Wed, Dec 08, 2010 | 20:33 GMT

Pachter: PSP2 will be “dead on arrival”

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Wedbush Morgan Securities analyst Michael Pachter has said he thinks the handheld market is “in trouble,” and thinks PSP2 “is going to be dead on arrival.”

Speaking on the latest episode of his Pach Attack show, the analyst said he feels that the handheld market is reaching saturation point.

“We’re way approaching saturation on the handheld market,” he said.

“We’re starting to see DS hardware sales crack, I think the ubiquity of the iPod Touch is cutting into the handheld market, I think the PSP is dead on arrival and I think the PSP2 is going to be dead on arrival.”

“It looks to me like young kids are just as happy playing with an iPod Touch or a Nano. The Touch is cool, it plays games, plays music, they’re going to put a camera in it and you’re going to get all kinds of cool stuff.”

Patcher did have some positive words to say about Nintendo’s forthcoming 3DS. However, he feels after an initial spike, sales will dip handing the initiative back to Apple.

“The 3DS will prolong the handheld market for the game manufacturers, but ultimately, I think handhelds are in trouble. I really think as the iPod Touch gets more and more powerful, you’re going to see a lot of free games over there.

“What’s the difference if you play Tetris on an iPod Touch or on a DS? Well, you pay a buck on the iPod Touch, you pay $20 on the DS. Parents prefer $1 or free software, I think the iPod Touch is going to sell really, really well. So, after the 3DS has had its little rush I think the handhelds will continue to decline.”

Nintendo is to release 3DS in Europe and the US in March next year, while PSP2 is expected to arrive near the end of next year.

33 comments

#1

themadjock
06/12/10, 7:58 am

Yes and borderlands was sent to die…….

#2

Gekidami
06/12/10, 8:07 am

Meanwhile in Japan, portable games sell so much in one single country they put global sales figures of a good amount of games to shame.

Again, Pachter being a true American only looks at NPD figures and ignores the rest of the world. He also ignores the quality of games as always.

#3

Dannybuoy
06/12/10, 8:20 am

Good thing about analysts is that they are just that. Analysts. They often get things very wrong. Let’s wait and see eh Mickey boy.

#4

typeface
06/12/10, 8:22 am

You know what the difference is between an ipod touch and a DS. One has buttons and screen protectors do not really fiddle with the touch screen.
Plus the way the iPhone or iPod touch works is that unless you buy a new version every two years you’ll find a lot of games not working.
2G is mostly dead for games now, 3G is dead for a lot of games like some Cave shooters and there’s games that are now not great for the 3GS.
With a DS or a PSP technically you can play the games even on the earliest models, though granted some DSi specific features are locked in some games – but you can still play them.

What the 3DS and PSP2 offers is basically a good portable device that’s primarily built for gaming with unique ips. Most of the iPhone’s unique ips do end up getting ported over for other platforms as lite, xbla or minis but not the other way around.

Totally agree with 2 btw :)

#5

Danbojones
06/12/10, 8:39 am

BTW, he says ‘ubiquity’ not ‘big woody’…

#6

The_Deleted
06/12/10, 8:42 am

Core gamers want something defined for games, not something that does everything else with a few games thrown in to kill time during boring office meetings. 3DS will be massive, the PSP2 is going to need a big push.

Danbojones said:
BTW, he says ‘ubiquity’ not ‘big woody’…

that makes much more sense… :D

#7

datamonkey
06/12/10, 8:48 am

“playing with an iPod Touch or a Nano”

You can play games on a Nano?

#8

dirigiblebill
06/12/10, 9:28 am

“BTW, he says ‘ubiquity’ not ‘big woody’…”

:D

And the Misquote of the Year award goes to…

#9

chronoss2
06/12/10, 9:29 am

this guy has to shut his mouth cause nothing of what he predicts happens…

#10

onlineatron
06/12/10, 9:35 am

I really don’t understand why people are judging the PSP2′s success on that of the PSP.

I’ve had several friends say to me that the PSP2 is a non-entity for them because they dislike the PSP.

Why isn’t the PSP2 considered a fresh start? Better controls, connectivity, game support and it could be a FANTASTIC handheld… Regardless of what the PSP was.

#11

Blerk
06/12/10, 9:38 am

“Big woody” has made me spit coffee on my desk! glol!

#12

Bringit
06/12/10, 9:58 am

PSP is really successful in Japan.

#13

Tallon 4
06/12/10, 10:36 am

Pachter stfu…

#14

scuz
06/12/10, 10:58 am

I know it’s a slow morning for news but PLEASEEE stop quoting this dumpling of a human being

#15

2plus2equals5
06/12/10, 11:17 am

Psp2 success confirmed! :D
@14: I agree, kill pachter with fire!

#16

ARFarokhi
06/12/10, 12:00 pm

@10
If SONY supports PSP2 as they should and make great games for it, your friends will eventually buy it.

#17

OlderGamer
06/12/10, 12:34 pm

It took me a long time to warm up to the PSP, but once Phantasy Star was on it I am enjoying the system daily. Mostly all it ever takes is the right game. So to me what Patcher is really saying here is that no good PSP2 will ever come out? What a moron.

Does anyone know if the PSP2 will be BC? I digitaly bought Phantasy Star Portable 2 and would love to be able to use it on a new system.

#18

Gekidami
06/12/10, 12:37 pm

^ It hasnt actually been officially announced yet, so no one knows the details.

#19

onlineatron
06/12/10, 12:40 pm

@17
I’d assume it would be backwards compatible with digital titles but not UMDs.

I think Sony will scrap the UMD format this gen.

#20

theevilaires
06/12/10, 12:51 pm

@1 +100 dont know about you guys but im buying one when it releases.

#21

daytripper
06/12/10, 12:57 pm

see what games are coming out first, if i like the look of the actual games i’ll pick one up. pachter must not be getting the views he wants otherwise he wouldnt of come out with such a narrow minded statement.

#22

back_up
06/12/10, 1:06 pm

That will happen to Windows and 360 lol

#23

mortiferus
06/12/10, 2:42 pm

Until the whole package is announced (specs, services, etc…), NO ONE, can state with certainty if PSP2 will flop or not.

#24

Elven_Star
06/12/10, 2:50 pm

Apparently Patcher has no idea about Japan’s market.

#25

Erthazus
06/12/10, 2:55 pm

You know, someone need to smash him with the list: PSP sold for 62 MILLION UNITS AND IT WAS THE FIRST SUCCESSFULL HANDHELD THAT IS NOT FROM NINTENDO

+ it’s the 7nth in most sold consoles WW, so he should just shut the fuck up.

#26

Crysis
06/12/10, 3:40 pm

@25, Software is where the PSP is failing, even the biggest titles aren’t meeting expectations, so to sell more than the 360, it’s far from a failure speaking purely hardware, but both the DS & PSP are dieing from pirate uploading rom onto torrent sites, one guy here in Aus got fined $100thous for uploading some Mario game, Nintendo is trying to fight it directly, Sony is trying to prevent it with mandatory updates, either way they both lose.

#27

themadjock
06/12/10, 3:50 pm

Yeah if GoW Ghost of Sparta looks that good on PSP think what a game on PSP2 would be like… and without finger cramps :)

#28

Robo_1
06/12/10, 4:00 pm

The first post tells you absolutely everything you need to know about this guy.

Oh, and of course, we’re all looking forward to unwrapping Wii HD this year too… yes???

The guy is a cast iron tool.

#29

Koncept6454
06/12/10, 4:38 pm

I’m sorry but I’ve never known pachter to ever be right, u watch his show on ign and I still haven’t seen a Wii hd or a Wii 2, epic mikey has sold terribly in my store, borderlands was one of the best games of late, and the psp has done extremely well in places like Japan, so what if it hasnt done that well in the usa or eu, they wouldn’t be making a second one if it hadn’t made them shed loads of money!and the ds still continues to sell on its masses. I can’t wait for this next generation of handheld, hopefully they’ll top what they’re predecessors have already done!
Also on the subject of phone games, they’re rubbish!

#30

Haseef
06/12/10, 6:50 pm

BIG WOODY!! Joe can actually be forgiven for thinking Pachter said that… sounds about the smartest thing coming out his mouth :)

#31

Bond James Bond
06/12/10, 6:57 pm

What’s the difference if you play Tetris on an iPod Touch or on a DS? Well, you pay a buck on the iPod Touch, you pay $20 on the DS.

True, but you don’t get Nintendo games on the iPod/Phone. Plus the amount of fucking junk on iTunes only makes Nintendo/Sony hardware that more appealing.

#32

sg1974
06/12/10, 8:10 pm

For once I agree with Pachter. Sony is about five years late with a touchscreen gaming device. And the App store (if there is one) will no doubt be gimped by Sony’s software guys and outdated approach to such things.

#33

metamorphic
07/12/10, 2:57 am

Pachter has truly outdone himself with his utter stupidity. Tetris, really? Who pays this man?

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