PSP Price Cut & More
A price cut for PSP. Now there is an idea that could only make gamers happy with Sony. Why in the world would Sony want to make anyone happy? There's no surprise in bringing this news to you today, considering the incredible losses Sony is enduring with their notebook batteries catching fire, and anticipated losses with PS3 hardware. Are you ready for the shocker? Okay... here it comes... Sony has confirmed that they will NOT be cutting the price for PSP in North America through the end of 2006. Wow! Can you believe it? I can, it's Sony. Though I suppose it only makes sense, considering how much their slated to LOSE this year in profits. Personally, I could care less. I already own my PSP.
A product manager for Sony had this to say, "We don't necessarily see the need to cut the price. We need to offer broader value and introduce new consumers to what the PSP can do."
Huh? What a fab business model. Someone should pop that guy in the head. What you need is a cheaper handheld with more games, ass. Since it's launch in Fall 2005, only 5.5 million PSP's have been sold in the US. This could be due in part to a weak video game library, which Sony anticipates adding 110 titles to by the end of 2006, doubling their total game library. Exciting!! Here's the hard truth; I have one friend with a PSP, and it's because he stole it from Dave & Busters. Not many people want to spend that much for a handheld - it's that simple.
I think Sony needs to pay more attention to Nintendo DS if they want to survive in the handheld market, anyway. Nintendo of America's President Reggie Fils-Aime tells USA Today, "Nintendo DS in Japan outsells all of our competitors by a factor of five to one. We are so far in advance of our handheld competitors that they're not even on the map. That's all based on a market expansion strategy, and that's what we're looking to do with home consoles." Sony, are you going to let Reggie talk shit like that? Ouch. Nintendo's coming back swinging, folks.
One of Sony's ideas to boost PSP sales is to "soon reveal how the PSP will integrate with the upcoming PS3 console". Quite honestly, if you don't already have a PSP, and there is no price cut, I can't see a whole lot of gamers spending $1000+ to grab the combined package, and play with how they integrate. Watch out for video games to be blamed for armed robbery and store break-in's (and not just school shootings) come November. Sony needs to start hiring some people from the middle-class, beacuse these high-end loosers are missing the boat.
Sony, I can't afford you anymore. Now if you'll excuse me, back to playing Mob Wars.
3 comments:
Well, if they're losing money on each unit sold as it is (I'm not positive that they are), cutting the price will only reduce profit on a per unit sold baisis. And, as you mentioned, with the relatively small library of games, it will be difficult to make up for that with games sales. It goes back to their grand strategy, that they want to put out a top of the line product, and charge top dollar for it. I'm not sure that it's a strategy that they can change mid-stream like that. And people will buy a PSP during the holiday season, so there's eally no reason they'd want to cut it now.
I know. I don't care about Sony as a whole, I care about my pockets. Other Gamers should too.
Well, we know what happens to companies (divisions in this case) that don't act with fiscal responsability... In the end it's a business, and the consumer must recognize that, and either pony up the cash, or look to the alternatives.
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