Chips and Grainger bosses question PSPgo’s price point, reluctant to stock new handheld
Independent retailers have sharply criticised the proposed price point for Sony’s PSPgo and indicated it could result in them not stocking the new handheld.
Speaking to Edge, Chips’ joint managing director Don McCabe said: “The price is too expensive. You need to see some sort of revenue streams coming off the back of these machines, otherwise from a retail point of view it’s just not worth it.
“Sony will need to come up with some sort of mechanism so that if we’re going to sell the machine it’s beneficial to ourselves and to our customers.”
While the device has yet to receive an official RRP in the UK, Sony has declared it will cost $249 in the US and €249 in Europe. MCV has previously reported that UK retailers such as GAME, GameStation and Gameplay are already promoting PSPgo for £230.
“We can’t see where that price justification comes in when effectively it’s a lighter, slimmer PSP,” said McCabe. It’s got a bit more memory, but memory’s not that expensive. It can’t handle UMD so part of the mechanism disappears, so where does that price come from?”
Advertisement
Grainger Games director and head of purchasing Chris Harwood added that the current PSP models are “struggling”, even with a price point of £129, and that the indies’ efforts to push the handheld with bundles have been fruitless.
“The PSP just seems to have died as a format really,” he said. “Nothing sells at the minute on PSP.”
“Right now, I can’t see any justification for stocking it,” said McCabe. “Certainly I’m not getting the response from consumers. Normally, potential first adopters are on the phone within seconds of it being announced. I don’t have a single pre-order for PSPgo.”
Both indie bosses revealed they are reluctant to stock the PSPgo when it launches on October 1st. Harwood explained that Grainger will “probably” support the format, but will do so cautiously.
“I think we’ll have to stock it just for the customers that want it,” he said. “For something like a new console we have to give the customer the option. We’ll probably still have the PSPgo, but we’ll start with a small campaign, and then stock them as we need in very little numbers.”
McCabe added there is a “distinct possibility” that Chips stores will not be stocking the new handheld, unless consumer interest increases significantly.
Comments
ha ha
Mccabe, dear me, he makes me laugh
McCabe
henry ford i dont think you have got a clue! I think Mccabe is right he must no something as 1 off the most successful indies out there! i have been at meetings with McCab and sony and they seem to listen to what he has to say but i suppose you no better please telll us all and why you no better !
i love it
sorry i must bow down to chips, ha ha
The Don
Don knows his chips (sorry bad pun).
But seriously, he's been around a long time and knows the industry inside out. And I agree with all his comments.
PSP has been dead for a while. The new incarnation has nothing for retail (and that includes majors not just the indies) and in all honesty doesn't seem to have excited the punters much.
Margins on hardware are extremely tight at the best of times but the software at least gets customers back into store. The PSPGo doesn't offer this so why bother stocking it?
Ollie
I can agree with what is being said no margin and no future sales leaves little incentive for retailers to put a major stock push behind it.
But with regards to the comments i would have to agree with the grainger games comments that they will support it low key to provide for their customers that request it. I think the comments from chips are a little narrow minded saying its a distinct possibility they will not stock. I think these 2 different outlooks really show why Grainger games have been so successful over the past 2 years and are opening so many stores whilst chips have really been retreating with the closure of many stores. It really does show that sometimes margins & £££ is not all you need to think about sometimes providing for customers does go along way.
But i totally agree that sony are not making it easy for retailers and its just another step that is making the gap between Sony and Microsoft larger, at bit like the chips and grainger games situation.
Tight margins
Maybe this is the games machine that breaks the mould, maybe the huge price tag includes a healthy margin for retailers? In a small way this would compensate for the lack of games sales.
Then again, maybe not :(
Re: Tight margins
@ Chris
Chris your right. Sony has already stated that margins for retailers will be higher on PSPGo. So they should see I nice return on every unit they sell. I do think that that is part of the reason why PSPGo is more expensive, though I also think Sony does have substantial 'wiggle' room on PSPGo's price even when factoring in the higher retailer markup.
Bottom line is retailers WILL stock PSPGo, even the indie's. Whether they end up selling by the boat load is another question.
Pricing
If its £130 for a Psp with a UMD drive, it is impossible to justify above £130 for a Psp with no UMD drive.
The pspgo is atleast £100 over priced.
digi dist
Isn't the PSPgo solely a console which loads software through digital distribution?
If that is the case then retailers will not expect to sell the usual 1-2 games that most console puchasers buy at point of sale. That will hit profits hard compared to other formats.
ridiculous
They were doing so well too getting new interest in their machine. The price is ridiculous ...especially when some people are buying up bricked psps for twenty quid or so and fixing it.
And good point, holdmykidney. Not only are they selling something so expensive that won't sell and wouldn't offer decent margins if they did ...but it actually promotes digital distribution, the death of the stores.
Pre-Pay Cards
I think a lot of people are missing the fact that Sony can just as easily send out physical pre-pay cards for consumers to purchase in-store, and use to download a particular game. Microsoft has done it before with certain Live Marketplace games, this would be a good way of keeping retailers on board.
Not quite sure why everyone seems to have forgotten that, though.
Can and wiil?
Svend...
Yes they could do that, but will they?
The PSP imo is sonys first step in to a DD only console, there will be much ranting and raving about this, but Sony like loosing money as they have so amazingly proved with the PS3.
/golf clap Sony
Maybe they have realised what the PSP is used for.
Maybe Sony realise that the only thing keeping the PSP alive is the homebrew and emulation scene, both of which do not require UMD.
Maybe they have decided that the PSP has very little future playing games of it's own, so they are trying to cash in on what people are really using the machine for.
Or maybe they're just continuing with the tradition of shafting the Europeans for as much as possible, whilst offering as little as possible in return... PS3 launch consoles anyone?
I honestly cannot remember a generation of gaming where one company has continued to rub consumers up the wrong way with pricing. It seems they think we all earn as much as they do, where in reality, a lot of us are not earning at all.
Translation
Let me translate what the retailers are saying...
They are afraid of online content distribution only for a gaming system. They are not as important anymore in that scenario. That is even more true for the trade-in market which would be completely eliminated. So if they don't stock it or advertise it then most people will buy the UMD version. Only the die hard fans will request the PSP Go version.
Seriously though. The big feature for me with the PSP Go that is making me pre-order one is the bluetooth feature. I have an A2DP stereo-headphones/hands-free bluetooth headset that I would love to use with it. Plus the ability to use my phones internet connection for the PSP Go (bluetooth).
Smaller is always more expensive. Look at tires, bikini's, etc.
Online Pharmacy best pills dfg
http://confluence.public.thoughtworks.org/display/~buy-xanax-no-rx - xanax http://confluence.public.thoughtworks.org/display/~buy-tramadol-no-rx - tramadol http://confluence.public.thoughtworks.org/display/~buy-valium-online - valium http://cgi3.ebay.com/ws/eBayISAPI.dll?ViewUserPage&userid=buy-ambien-online-without-prescription-buy-ambien-10mg-5mg - ambien http://cgi3.ebay.com/ws/eBayISAPI.dll?ViewUserPage&userid=buy-xanax-online-buy-xanax-2mg-1mg - xanax http://cgi3.ebay.com/ws/eBayISAPI.dll?ViewUserPage&userid=buy-fioricet-online-without-prescription-buy-fioricet-cod - fioricet http://connections.blackboard.com/people/50273d6fc2 - tamiflu http://tapestry.formos.com/wiki/display/~buy-tamiflu-winthout-prescription - tamiflu http://boinc.vanderbilt.edu/CSB/view_profile.php?userid=5324 - ambien http://confluence.public.thoughtworks.org/display/~ativan4r5r - ativan http://confluence.public.thoughtworks.org/display/~buy-ambien-without-prescription - ambien
euros daughertykc uncheck dvds reuse nowhere freely
Leave a Comment
HOT TOPICS
Religious leaders slam Modern Warfare 2 130
Microsoft hails its ‘killer weapon’ in battle with PS3 and Wii 38
Russia pulls Modern Warfare 2 from sale? 16
The Hut rebuffs AC2 date break claims 14
MW2 sales pass $550m worldwide 13
The Producers pulls out of Trilogy partnership 12
60% of UK 360s have failed 11
Xbox Live class action begins 10
Facebook hitting PS3 today 8
Call of Duty inspires new retailers 6
RELATED STORIES
Indies aren’t dead yet, says Grainger Games 6
Indie retail booms as recession bites 1
COMPETITION: Win a disc repair machine 4
Indie cries foul over MW2 date breaks 2
Indies praise MW2 launch support 11
Sony confident on PSPgo price point 11
Retail anxious about PSPgo 2
New UK PlayStation hardware prices confirmed 14
GameStop: ‘We’re excited for PSPgo’ 1
US: MotorStorm: Arctic Edge dated 1
ABOUT US
MCV is the leading trade news and community site for all professionals working within the UK and international video games market. It reaches everyone from store manager to CEO, covering the entire industry. MCV is published by Intent Media, which specialises in entertainment, leisure and technology markets