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Andrew House in the house: why the PSP Go costs that much, why PS3 price has no conflict with recession woes |
Listed in: Interviews, News, PSP Go Tags: Europe, interviews, MCV, SCEE, Sony, UK
New SCEE president Andrew House has taken some time out to sit with MCV UK and talk about his experiences as the new big man of the company. Central to this interview would be his explanation on why the PSP Go holds the price tag that it has, and where exactly is it based from. This should clarify all those speculations as to why Sony went down this route, and hopefully will dispell any more impression that they're ripping people off.
According to House, the US$ 250 tag wasn't put there to make up for the lost UMD sales the retail stores will have since the handheld is going the digital route. Nor is it there to make up for research and development costs. Simply put, "those aren't the factors," he said.
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.
As with all hardware launches you look at the business model, the cost structure, and the necessarily level of profitability, and you use that to set the wholesale price. Much as we do with any other hardware.
And speaking of "any other hardware", the PS3, which has yet to receive a price cut, is also being dubbed as overpriced by some sectors. In response to that:
The strategy there is to say that, not to harp on about it, the device has a 10 year lifecycle and that there are issues of cost and profitability. We will make that move on price when all those factors are aligned.
Would people buy more when they are cheaper? Of course. But on the other hand there is an inherent marketing challenge. In Europe I think people do see the value of the machine, the Blu-ray and network services and take that all into consideration instead of just focusing on price. But we will look at price and will address it when the time is right.
To this, some people will predictably retort: "But isn't this the perfect time for lower prices? You know, cos we're in recession."
Clearly the industry as a whole has seen some impact from the recession. I think everybody would agree we've held up tremendously well in the circumstances. On balance, we are still a good value for money entertainment form, especially in terms of dollars per hour spent.
So I don't think there is a conflict - you have to be clearly sensitive to consumers' perceptions right now. I am something of an optimist; I think there will be a turnaround within this calendar year.
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Via MCV UK
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ill be happy with my old ps3 as long as they wont discontinue it.
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Yeah they did think about the factors real good.. lol
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Apple iPhone 3Gs = advertise it's "cool" & 'there's an App for just about everything". So if Apple can sell a $299 CELL PHONE in a recession why can't Sony sell a $399 Awesome Game system?
You know the "I'm a Mac Vs I'm a PC" ads, wouldn't it be funny to see Sony rip that off....hmm imagine...
I'm a Xbox, I'm a PS3...Xbox says hmm you cost more...PS3 raises eyebrow says "Do I? Do I really?..." then you see the PS3 using wi-fi, then the Xbox dude says I can too but takes a $100 out of his pocket, then PS3 does online gaming, Xbox says me too- then takes more money out....then PS3 watches a BluRay Xbox takes Wad of cash & buys a player...then the camera pans back to see the sleek PS3 doing it all, then you see the Xbox, with wifibox, & bluray player box stacked on top of it...Ad closes with God of War 3, Eye Pet, & Uncharted 2 ...ONLY on Playstation 3--- Booya!
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Bottom line is it is a broken psp with a 16 gig memory card
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I see the value in the PS3, PS2 and the PSP, but if Sony think the Go! follows the same pattern, they're seriously deluded. Pachter was spot on and I'm just sorry the Sony machine forced him into a retraction.
I like Sony products, but I hate the corporation behind it - you only have to look at the marketing of their current generation to see how shockingly inept they are.
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I do not need WiFi for it, I love Xbox Live (and know a place which sells 13 months of GOLD for 33 euros), and I couldn't really care less about Blu-Ray with my crappy 26'' SDTV.
Oh, and the Halo series, Amped series, Forza Motorsport series, GTA IV + add-ons, Project Gotham Racing series and such games are awesome.
I have nothing against the PS3, I'm sure it's a great console, and it's not that expensive anymore either, it just isn't for me.
It's just that I'm reeealllly tired of this PS3 and Xbox 360 fanboyism.
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I prefer the concept of the GO so would be in Sony's target market, but I'll not be buying one until it costs the same as the current PSP. Aside from the 16GB memory (which is cheap these days) all the components are simpler and smaller, it should if anything be cheaper. No hardcore PSP fans that I know of will buy a GO even for their "collection".
You may as well save up for a few more weeks and buy a ps3... which at £300 I do see as good value for money but the least Sony can do is not openly admit that because I think so they're going to keep the price high.
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Hell, I'm a PS3 owner and have no 360, but might get it in the future when i have extra cash to spend, and I seriously would not use that for a commercial ad. Cause tbh, you don't even need all the accessories for the 360 to play games, yet for the PS3 it comes automatically packaged standard so the users have to pay more to get it.
Don't get me wrong here, I love my PS3 and will continue to play the games it releases, but at the end of the day 360 is still selling better than the PS3 and is cheaper. But I do agree Sony needs a better marketing idea though. I say they should look on the forums and see what the fans, and there's some creative fans out there, would suggest for a marketing idea. It would serve them greatly.
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$250 are 177€ not 250€ -.- Nice how we Europeans get ripped of again... fortunately I still have my old PSP 1000 and I'm not gonna buy the PSPgo
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Do you go buy a Lamborghini because you really want one instead of a Porche, and say "Oh, but it should be cheaper so everyone can afford one." No, so neither do you with Sony products amongst others.
Lamborghini don't want just anyone driving their cars, it's a symbol of status. As with the Japs, average just won't do.
You don't have to listen to me though, educate yourself and read up a little on Japanese culture and Italian Perfectionism.
Long story short, f you can afford a PSPGo and want one, buy it, if you can't buy a different PSP or a different console brand.
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I only attempted to show that Apple has marketing genius, because everyone knows spec wise you anybody can get a BEAST of a PC (with way more processor, graphic card, HD, Ram power stat wise) then any Mac.
Apple doesn't try to be the cheapest, it doesn't even try to sell being the most powerful. It sells it's uniqueness + quality. I do admit my comment sounded TOTALLY Fanboyish...but my intentions were just to show if Sony wants to be more expensive it's got to change the marketing.
I don't own a 360 just because it aint my thing, but I do own a Wii too. Plus I've had ps2, ps1, genesis, amiga, c64, atari 2600, imac, iphone....so as you see I'm not for any particular company - I just go with what I like at the time :)
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Why do you think people buy iPhones...
alias_neo needs to learn that there is more to life than social status and gadgetry.
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Charging extra for something that has no extra value (and is in fact cheaper to produce) just because you want to limit the market to the rich is just wrong.
Using your example, Lamboughini use premium parts and engineering, that's where the cost lies. PSP Go! uses cheaper parts and costs less to manufacture, so the "premium" label has no basis in fact, it's just Sony's way of screwing the rich first.
I can comfortably afford a Go!, but I resent being asked to pay extra for a unit that costs less to make and ties me into one source for my games (which is the most expensive way to buy them, incidentally).
But hey, if you're rich AND stupid, then knock yourself out.
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I also agreed with the advertising the PS3. But Sony has had alot of trouble with that for the last year and a half. So they definitely need to use the forums and get some of these talented members to give them up marketing ideas. Since there's quite a few.
tyrant156 - The video game industry is actually the same in size if not larger than cellphone industry.
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Sorry Sony. But I think you made an ultimate fail.
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