Wedbush-Morgan analyst Michael Pachter has publicly apologized for saying that Sony was "ripping off the consumer" by setting a $249 price point on the PSP Go. The eminently quotable Pachter made the damning comment about the new handheld last week during an E3 segment of Bonus Round.

Apparently thinking better of his words in the interim, Pachter penned an apology yesterday as he debuted a new monthly column for IndustryGamers:

I sincerely regret the choice of words... where I said that Sony is "ripping off" the consumer by pricing the PSP Go at $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...

GP: Pachter is a straight shooter and, apology notwithstanding, I believe he was speaking from the heart when he made his original comment. It's not too much of a stretch to imagine that there were a few angry phone calls from Sony HQ to Pachter between the airing of the "rip off" remark and yesterday's mea culpa.

But the fact is, Pachter got it right. Why does the PSP Go, which does away with the UMD drive assembly, cost $80 more than the current PSP-3000? There's no good reason, and gamers knew that even before Pachter spoke out. From the moment it was announced at E3, the PSP Go's $249 price point went over like the proverbial lead balloon.

Nor do I think much of the PS3 justification floated by Pachter in his retraction. Sony is losing money on the PS3, certainly, but that's no excuse to try to make a few million back by skinning consumers with the PSP Go. Personally, I love my PS3. But if Sony overdid the hardware, over-estimated their market and totally screwed up the worldwide launch, that's on them.

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

They say that you can sell just about anything on Craigslist. And if allegations by SCEA are correct, a pair of enterprising - if not especially bright - game pirates used the popular online service to advertise their illegal PSP modding operations.

In August SCEA filed suit in U.S. District Court in California, alleging that Gabriel Garcia and Timothy Joey Zoucha, Jr. modded PSPs and loaded them with over 500 pirated games. Both men live in San Jose, California.

In its complaint, Sony alleges that Garcia billed himself as: "THE ONLY TRUE FIRST PSP MODDER ON CRAIGSLIST," offering "cash only package deals" that included "500+ PSP games". Sony said that Garcia even went as far as to display a PlayStation logo in his Craigslist ad.

Sony apparently used private investigators to track the pair down. One P.I. met with Garcia at his residence, according to the complaint, and paid the alleged pirate $80 to mod a PSP and load it with 100 games. Garcia apparently advertised such a transaction as his "Super Spring Deal". The complaint further alleges that Garcia sold the investigator 11 DVD-Rs containing more games and then showed the investigator how to transfer the games to a PSP via PC. Ever-helpful, Garcia also gave the investigator a "How to Use Your PSP Mods" guide on DVD.

Among the pirated games allegedly sold by Garcia were Grand Theft Auto: Vice City Stories, Parappa the Rapper and Twisted Metal: Head On.

Zoucha was taken down in similar fashion, according to the complaint, which alleges that he agreed to mod the P.I.'s PSP for $28 and supply a DVD containing 100 pirated games for another twenty bucks. The complaint also says that, like Garcia, Zoucha sold the investigator five DVD-Rs containing additional pirated games and told the investigator that he would give her a deal if she brought him more PSPs to mod.

Among the titles allegedly supplied by Zoucha are: Burnout: Legends, Call of Duty: Roads to Victory and Madden NFL 08.

From the complaint:

Defendants Gabriel Garcia and Timothy Joey Zoucha, Jr... brazenly offer their services on Craigslist.org to "mod" or "unbrick" PSP consoles so as to allow illegal unauthorized copies of SCEA's video game software to operate on the unlawfully modified PSP console... Defendants were caught red-handed...

A court date is scheduled later this month. Read the complaint here.

We all know that Sony's handheld PSP is a great system that can do a lot of things, like surf the web and play games, music and video.

But marketing blog I Believe in Adv. reports that in Australia a specially-branded edition of the system was used to market Stella Artois beer.

Although it's not entirely clear from the I Believe in Adv. post, it does not appear that Sony was involved in the modification of 50 PSPs which were distributed to beer sales personnel. The PSP case was etched with a Stella Artois logo on the back side and the systems were packaged in black velvet drawstring bags which bore similar branding.

The idea was designed to motivate the sales force as well as provide it with data via the PSP's WiFi capabilities:

Foster’s was expecting a brochure, or a folder with loose-leaf pages. They gave them 50 customised Sony PlayStation PSPs instead... they also modified the operating systems and icon sets to reflect the brand. Then they installed the Stella Artois films and artwork, plus short presentations on the history of the brand.

 

And because PSPs are wi-fi capable, Foster’s can load up new material quicker than new pages can be printed for a loose-leaf folder. Foster’s analysis has shown that every sales representative who was given a PSP met all their sales targets for the relevant quarter. Anecdotal feedback also confirmed that without exception, the PSP was regarded as the best sales presenter ever received. As a result, Foster’s is now reviewing further rollout of the tool.