I have to start this by saying I find Nintendo's pricing move to be quite FUD-like and probably a bit premature. The 3DS had been out for barely 4 months WW, 5 months in Japan, and has yet to see its first holiday season. To go ahead with a big $80 cut under those circumstances is, in my opinion, quite foolish. I don't believe any company has ever made a similar decision, especially when that company has been the market leader in that field for the previous gen, let alone 3. But what is done is done, so let's switch to what this post is really about. Does Sony need to worry about the PSV now there is an $80 price difference?
In my opinion, no. If you look at the PSV's price by itself, it is quite an attractive offer. The PSV will be launching at the exact same price as the PSP, but will have much better graphics and many additional features. Both of which have seemed to draw positive attention from many in the gaming industry. The PSP itself was a great success, even though it launched at a full $100 more than the original DS. Its HW sales are quite impressive in a market that was dominated by Nintendo, and one that saw the previous competitor to Nintendo (Sega) only manage to sell 11 mil units of their handheld (the Game Gear). The PSP will most likely sell over 7x that amount when all is said and done, putting it on par with Nintendo's own GBA. And while many tout the DS's lead over the PSP, I think it would have been a much different story had the DS launched at $250, just like the PSP. Really, I think it just comes down to Nintendo fans expect lower prices even if they have to sacrifice some power and a few features, while Sony fans don't mind paying a little extra for the power and features. Of course, SW sales are another thing.
Now, while the PSP has had a few games that have sold quite well, overall, SW sales of individual titles are nothing really to brag about. Unfortunately, this seems to have hurt 3rd party support, mainly in the US and EU. I think Sony aims to change that with the Vita. Not only is it easy to develop for, but it also sports controls just like those found on home consoles. This should make it easier/cheaper to develop and/or port games onto the system, while also giving gamers a familiar feel to how they play at home. Then you also have the touchscreen and pad, which should lend itself to some very unique features in core and casual titles. Sony should see some awesome 3rd party support this handheld gen. Something that will greatly help its chances of outperforming the PSP.
So, in the end, Nintendo's price cut will definitely give the 3DS a nice boost, but I don't think Sony has anything to fear. The Vita should fair well this holiday due to the normal boost, plus an additional boost from being the newest handheld on the market. And they should be able to continue with good sales if they bring their A game in terms of support. Something I think they have every intention of doing.
