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Forums - Sales - Should SONY Scrap PSP2?! (If they plan to make one)

PSP2 will be very similar to 3DS with better graphics, but it won't sell as much as 3DS, because, simply, Sony is not Nintendo

you can call my fanboy, but this is the truth

Nintendo is one step further, at least the last 5 years!



don't mind my username, that was more than 10 years ago, I'm a different person now, amazing how people change ^_^

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Squilliam said:
Alby_da_Wolf said:

 

And nobody even considers a possible MS entry into the portable market.

Microsoft is already entering the market. Windows mobile 7 games are about as close to an Xbox 360 Arcade title as you can get without actually making them 1:1. IIRC the code base of a typical game is 97% identical. So it goes without saying that Windows Mobile 7 will get a decent supply of downloadable games, enough to make it a gaming platform in its own right.

@Smashchu:

"According to an NPD data analysis, the iPhone is now responsible for 19% of all revenue generated by handheld games (as of 2009), compared to the PSP’s 11%. Obviously, the DS still reigns supreme with 70%."

http://socialmediaseo.net/2010/03/25/iphone-beats-psp/

Given the fact that the iPhone has a superior (read more profitable) distibution model the likely split between iPhone and DS is likely to be closer to >30% publisher revenue compared to <65% for the DS as the distribution fee is a flat 30% vs the obvious packaging, distrubution, retailer and license costs from Nintendo.

That's not even 1/4th of the market. How can we say that Apple is a threat? They obviously do not have anywhere near the strength  to effect Nintendo.

A few other misnomers. The distribution is not really "more profitable." What it really has is higher margins (Difference bewteen the slaes price and it's unit cost). Profitability is the end result. Let me take two products (and we'll say they are both softare titles on two diferent platforms) and show you how one is more profitable)

  Game A Game B Game C
Selling Price $5 $40 $40
Variable Cost $2 $48 $30
Unit Gross Margin $3 $2 $10
Sales 500 50,000 50,000
Gross Margin $1,500 $100,000 $500,000

See how A, despiting having a weaker margin, would generate more revenue. This is because it has a higher potential to sell better. Game C was to show that higher price can mean better margin. The most the margin for A could be was $5 (this is with no cost). The most the Margin of product B and C could be is $40. There is a lot more wiggle room. Because the price is higher, it can meant the margin can be higher as well. Now, look at this.

Notice how iPhone has far more games. They have asmaller peice of the pie and it is spread across more games. This means they they are not a real gthreat to Nintendo as making a game on a Nintendo system has a higher chance of yeilding better profits. The 19% is more from shear bulk them from compeling software.

So I still say that Apple is no threat to Nintendo.



No they shouldn't scrap it. They should just make one that's cheap (like $199 from launch) and good games.



Chairman-Mao said:

No they shouldn't scrap it. They should just make one that's cheap (like $199 from launch) and good games.

that's just a myth ..

don't you know there are no good game's on any playstation platform at all..all the good game's are made by 3rd party.

with Nintendo getting all the 3rd party support there is no need for Sony in the handheld space

$199.00 still would not matter.

it would still be seen way to over priced vs. Nintendo



I AM BOLO

100% lover "nothing else matter's" after that...

ps:

Proud psOne/2/3/p owner.  I survived Aplcalyps3 and all I got was this lousy Signature.

they should wait a little bit, it still has a little juice left.



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we still don't know what the psp2 will be like. It could possibly upset the 3ds.

I'm going to find my old psp2 thread and necro it.



theprof00 said:

we still don't know what the psp2 will be like. It could possibly upset the 3ds.

I'm going to find my old psp2 thread and necro it.

why bother..it's not like it's going to matter...

" It could possibly upset the 3ds."

No because anything Sony make's can never disrupt anything Nintendo put's out because Sony never Innovates.:P



I AM BOLO

100% lover "nothing else matter's" after that...

ps:

Proud psOne/2/3/p owner.  I survived Aplcalyps3 and all I got was this lousy Signature.

Smashchu2 said:
Squilliam said:

"According to an NPD data analysis, the iPhone is now responsible for 19% of all revenue generated by handheld games (as of 2009), compared to the PSP’s 11%. Obviously, the DS still reigns supreme with 70%."

http://socialmediaseo.net/2010/03/25/iphone-beats-psp/

Given the fact that the iPhone has a superior (read more profitable) distibution model the likely split between iPhone and DS is likely to be closer to >30% publisher revenue compared to <65% for the DS as the distribution fee is a flat 30% vs the obvious packaging, distrubution, retailer and license costs from Nintendo.

That's not even 1/4th of the market. How can we say that Apple is a threat? They obviously do not have anywhere near the strength  to effect Nintendo.

A few other misnomers. The distribution is not really "more profitable." What it really has is higher margins (Difference bewteen the slaes price and it's unit cost). Profitability is the end result. Let me take two products (and we'll say they are both softare titles on two diferent platforms) and show you how one is more profitable)

  Game A Game B Game C
Selling Price $5 $40 $40
Variable Cost $2 $48 $30
Unit Gross Margin $3 $2 $10
Sales 500 50,000 50,000
Gross Margin $1,500 $100,000 $500,000

See how A, despiting having a weaker margin, would generate more revenue. This is because it has a higher potential to sell better. Game C was to show that higher price can mean better margin. The most the margin for A could be was $5 (this is with no cost). The most the Margin of product B and C could be is $40. There is a lot more wiggle room. Because the price is higher, it can meant the margin can be higher as well. Now, look at this.

 

Notice how iPhone has far more games. They have asmaller peice of the pie and it is spread across more games. This means they they are not a real gthreat to Nintendo as making a game on a Nintendo system has a higher chance of yeilding better profits. The 19% is more from shear bulk them from compeling software.

So I still say that Apple is no threat to Nintendo.

All your post really does is highlight the fact that Apple has a very different business model than Nintendo in the handheld space. The fact that this completely new, and still rapidly evolving, business model has gone from 0% to 19% of US handheld software revenue in less than two years — and with no help from loss-leading hardware or 1st party development — would suggest to me that Apple really is a threat to Nintendo.

Look, it's really simple. There are three notable platforms for mobile gaming. Currently, Sony's platform is in decline, Nintendo's is maintaining speed and about to change course, and Apple's is growing rapidly. If Apple isn't a threat to Nintendo, who is?

Personally, I'm glad that Nintendo isn't as dismissive of Apple as you are.



"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event."  — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.

joeorc said:
theprof00 said:

we still don't know what the psp2 will be like. It could possibly upset the 3ds.

I'm going to find my old psp2 thread and necro it.

why bother..it's not like it's going to matter...

" It could possibly upset the 3ds."

No because anything Sony make's can never disrupt anything Nintendo put's out because Sony never Innovates.:P

http://gamrconnect.vgchartz.com/thread.php?id=111728&page=1&str=1717119676#8



famousringo said:
Smashchu2 said:
Squilliam said:

"According to an NPD data analysis, the iPhone is now responsible for 19% of all revenue generated by handheld games (as of 2009), compared to the PSP’s 11%. Obviously, the DS still reigns supreme with 70%."

http://socialmediaseo.net/2010/03/25/iphone-beats-psp/

Given the fact that the iPhone has a superior (read more profitable) distibution model the likely split between iPhone and DS is likely to be closer to >30% publisher revenue compared to <65% for the DS as the distribution fee is a flat 30% vs the obvious packaging, distrubution, retailer and license costs from Nintendo.

That's not even 1/4th of the market. How can we say that Apple is a threat? They obviously do not have anywhere near the strength  to effect Nintendo.

A few other misnomers. The distribution is not really "more profitable." What it really has is higher margins (Difference bewteen the slaes price and it's unit cost). Profitability is the end result. Let me take two products (and we'll say they are both softare titles on two diferent platforms) and show you how one is more profitable)

  Game A Game B Game C
Selling Price $5 $40 $40
Variable Cost $2 $48 $30
Unit Gross Margin $3 $2 $10
Sales 500 50,000 50,000
Gross Margin $1,500 $100,000 $500,000

See how A, despiting having a weaker margin, would generate more revenue. This is because it has a higher potential to sell better. Game C was to show that higher price can mean better margin. The most the margin for A could be was $5 (this is with no cost). The most the Margin of product B and C could be is $40. There is a lot more wiggle room. Because the price is higher, it can meant the margin can be higher as well. Now, look at this.

 

Notice how iPhone has far more games. They have asmaller peice of the pie and it is spread across more games. This means they they are not a real gthreat to Nintendo as making a game on a Nintendo system has a higher chance of yeilding better profits. The 19% is more from shear bulk them from compeling software.

So I still say that Apple is no threat to Nintendo.

All your post really does is highlight the fact that Apple has a very different business model than Nintendo in the handheld space. The fact that this completely new, and still rapidly evolving, business model has gone from 0% to 19% of US handheld software revenue in less than two years — and with no help from loss-leading hardware or 1st party development — would suggest to me that Apple really is a threat to Nintendo.

Look, it's really simple. There are three notable platforms for mobile gaming. Currently, Sony's platform is in decline, Nintendo's is maintaining speed and about to change course, and Apple's is growing rapidly. If Apple isn't a threat to Nintendo, who is?

Personally, I'm glad that Nintendo isn't as dismissive of Apple as you are.


Apple is in more direct competition with Sony than Nintendo. They compete in phones, computers, mp3 players, content distribution, ebook readers. Just about everything Apple has done recently has affected Sony.

I think Apple is less concerned with gaming as it is in entering the consumer electronics arena. That is where they can have the biggest growth.



Anyone can guess. It takes no effort to throw out lots of predictions and have some of them be correct. You are not and wiser or better for having your guesses be right. Even a blind man can hit the bullseye.