SCEE: PSPGo was introduced to learn about consumers

[Squilliam]

superchunk said:

Squilliam said:

Twice as many games were sold direct download to Apple devices last year than were sold directly by retailers for the PSP in the U.S. also arguably if the piracy arguments are anything to go by the majority of the PSP audience either doesn't give a crap about the platform or pirates digitally anyway.

Carrying around a game console plus additional games is quite a lot to move at once. Having it all together is much more convenient for those who actually use them whilst outside the house.

Whether they go 3G, wireless or cartridge based they still have a distribution cost. Its probably cheaper for a 3G module more flash than normal than distributing games via retail. This means more profit for them and more profit for publishers.

 

 

Assuming your data is right, you're forgetting that its a phone that all ranges of people are willing to spend $100-200 every couple of years, that the retailer gets big kickbacks from AT&T/Apple, and that the apps are generally only a few dollars.

That's a big difference and really makes it uncomparable.

Had the PSPGo launched at $120 with the same gaming options where Sony gave the retailers a good margin (i.e. Sony would have lost money on it), then it might be a success depending on if that initial jump in sales generated 3rd parties to create downloadable versions of popular games.

The apps may be a few dollars but on a revenue basis its almost double that of the PSP. Furthermore the margin on an iTouch is only marginal and as close to a home console as you can get for a similar device. I cannot comment on any kickbacks for the retailer any phones but at least 2/3 do not have these kickbacks if you also consider the iPad which is likely similar to the iTouch in margins for the retailer.

But you see, Apple doesn't have to sell their products at a loss for them to sell. They can make money on the devices themselves and the content delivered to those devices. They have a much stronger business model than Sony does for any of their own platforms.