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Pachter apologizes for PSP Go "ripping-off" comment

Posted Jun 13, 2009 at 12:47PM EST by Glenn M.

Listed in: News, PSP Go Tags: Geoff Keighley, Michael Pachter, Sony

Michael Pachter can be quoted for a lot of big claims, most recently his "ripping-off" comment against the PSP Go. Speaking to Industry Gamers about the controversial statement, the Wedbush Morgan analyst admits to poor choice of words, adding a full explanation and an apology to set things straight.

Michael Pachter's apology:

As long as you're giving me a forum, may I please beg your indulgence for a statement? I sincerely regret the choice of words in my response to Geoff Keighley's question in last week's Bonus Round, where I said that Sony is "ripping off" the consumer by pricing the PSP Go at US$ 249.99. I made a poor choice of words, and I do NOT think that Sony is doing anything nefarious in choosing their pricing strategy.

The company has the right to price its products at a point that they think is competitive, and has no obligation to sell products at lower than a competitive price. They have been subsidizing purchases of the PS3 since launch, to the tune of 22 million sold at a loss of $100 or more apiece (on average), so if they are able to make a profit on the PSP Go, more power to them. They are pricing at a point that positions the PSP Go competitively with the iPod Touch, and the PSP Go arguably has much more value than the Apple product.

Notwithstanding my view that the price point is too high to generate more than a few million units sold, I really think my comment was unfair, and would appreciate your allowing me to clear the air on IndustryGamers.com.

Fair enough. The PSP Go has weathered (and still weathering) its share of criticisms since its E3 unveiling, and despite Pachter's apology, the US$ 249.99 price tag remains a pricey purchase. Whether or not it can successfully compete with the iPod Touch is another story, and we'll be checking the sales figures to find out.

More from Michael Pachter:

Pachter: Natal, PS3 MC won't topple Wii

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The PSP Go is a rip off and he had every right to voice his word about it regardless of what anyone thinks. If Sony have a strong trust in the product then the sales will prove him wrong, however to say what he said "Sony are overpricing the PSP Go and a majority of people in the know are not going to buy the product for several reasons, price being the main reason. It is also badly designed, pointless and it lacks in user consideration (not everyone has a suitable internet connection, what of UMD's?)". I then ask will this comment end up being a big argument?

# Lame. — Rosh31 2009-06-13 14:18

Why would I waste that much money on a psp and not even be able to play my umd games. I think it is way overpriced and I'm happy with my 1000. I'd rather buy a ps3 if I had extra money to spend on video games..

# sooo — saikisen 2009-06-13 14:26

I wonder how much Sony paid him...

# why apologize — Sw3RvE 2009-06-13 15:04

it looks like crap. it costs too much.... it looks like a rip-off of a REAL PSP.

# like i said before — sirgrinalot 2009-06-13 15:05

Why is this considered a ripoff? I paid 249 for the psp 1000 4 years ago which came with a 32mb memory stick. I didn't buy a 1 gig until the price came down to 100, and I didn't buy a 8 gig until the price came down to 100. And did I mention that my psp phat is still working perfectly? now I must say that is 249 $$ well spent.

# how is it obvious that Sony paid him? — houaruto 2009-06-13 15:07

first of all try to pull your head out of your crapbox girlyfanboy @s$.........................everyone makes mistakes n uses poor choice of words (points to comment above)................Patcher is not the best but he a man of his profession and analyst tend 2 try not 2 be 2 opinionated maybe he felt he crossed the line..............correcting himself is a good move since he doesnt wanna sound like all those crapbox fanboys...........his reputation is at stake here

# WTF?? — Atownaction 2009-06-13 15:12

I dont understand why he is getting a hard time in telling the truth I mean I have a psp slim and I am happy with it unless they do some changes to the product then I wont mess with it and thats a promise!!!!

# Agreed! — bobby18121 2009-06-13 15:20

'ripping off' sounds just right if you ask me, so theres nothing wrong with telling the truth, i thought we was suppose to have a freedom of speech. lol, sony is always 'upgrading' there hardware to make ppl buy them again. whereas the 'upgrading' should and could have been in the developing part from the start. i.e it could easily have been psp 1000 - psp 3000, without the need of making psp 2000.

# yeah right — Bense 2009-06-13 15:28

"They are pricing at a point that positions the PSP Go competitively with the iPod Touch, and the PSP Go arguably has much more value than the Apple product."

I have been the biggest psp fan for the past 3 years. I own no apple products. But the psp is not in the same league as the ipod touch. If the psp go had a touch screen, thus giving it a much faster typing interface, many more people would be likely to get one.

M2 micro? Puh-lease. Another proprietary cable? Puh-lease. The psp platform was released in japan on dec 12th, 2004. this new unit doesn't do anything outstanding more than the original unit did.

# one thing — sirgrinalot 2009-06-13 15:32

@ bobby18121

I think you are forgetting that nintendo and apple do the same exact thing as far as "upgrading" is concerned. When making portable devices the rate at which tech develops is slower than making a full fledged console mainly because of its size. So they must be "upgraded" to stay competitive.

# um — sirgrinalot 2009-06-13 15:34

have you tried playing games on a touch screen? It sucks balls...

And can you even comprehend 16 gigs of memory built in? That in itself is something the original psp had to wait till last year to get.

# sony ! watching iphone appstore — vizard00 2009-06-13 16:22

corumted ,

sony wana flow iphone strategy by removing umd , mfkrs we will alwas fk u sony , sell us psp go 250 $ and we will get 20000 $ of games for free , thats why piracy must exist . also sony ripped all guys who collected their best game umds , since they cant play it on psp go , but thinks to umd ripping , tnx to Dark alex , tnx to you guys and QJ .

# Nope — saikisen 2009-06-13 16:41

I'm just saying that if you had watched the video his choice of words were not poorly chosen at all. And from the looks of things on Joystiq and other blogs and such sites that posted this, people actually respected his statement. Now I just lost respect for him, for retracting a statement that actually made some sense. Nevertheless, from the looks of the comments so far it seems as if the majority of us find that Patcher's statement was correct earlier.

Also, from the choice of your words, it seems as if your the real fanboy here because I don't even own a "crapbox" and have only owned a PSP this generation, oh but then again you did mindlessly assume things.

# what's the big deal — Genotype 2009-06-13 16:53

A new PSP 3000 and a 16 gig card cost around 250 bucks. Stop crying b*tches

# Sony ripping you off? — houaruto 2009-06-13 17:06

you have the freedom to buy what you want.......i dont remember them forcing you to do anything but 2 take the ride and enjoy the show.......

a quote from the military when you try to get out after you sign the contract "no one put a gun to your head and force you to sign it"

everything in the market at least the US and industrialize contries are control by this basic 3 words in economics.. Supply and Demand

prices are not control by Sony but by how many units they can or want to produce and how many millions of people that are willing to buy it...............its stupid how an analyst like Patcher fail 2 factor that in before he pull a load of crap out of his mouth..........

its even worse how everyone got that message engraved in their skull and now crying like a fat kid who just got his cake snatched away from him

just for the record it is basic knowledge that millions of things you can buy from a retailer, online, corner store, or that shop you always steal things from all base their prices on SUPPLY AND DEMAND.

# I wonder how much Sony paid him... — houaruto 2009-06-13 17:16

read this comment again and ask yourself who mindlessly assumed things....ROFLAMO

# DUDE!! — AssassinXCV 2009-06-13 17:39

I have a PSP 1001 too! Hi 5!!! LOL, 1001 rules cause they aren't made cheaply like the slim, and we get 1.50 kernel!!!

# ... — sirgrinalot 2009-06-13 18:24

And God said amen.

# Heh — Teivin 2009-06-13 19:49

There is a huge supply of PS3s and no real demand, yet the price remains a constant.

Sony pays no mind to the simple logistics of your childhood economics. Most of the video game industry doesnt, in fact. Simple fact.

# meh — genesiscopy 2009-06-13 20:32

like i said this is the textbook example of skimming pricing... although in real life there are many other variables that needed to be taken into account.

i think that sony's just doing this to cover their sunk cost and whatnot. besides the demand is semi-elastic/inelastic (since they're the only producer of psp, but they had to compete with other products of the same genre). and basically the 'innovators' and 'early adopters' are the ones that're gonna help sony in achieving this objective (taken from some marketing textbook).

but for products like ps3, well, let's just hope that the marketing manager for ps3 still had some common sense left.

# He — whaleshark 2009-06-13 21:01

Didn't have to appologize. In fact, I completely agree with him. For something that is going to give the consumer so much hassle in trading in their games, and the fact that once your hard drive is full, your going to have to either constantly transfer games onto your computer, or have to get a new memory stick for every 8 games (Assuming you have an 8 gig memory stick, or sony starts supporting larger memory sticks... which they might already.)

I say, that the price should be an even 180. Without UMD support, and a second analog stick, what is up with the price being so high? There is no added plastic, except for the sliding buttons. You know why your paying?

Because of the brand name.

And I hope to god that this trend does NOT continue. Quite simply, look at TV's. Look how expensive some are, and others arent. While here, its true that some are better, now look at HDMI cables.

Monster cables are EXPENSIVE.

While other cables, with lesser known brand names, are much cheaper. And EXACTLY the same.

I got my HDMI cable for 5 dollars. And it is *****ing great.

So, I agree with Pachter. Sony IS ripping you off.

# first comment was correct — NakedFaerie 2009-06-13 21:10

His first comment was valid and correct. There was no need to apologise for it.

He said the cost of making the PSP GO is LESS than making the 3000 as 16MB is cheaper than a UMD Drive.

They removed pieces so the cost to make is down but they upped the price by $100. Doesnt make sence to me.

I doubt it costs over $100 for a bluetooth module. You can buy a USB one for $10 so there is no valid reason for the $100 over the 3000 price of $160.

When the cost of the PSP GO is under $200AUD then I will get one. Till then $ony will not be getting my money. I already have a 1000 and 2000 so no need for another PSP yet. IF I can get a 3000 for under $100AUD then I'll get it.

$ony are just priced too high.

The ipod touch is also a 32GB unit where the PSP GO will be a 16GB. I think the prices are the same so it still doesnt justify the price of the GO yet. The ipod touch can do more than the GO so $ony either drop the price when its available or you will keep loosing money. Your loss, not ours.

# well — sirgrinalot 2009-06-13 21:23

"I doubt it costs over $100 for a bluetooth module. You can buy a USB one for $10 so there is no valid reason for the $100 over the 3000 price of $160."

The following prices are the cheapest available via google shopping.

PSP 3000-----------------$169.99

16gb Ms Pro Duo--------$73.32 +

----------------------------------------------------------

Total $243.31

Add in the bluetooth, and you have yourself a deal.

# @ Sirgrinalot — urherenow 2009-06-13 21:51

why are you being an idiot? If you want to add the price of a Ms Pro Duo (which has nothing whatsoever to do with the frice of the 16gb flash in the go)

then at least subtract the price of a UMD drive you moron

# idiot — sirgrinalot 2009-06-13 23:06

my whole *****ing point was the go is priced accordingly... *****in moronic people trolling the webs these days...

# read ... — zer0xx 2009-06-13 23:44

before you comment read sony will replace your umd with a digital copy.

# fanboy — zer0xx 2009-06-13 23:52

he's a psp fan and he cannot afford the go!

# if — zer0xx 2009-06-13 23:55

they should make 1st party games and app if they want to compete with itouch.

# dear oh dear — pewpie 2009-06-14 02:30

what a pu$$y.

# Hmm — Acteon 2009-06-14 02:38

"Rip-off" may be too strong a comment, but his basica financial analysis was sound. However, you have to take into account costs beyond simple manufacturing - there's R&D costs and profit to take into account.

The apology wasn't necessary, but I think it was made for reasons beyond just cowtowing to Sony - it makes him look bad as an analyst.

My own thought, as a consumer, is that it's less product for more money, and that doesn't sit well with me.

# - — APerson 2009-06-14 03:55

It is considered a rip off because a PSP-2000 or even 3000 is much less and is only lacking bluetooth. You will still be able to do everything else the Go does but on a much cheaper PSP.

Plus, as you said, it's now a 4 year game system. Charging that much for something that old won't do you any favours.

# Who? — Vipre77 2009-06-14 07:00

Who the hell gives a crap what this guy says and why on Earth do we have to keep hearing about it? This "analyst" sucks at what he does. All he ever does is state the obvious. And this time, after stating the obvious once again, he backpeddles... What a douche...

# to the few people who have been living under a rock for last 15 years — StingBlah 2009-06-14 08:28

and do not have internet, don't buy the psp.

It's completely unjustified to not have internet in this day and age. If they don't have internet, I doubt they should buy a PSP. put it toward a 8 months of internet dip*****s.

# Telvin, — StingBlah 2009-06-14 08:32

that's retarded. there's a limit to which you can follow supply and demand. Another price cut for the PS3 and sony will be bankrupt from selling too many. Just because consumers want it at the same price as the Xbox360 (which has far fewer features) doesn't mean sony can or should meet that equilibrium.

# Well. — kupomogli 2009-06-14 11:02

While the PSP Go is overpriced in comparison to the slim PSP, in terms of what he said in pricing against the 16GB ipod touch, it's a great deal.

The ipod touch is a huge ripoff. I don't know how Apple sells that stuff. They have amazing marketing for such *****ty products.

# pachter... — fearlubu 2009-06-14 11:40

shouldnt of said sorry, the PSPGo really is ripping of their customers

keep whatever bit of pride you have left you piece of ish

you finally say something righteous and true and u gotta take it back...

*sigh*

# PSP 1000 — astano 2009-06-14 12:00

Who thinks we should sell PSP 1000's online with Custom Firmware installed, homebrew programs installed and all that sort of stuff and see if we can outsell Sony :)

I strongly believe we could sell more consoles, despite the fact they are 4 years old and the price difference would be massive. Whose in?

# question — sirgrinalot 2009-06-14 13:09

So where do you plan on getting enough 1000's to outsell sony, I beleive they would outsell, that is if you had enough considering they have been out of production for a couple years.

# - — sirgrinalot 2009-06-14 13:14

I guess it all depends how much 16 gigs of memory is actually worth to someone. Now, me personally am willing to pay 249 for the go, only because I have seen how much junk you can fit on an 8 gig. The added features like bluetooth are icing on the cake.

# @Teivin — houaruto 2009-06-14 15:32

what you said was a perfect example of how much you dont understand childhood economics as i used supply and demand to demostrate how prices are set in the market............the market sells at a price to maximize profit as in the everyday things you can buy............the PS3 is an exception as it was selling at a loss which they were losing money by selling it.............StingBlah was right on the money with his post.............Teivin it would do you some good to open up an econ book as you sound very uninformed yet blindly pointing a finger

# wow... — omgeggman 2009-06-14 15:39

Your grammar sucks balls. Before you make fun of Sony's decisions you should check your grammar. And if you read the previous articles you would know that Sony IS GOING TO REPLACE YOUR UMD'S in the form of a download. And piracy will not exist on the PSP Go. Sony will probably patch it and all the games that come out through the Playstation store

# @sirgrinalo — houaruto 2009-06-14 15:40

I am with you here man.......its hysterical how most people here shoot first then ask questions later or not at all.............they might as well climb on trees and fling crap at each other as that seems to make more sense to them

# .. — omgeggman 2009-06-14 15:41

roflmao

# Sony's smart move? — omgeggman 2009-06-14 15:43

If you guys check the E3 highlights then you'll know that Sony plans on making all games digital by releasing them in the PS store. Think about why they would want to do this. They probably want to patch games to make sure that they can't be pirated and when the hackers do find a way to hack it, they can quickly patch all the other games. Easier to patch digital downloads than UMD's, no?

# nice to hear — houaruto 2009-06-14 15:45

that someone else can also view this in perspective other than pure impulses

# psp — festizzio 2009-06-14 18:26

****in the psp at launch was this same price and plenty of people bought one, i don't know why people are *****ing about it

# 1001 all the way. — UltimaArmorX 2009-06-14 18:38

Once again they refused to make a psp with a 2nd analog stick. What's the opposite of win?

# What's the opposite of win? — mr.x256 2009-06-15 00:32

You.

# - — mr.x256 2009-06-15 00:46

The $5 + $100 HDMI cables are not the same.

# Go's 16 gigs are required. — Galduke 2009-06-15 10:13

People still defending the Go's price by comparing the Go against a 3000/16 gig memory stick, please understand that after trading in your umds for downloads on your go, how much space will you have left for multi-media purposes?

# ? — sirgrinalot 2009-06-15 14:26

So you plan on keeping every game you own on UMD on your 16 gigs at the same time?

1. You can't play all your games at the same time.

2. You could only play 1 game at a time with the 3000, seeing how it doesn't have a 6-slot UMD changer.

It would be idiotic to fill up your 16 gigs with games. The way Sony will probably do it is by telling psp owners to use the new media go app on your pc allowing you to choose which game/games to put on your psp go.

# hmmm — truk 2009-06-15 14:42

about 10gigs

# huh — sirgrinalot 2009-06-15 18:10

10 gigs of what, the single layer umd's hold 900mb and the dual layer umd's hold 1.8gb, so thats quite a few games.

# my collection of psp games — truk 2009-06-16 04:01

it will only take up about 6 gigs. that makes about 10 gigs left for music, videos, and porn.

# StingBlah 2009-06-18 04:32

porn.

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