), a massive catalogue of games (that you probably can’t) and little Pikachi keyrings (tee hee!).

    The difference in business models is huge.

    They don’t work the same way.

    #11 5 years ago

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