Rumor: PSP Go a no-go for EB Australia? Sony comments |
When asked about the rumor, an SCE Australia representative said that retail support for PSP Go is strong but they could not comment on other companies' business:
In relation to our business and the launch of PSPgo, we are already experiencing solid support for launch day on October 1 in Australia. Retail support of the PSP platform, includes both PSP-3000 and PSPgo. Many retailers will choose to range both PSP models side-by-side, as we continue to offer expanded choice for the consumer for the handheld device platform. As with any new product, there will be continued discussions with retail partners to continue to expand reach over time in line with growth of the entire PSP platform. SCE are also committed to delivering more PSP content including strong IPs like Gran Turismo and LittleBigPlanet this year, plus increased networked services and applications for the platform such as the Digital Reader service which will launch with Digital Comics this December. In 2010 users will also be able to enjoy access to a Video Delivery Service.
So why would Australia's largest games retailer ignore the PSP Go? One reason points to Sony's download-only service for the handheld while others think because of its hefty price tag.
Related article:
- PSP No - largest retailer in Holland won't stock PSP Go
- UK retailer thinks PSP Go will flop badly; Pachter calls retailer boycotts "foolish"
Via Kotaku Australia
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Comments [refresh]
As long as Sony executives continue to ignore the overwhelming response of its own retailers and consumers by issuing these robotic statements, they're destined to fail.
Is there not one person at Sony with a single functioning brain cell? It's too expensive, it offers nothing but disadvantages to the gamer (locked in high price downloads, no second hand market, no way to port existing purchases for those looking to upgrade and a reduced feature-set).
The ONLY ay this product can work if games prices are, to use Sony's words "in parity" between DD and retail, is to make the hardware dirt cheap so the consumer can see at least some advantage.
If they want to price the hardware at £225 in Europe, then the games have to be at least £10 cheaper on DD so the consumer is encouraged to spend more on games to make long term savings.
I give up with Sony, it's a company run by morons. If I ran my company with their head-in-the-sand mentality and telling my customers what they wanted instead of listening to them, I'd have made huge losses like they have. It's embarrassing to watch.
This is the right thing to do if retailers are smart.
That "Stores sell fridges, not food" comment in the other article was not the gaming industry.
Appliances have mark ups. If the Fridge costs $500, the selling company gets $50 (for example).
When a company sells a system, there is no mark up and they make $0, NOTHING. Profit goes back to the console manufacturer. When they sell games, there is a mark up and they make a profit.
No games = no profit.
Sony will have a monopoly on their PlayStation store. The ONLY place you can buy games. They can charge whatever they like. There will not be competition on pricing from other retailers, no "Best Buy vs Target vs Gamestop" pricing action happening. I hope more retailers refuse to sell the system.
Most systems are sold at a loss to the store they sit in the longer they are there the bigger the loss... Ipods are the same way there is about a 5 dollar profit for the retailer the rest goes to apple... same is true for game consoles there is very little to no profit in the console itself. Sony is really screwing themselves by removing the umd from the system if they had found a way to keep it that would be something... or if like it has been said before they put the digital download voucher in every game box.
What i see for the psp go is dismal sales with alot of stock being left in warehouses... if anything it might improve sales of the 3000. I hope some people get fired over this debacle...
Yeah, Sony is really biting their own asses on this one. No retailer in their right minds would sell this one, due to the stated facts that there are basically no profit by selling the consoles, and with no games to make money from is more damaging than good to sell the console.
For the consumer this is a big piece of s#%t as well. No secondary market for used games means you won't get any cash back for new ones once you've beaten it. I can count the games with any replay value at all on my fingers.
To make this work at all for the consumers who trade in they'd have to lower the baseprice on new games by the expected secondary market value, roughly a 50% off. After that steady pricedrops by a few bucks every month, reflecting the aging of the game versus the new ones filling up the market.
....but it would still kill the gamestores....
Just my 2c
Put the freakin download voucher in the hardcopies package. Then i will still have something to happy and secure about. Instead of going up to my friends sayin "yo man i got the fist iso that was released lastnight, aint nobody got this iso!"
I've known about this for a few months now, I didn't think to tip it because I thought it was old news... haha you guys need a rep in Australia.
retailers can still make money off psp games.. it's not like the psp-3000 is gonna be replaced by the psp go.. retailers who wont sell the psp go are morons.. at least make some profit off it while still stocking and selling the psp-3000 along side it.. if people dont like the price, the fact that it dont have a umd drive and the download-only games, then stick with the older psp models coz there's nothing they can do to change the fact that this psp is geared towards the more elite people who can afford such expensive toy..
Your argument is flawed - yes, retailers can "still" make money from PSP games, just not as much if the market is divided in 2.
If there is no advantage to the retailer of stocking a product, why should they do so?
You can still get a PSP Go from electronics retailers that aren't focussed on games of course, but how many gamers will choose to shop at a non-specialist?
You also miss the point - it's not just the hardware but the pricing of the games - why should DD be the same price as UMD's? This affects ALL PSP systems, not just the Go. You can stick with the older models, but you still get ripped off on PSN. I would hate to see any more PSN exclusives like Fate Stay Night. I wanted the game, but I'm not willing to pay more than I would for Dissidia or Soul Calibur at retail.
Bottom line - Sony is dividing its own market and making retail look unnatractive to developers who can sell direct at bigger margins through Sony. If you're a retailer that's a direct attack, and if I were one I'd boycott this monstrosity as well.
the only thing that can make the go useful at all is if it gets hacked...
without that happening then you just have a system with overpriced games that you can't resell or trade in later.
Pirating FTW...
So what model does apple use with the Touch etc? Exactly the same, the retailer only makes money on the initial purchase and NOTHING from any purchase from iTunes or the App store. The higher cost on the Go is to provide some profit to the retailer, JUST LIKE APPLE!
The price of the PSP Go has nothing to do with why a retailer won't sell it. If that was true, they wouldn't sell those $2500 flat screen HD TVs.
The only reason they won't sell it is because they make no profit on the sale of the system. They usually overlook this because they make money on the sales of the games but with a download only system they won't make money there also.
But what they don't realize is that there are places where they can still make money. If Sony comes out with a download code in a game box, or if you have to buy the PSN cards because you don't have a credit card, there's still money to be made. Unfortunately, it's not going to be as much. Especially since they make so much off of used games. And I think that more than anything else is why they are trying to kill the download only option. They make rediculous amounts of profit on used games.
As for the people complaining about the downloadable games costing the same as the store copies. Get real and use your head for a minute. If they were to make the downloadable games cheaper, that would drive more people to download it to save a buck. And since the retailers are already pissed off about the download only PSP Go, how do you think they would feel if Aony starts taking away sales of the games for the 3000 and under models also.
Sony has to keep the price the same so most no Go users will buy the UMD so the retailers don't completely boycott them.
Oh nobody has mentioned how EBGames / Gamestop most profitable item is used game sales. Game resale where the console manufacturer and developer get nothing, zero, nada from each resale. Are you really surpirsed that EBGames feels threatened from this? The first signs their gravy train may be ending? Don't fall into the trap of feeling sorry for them. This is a good thing and we will see more of this in the future.
You are making the wrong assumption that the Go will be sold at a loss from Sony. The reason the price is high is to provide some profit for the retailer. This is just like Apple does.
Even if this is the one exception where retailers might actually make a profit from the sale of a system. A $25-$50 profit on the sale of one system does not nearly equal the amount of profit they make on the sales of games and used games if the system wasn't download only.
When you buy a game for $5 and sell it for $30 and the company that made the game gets nothing, I have no sympathy for you.
The PSP Go! is being hated just about everywhere. Hell my local game store is actually stop buying UMDs of people since of the PSP Go!.
Personally at the PSP Go!'s price I'd rather spend more and go for a PS3 or a Xbox 360 or even a Wii. They should really know that the PSP Go! is a bad investment. I really hope they don't attempt to make a "PSP Go! 2"
The iPhone/Touch is only limited for apps.
With the iPhone, the retailer can make money on calls and data usage.
As a customer you can buy your music on CD and rip it to the device, giving you choice, and if a retailer sells CD's, they can profit from sales there.
The Go comletely locks the retailer out of any further income - the business models are vastly different and I wish people would stop making the comparison, as it's utter tripe.
Yes the PSPGo is priced to offer profit to the retailer -- This is very correct. However, these gaming retail stores are built on the premise of software purchases. Stores like EB/Gamestop sell a limited amount of hardware, with the vast majority of profit dollars coming off of software (both new and used).
Regardless of how it's sliced, there is little to no incentive for a gaming retailer to stock the PSPGo. Big box retailers like BestBuy are capable of stocking the PSPGo, as their business is not predicated upon their gaming department, and thus losses would be negligible.
Either Sony want the Go to succeed or they don't.
You can't argue Sony should keep download prices the same as retail to appease retailers while at the same time selling a product that locks them out of game sales completely, surely?
Sony are already attempting to take sales away from the 3000 by releasing a newer model.
By taking this route, Sony have pissed off the retailers by producing a product that takes away business, and pissed off the consumer by offering a product that offers less in terms of hardware at a higher price that locks them into further premium pricing on games.
Whatever way you look at it, the product simply doesn't stack up, unless you're an elitist snob who wants to be restricted to games available on PSN at premium prices.
Sony appear to have designed this product to fail on purpose. Apart from a shiny new body this thing has nothing to recommend it whatsoever.
That's what I've been saying for weeks now.
No game shops in Aus are going to stock it. Not just EB Games but all game shops. Maybe bigger shops like Target and KJ-Mart might get it but the smaller game shops arn't going to touch it.
I keep saying the only thing that will keep the GO alive is CFW.
Without CFW the GO is dead before it even gets released.
facepalm.jpg
A lot of us hate the idea of this thing but remember this is an experiment for Sony to get people used to DL only, and if you DUMB enough to buy it you will be used as a guinea pig for their future consoles, and sony want to make up for some of their losses with it's ripoff prices.
Trading in your games or buying them used is just as bad as pirating them, at least from the developers' point of view, since the only one to profit from the transaction is the store, not the people who actually made that game.
That is why the retailers are so opposed to the Go. Not because they can't sell new games for it, they don't make all that much money from selling new games, and could easily overcome that by selling cards with PSN credits. They make a lot of profit on used games, and this has to stop, which is why I, and many developers, applaud Sony for this move. It's better for the developers, it's better for sony, and it's actually better for the gamers as well, because the developers earn more money to make games with.
The only ones not to profit from this are the retailers, as you can see.
That's like saying, "Hey the cost of an mp3 player is as much as buying a CD Changer for my home theater system, so I'm just going to buy the CD changer in stead". Good luck walking with your PS3/360 and a TV when you want to play on the Go. Jeez!
I don't deny that sony has pissed off the retailers by releasing the download only PSP Go. But since when has selling a download version of a product at the same price as a retail version been considered "premium pricing"? If that were true we should be screaming bloody hell for alot more things than the PSP Go.
There are companies all over the world selling the dl version of their product on their site for the exact same price as in stores. Hell, alot of them offer to send you a disc if you want, but if you just want to dl it, you still pay the same price. And I don't know much about steam, but aren't their prices the same as in the store?
I think that people just like to complain about anything and everything. We understand why Sony is selling the Go for more (to give the retailers some profit) but yet we still complain. We see every day that the selling of dl software at the same price as retail happens everywhere, but still we complain about Sony. People have been yelling 'the PSP Go will fail' from since it was announced, just like they've been yelling 'the PSP will fail' from the day it first came out. But the PSP is still here!
So I say you all Fail!
So why does Walmart stock the Touch and Nano? Only incentive is the small profit on the h/w and selling iTunes cards. I guess there are accessories. Hmmm gaming retailer sells Go and PSN cards. They could sell accessories. Can't compare the two, totally different.
And there is more, maybe games at retail could come bundled with a code to download the game, thus helping the retailer out. Oh but the greedy game store can't resell a downloaded game for huge margin, screwing the developers and other in the game industry.
Wal Mart sells CD's. It also sells fridges, food, clothes etc. A customer will go back to buy these other items.
Games stores sell games and consoles. If one doesn't require the other, they don't need to go back.
See the difference?
Give it up, your analogy doesn't work.
i doubt you cold run a company as huge as sony.
what disadvantages does buying a pspgo bring?
-high price downloads?
no. they are selling them at the same price as you would find in a game store.
-no 2nd hand market?
as sephiroth_vii put it, this practice does not fly will the game industry at all. however, did you know that you and your five friends can own the same game with one purchase??? that's like $10US per person.
-no way to port existing purchases?
i'll give you that one...but..if you have psp why would you buy a pspgo? and if you do buy one youre obviously not shy when it comes to spending money, so you could probably shell out more money for games. still, sony has stated that they are working on this.
-reduced feature-set?
huh? reduced? how? it does everything the current psp does.
actually, sony is giving people what they want, which is options. you can either purchase a pspgo or you can get the 3000. OH NO I GET TO CHOOSE A PRODUCT THAT FITS MY NEEDS?!!!
acteon, sigh..
who buys games from eb anyways alot cheaper at jb and other electrical stores only thing EB gets is prob limited editions and collectors editions also On Date release but other then that rip off prices $120 AUD at ebgames bigw or jb can pick up for $85 - $89
ummm..i dont know if you notice but sony already has a monopoly on PSN, i mean they do own it.
when new games come out, they're all priced the same at every store. price of game only changes when they value of the game drops (eg. it's used/old) or the retailer needs to make space for more inventory.
and dont give me that ***** about no markup. of course they mark it up, dummy
holy *****!!! finally!! i'm so relieved that some one on here uses their head. you would think common sense would be common, not here though.
honestly, you don't need to have studied business to get it.
a love how people are complaining how much sony is "ripping off" the consumer but fail to see how much places like EB is actually ripping us off. it's already been mentioned on here their money making scheme is all about used titles. when they sell a used game for a "deal" it really isnt because they get those games for dirt cheap.
Why is europe always getting the bad end of the deal?
Sony is ripping us off and i don't care how much profit a store makes selling used games because there's always another store ready to offer a better deal, and that's what you call competition, what Sony has is called a Monopoly.
We can tell you're from America because you think that Australia is in Europe.
(I am from Kansas btw :)
It's not a stupid argument in terms of value and what you are getting. Imagine you don't already have any other platforms. If you just wanted to play games and you have a TV and you walk into a store and you see a ps3 for $299 sitting beside the psp go for $249 which one are you going to pick? For $50 more you get a laundry list of HD content, games, movies, and tons more. For $50 less you get a small screen, crap web browser, and no youtube support, but you do get to take it with you. Most consumers would spend the extra $50 because they will see the better deal imo. And if portable gaming only is your thing then I think people are going to go the way of the DSi. And if you are looking for a do it all device...well I think apple has that market on lock down. I can understand your argument but a CD Changer offers no value over the mp3 player except superior sound quality...but that is only going to matter to a niche market of audiophiles.
no there really isnt another store ready to offer a better deal.
how many videogame stores do you know that can compete with the bigger stores? where do you buy your games? mom and pop's game-o-rama? what can of deals can they offer you and still stay in business against gamestop, eb, bestbuy, etc??
a game only gets cheaper when it's used, old and their getting rid of old stock. when games come out, they come out at the relatively the same cost.
if you were magically the owner of sony, im sure sony will sink in a year or less.
these retailers are stupid. in a businessman standpoint the more items you have the more probability that a person might purchase something on your store which in turns makes income.
as the two people before me said, these retailers are only protecting their 2nd hand profit which hurts developers.
if i live in australia and own a videogame store i would stock 4x the psp go that i would normally would cause these other moron retailers doesnt like profit, their loss is my gain.
and no matter what they do, there will still be lots of people who will buy psp go's. and their store aint got any to sell. and their staff will say "mam we dont have psp go but he have these psp 3000's more awesome because it has UMD and you can buy used games for it" then the children will cry saying "mommy i want the new sliding psp ive seen on tv coz my playmate has a shiny new one". ROFL
selling psp go is way better than selling nothing.
no psp go + no profit.
sony will sell tons psp go one way or another.
these retailers cannot persuade to kill (stop production) the psp go now.
like most people in reality piracy land if these psp go's would be hacked to play iso/cso im sure the psp go will sell like hotcakes. if its cracked and have a custom firmware (made by alex) i would gladly sell my psp slim and buy a psp go.
fits my pocket better, and can also do everything my old big psp can.
and in japan, new electronic gadgets sells even if its expensive, its a fashion trend there.
-im a ps3 early adopter (bought it 500)
-also a psp slim early adopter (bought it 200)
Thats insane. He thinks Australia is Europe. Sarah Palin and him will go great together ;)
@xche78x - you are embarrassing yourself. you obviously have no idea how a business works within the smallest degree.
@truk - what disadvantages would buying a Go bring? well, it's expensive as hell compared to an old PSP. obviously it has a reduced feature set because IT CANNOT RUN UMD'S. doh.
the Go is a *****ing waste of Sony and the consumer's time and money. next time they release a new PSP iteration, let it actually benefit the consumer in some way. the Go fits better in your pocket. that's it. nobody is gonna buy it but rich kids and tech enthusiasts. anyone with a brain would settle for a slightly clunkier 3000 and save a lot of money plus be able to run UMDs.