By using this site, you agree to our Privacy Policy and our Terms of Use. Close
makingmusic476 on 23 January 2011
Edit Thread
greenmedic88 said:
makingmusic476 said:

Honestly, this thing shouldn't cost all that much to make.  The iPhone 4, for example, costs under $200, but it sells for $499 by itself, and $199 with a phone contract.

The question is whether they'll price the device like smartphones and .mp3 players, with a hugh mark-up on each one sold, or whether they'll stick with how they've launched consoles in the past, selling it it at or below cost.

After all, the ps3 was far more functional than competing Blu-ray players at the time, yet it sold for far less when it launched ($599 vs $1000 or more).

1. But the iPhone has the benefit of subscription fee kickbacks to generate revenue. That's on top of their 30% cut from app sales on the AppStore.

2. The PSP2 wouldn't get such subsidies from its 3G carrier service unless there is some sort of data subscription contract involved, which would be a first for a simple game playing device.

But I don't think SCE will have to sell the PSP2 at a loss. The iPhone 4 only costs about $187 to manufacture. There is no single component in the PSP2 that should make them excessively expensive to manufacture. An OLED touchscreen display is in a $199 portable media player, so even that doesn't qualify.

And since SCE is presumably counting on media sales to generate revenue (unlike just about any media player not tethered to a first rate content/media portal like iOS devices), they shouldn't have to count on a huge mark up per unit for what is still basically just a game and media player.

1.  Apple and theiPhone yes, but that doesn't apply to other smartphone manufactureres like Motorola, who sell similarly priced phones.

2.  The PSP2 will require internet for online play, digital distribution, and probably browser use as well.  It will require internet access in a manner more similar to smartphones than eReaders and other devices, and I can't see them not charging a monthly fee unless they severly limit what functionality you can use via 3G.  For example, only allowing downloads from the store via wi-fi.