Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

June 10, 2009 -

For an industry that's supposed to be all about fun, the video game biz is tightly managed from a P.R. standpoint. Not too many people speak their mind publicly or wander too far off message.

That's why we enjoy Mike Pachter, who tracks the industry for Wedbush-Morgan. The guy may not always be right, but he always says what he thinks.

And when Pachter says the $249 PSP Go announced at E3 is "ripping off the consumer," we must agree. The analyst, who was otherwise complimentary toward Sony's E3 presentation, slammed PSP Go pricing to host Geoff Keighley on an E3 edition of Bonus Round:

$249 is too much. Period... The [current] $169 PSP-3000 is a profitable device - the disc assembly, for a UMD, costs more than 16 gigs of flash does. So this new device doesn't cost them as much to make as the PSP-3000 and they jack the price up $80...

 

I'm sorry to say it. I don't want to get bad fan mail from the Sony fanboys, but... They're ripping off the consumer until they sell a couple million and if consumers don't buy it then the price is going to come down... they're making a lot more money on the PSP Go than the PSP-3000. And the PSP Go helps them because there's no piracy...

Maybe I like Pachter because his take on the PSP Go echoes my own. Here's what I tweeted about the system during Sony's E3 press conference last week:

Kaz [Hirai] is holding up PSP Go, but sez PSP 3000 won't go away...

Kaz PSP Go $249... Too much. Sense Me feature will match ur PSP music to ur mood. Um, thank you, no...

 

[Jack] Tretton: Resident Evil Portable. Let's hope that's a working title. LBP for PSP looks sweet. Crowd not really into PSP news, tho.

Via: Joystiq


Comments

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

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Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

Nobody says you have to buy it. The DSi costs a little more than a DS Lite, but is still cheaper than the PSP Go. The downside is that there's no GBA slot, so no Guitar Hero or migrating Pokemon.

When Jack Thompson runs his mouth, does anyone really care what he has to say anymore?

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

$249 is a lot, in the UK it's going to be £249 (about $400), I love the PSP but Sony needs to realise not all currencies are the same.

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

Doesn't the PSP Go use Memory Stick micro? Aren't those cheaper than what the PSP uses now?

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Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

Flash and SD is a quarter the price of M2 cards

 

http://www.newegg.com/Product/ProductList.aspx?Submit=ENE&N=40000068&Des...

 

Sad eh?

 


I am a criminal because I purchase media,I am a criminal because I use media, I am a criminal because I chose to own media..We shall remain criminals until Corporate stay's outside our bedrooms..


http://zippydsmlee.wordpress.com


Copyright infringement is nothing more than civil disobedience to a bad set of laws. Let's renegotiate them.

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Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

Kaz Hirai say PS3 worth 500 dolla but ha Ridge Racer, RIDGE RACCCEEERRR!

 

LOL Kaz strikes again

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

Im gonna skip the psp go, the psp-3000 has the better options for me anyways.

http://www.magicinkgaming.com/

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

At $250 you could buy a PSP 3000 and a 16GB ms pro duo flash card.  Unless you're really hard up on space the Go doesn't have anything going for it.

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

I give it props for being more portable than the PSP Slim and the 16gb of onboard flash, however, it gets major dings for the new proprietary connector, change in external memory to micro pro duo, screen size and price.

I'm keeping my PSP slim and I have a Pandora handheld on order.

Sortableturnip's Law: As an online discussion of video game violence grows longer, the probability of a comparison involving Jack Thompson approaches 1

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

I have already had this discussion with some friends and so I did a little math.  To get a PSP-3000 and add 16GB of (reliable) flash memory (Memory Stick Pro duo) will bring you right up to the $250 range, and that doesn't include the added bluetooth connectivity.  I have no clue what internal memory they are actually using, so it is hard to tell what the actual cost is to Sony. 

And it appears that Pachter's facts may be as reliable as his predictions.  I found a UMD drive and laser assembly for $22.89, or the slim design for $40

It seems to me that between the smaller design and additional technology changes this is not a bad deal compared to what you, as a consumer, can do to make a current PSP as close as possible. 

As a PSP-2000 owner it is over-priced to make me upgrade.  With a PSP-3000 still on the market it is too much for people who don't care about UMDs.  For people who do care it is a more convenient package that is in the same price range as what you could do on your own to get around UMDs.

Overpriced?  Maybe.  I know I won't get one.    Ripping off the consumer?  Definitely not.

Then even if the math doesn't quite work out the way I figure it I still can't call it a ripoff when there is the cheaper model to be found and I am not forced by any means to actually buy the thing.  But then, I understand that the free market works on the wonderful concept of choice. 

GameDrunk - Celebrating our two greatest passions.

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

Wrong wrong wrong and wrong if they use normal flash hardware and buy in bulk they would pay anywhere between 20 and 30$ a pop brining the total to about 200ish, this is nothing more than a greedy money grab on a trendy shallow hardware..... and this means you too NintendoH!!


I am a criminal because I purchase media,I am a criminal because I use media, I am a criminal because I chose to own media..We shall remain criminals until Corporate stay's outside our bedrooms..


http://zippydsmlee.wordpress.com


Copyright infringement is nothing more than civil disobedience to a bad set of laws. Let's renegotiate them.

---

http://zippydsm.deviantart.com/

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

I'll have to re-quote myself since two people appear to think I said this is what Sony is paying and it is well priced.

First, I never once said what Sony is paying.  In fact I said,   "I have no clue what internal memory they are actually using, so it is hard to tell what the actual cost is to Sony."

Then I never said what you would pay for a PSP Go is close to what Sony is paying.  What I actually said is,     "not a bad deal compared to what you, as a consumer, can do to make a current PSP as close as possible." 

I then did call it overpriced.   "As a PSP-2000 owner it is over-priced"

And as for it being a greedy money grab on a trendy shallow hardware:  So?  As I said, "I understand that the free market works on the wonderful concept of choice."  It is overpriced, so I choose to not buy it, but fully intend to enjoy Gran Turismo on my PSP-2000.  I think it is awesome that Sony left me that choice. 

GameDrunk - Celebrating our two greatest passions.

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

Wow, on first reading this post it SOUNDS like it makes sense, but then I actually looked at facts.

So I found the 16gb thing you were talking about on amazon for 71.86. It's probably not the cheapest one available, but amazon generally has very good prices. So yeah, buying that and sticking it in there, would bring it up to around 250 bucks. However, do you seriously think that sony is adding in memory by just somehow putting in an internal pro duo stick?

I found (also on amazon) a 16gb usb drive for 28.56. USB drives are more expensive than built in flash memory so it's less than that. Then if you add in the fact that Sony is ordering components in bulk (probably orders in the hundreds of thousands of this flash memory component at a time) you can cut the price in half again.

It would be insanity if they were paying more than $15-20 for the flash memory.

Now after all that, I still don't think it's really a ripoff. I'd say it's overpriced, but it's not completely crazy or something. A good price point would have been $199.99.

So we have come to the same conclusion, but you just came by the highway of questionable logic. 

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

As a heavy believer in the geek factor, I wonder how long it will be before someone figures out how to crack the PSP-Go? Sure as heck didn't take them very long with the DSi.

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

nsted of exchangeing the Gdamn UDMs is it so hard to get the PS3 or a 60$ device to rip it into a DRM'd file that locks it to account/PSP/PS3?

 

Sony....you fail.......

 


I am a criminal because I purchase media,I am a criminal because I use media, I am a criminal because I chose to own media..We shall remain criminals until Corporate stay's outside our bedrooms..


http://zippydsmlee.wordpress.com


Copyright infringement is nothing more than civil disobedience to a bad set of laws. Let's renegotiate them.

---

http://zippydsm.deviantart.com/

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

That risks too much piracy unless rental services like Gamefly stop renting UMDs.

GameDrunk - Celebrating our two greatest passions.

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

DRM! what do you not understand?

UMD games are already easy to rip theres no point in allowing normal consumers to make digital files of their games that have 2 layers of protection on them(one to PS3/PSP and account and tag them with basic username/account info), sorry  but when you can go online and get any UMD game image you want for free it just makes them out to be hypocritical greedy bastards that need to be taken advantage of as much as possible.

But I guess thats the point when they do stuff like this and have nothing worth while for the consumer other than a new shallower than ever trend, basically they want people who can hack it and run free stuff to do so while they try and corner the market on idiots....

 


I am a criminal because I purchase media,I am a criminal because I use media, I am a criminal because I chose to own media..We shall remain criminals until Corporate stay's outside our bedrooms..


http://zippydsmlee.wordpress.com


Copyright infringement is nothing more than civil disobedience to a bad set of laws. Let's renegotiate them.

---

http://zippydsm.deviantart.com/

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

I'm not talking about piracy of the ripped and then DRM'd file.  I'm talking about how a system that converts your current UMD to a digital only file without exchanging the UMD in will allow people to just rent every game on UMD and then use that system to get games.  It would be equivalent to renting from Netflix and ripping to Divx using software provided by Paramount, WB, etc. 

Just because it is easy to pirate does not mean that the industry should provide the tools for it.  That would be like Wal*Mart inviting you to shoplift.  Although, considering Sony's casual attitude toward PSN game sharing it wouldn't surprise me if they did something like this. 

GameDrunk - Celebrating our two greatest passions.

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

In my opinion, paying more than $50 for a PSP is paying too much. But that's just me.


If you go crazy then I will still call you Superman.

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

That's Sony. They have some pretty good products, but their PR department's run by epileptic chimpanzees on meth. Evidence: "THIS PORTABLE NUT!" "WHAAAT?!"

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

On the other hand, if the PSP was THAT expencive to make, then that would explain the high price first up from the back.

 

like the PS3 was twice as expensive when it was first released, so at least it was not THAT much.

 

TBoneTony

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

I know that anything 250$ for a PSP in Australia is considered normal,

 

so to me compared to the US, I would have to pay at least $500 for a PSP Go.

 

@_@

 

TOO EXPENSIVE!!!!

 

I'd rather go for an old used original PSP thank you.

TBoneTony

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

Um, at the current exchange rate $250 USD = $309 AUD, however we all know how much the game industry (along with most other industries) likes to jack up the price here in Australia, just because they can get away with it.

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

Overpriced? Yes.  But to say that Sony is "ripping off" customers is a bit too far.  If you don't like the price point, don't buy one.  Sony isn't forcing anyone to buy it. 

Pachter needs to start acting like a real economist and less of a source for headline hyperbole. 

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

He isn't an economist. He is an industry analyst.

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

I completely agree with you, Zerodash. If it was an "inelastic product," one such as gasoline and for which consumers will continue to spend despite an exorbitant price simply because they generally have no choice in the matter, then I'd see the "rip-off" claim more clearly. But I'm thinking the same thing you are: ain't nobody holding a gun to your head and forcing you to buy one.

Re: Pachter: $249 PSP Go Rips Off Consumers... We Must Agree

He's just saying the PSP Go is way overpriced, is all.

"Rip-off" can mean two things: over-pricing, and stealing. This is the use of the former definition. Stealing would be if Sony were hiding some terrible fault or boasting about features the PSP Go doesn't have.

Sony doesn't SEEM to be hiding anything (we know of), and the presentation seemed straight forward. In the end, the consumer may know what they're getting, but whether or not they're getting what they pay for is for them to decide. Is the features (or lack thereof) of the PSP Go worth the extra $80?

You may think so.

I don't.

 
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