I wish UMDs could be installed into the psp's Memory stick, similar to what the 360 does, that way people wouldnt bothered about not having a physical copy. I like the PspGo but i also like having physical media. The stronger processor is awesome though.

Go PSP Go!

I would really like to get this, it looks tight and it will be MUCH more portable. I could really care less how much a handheld/console initially costs(unless it is unreal) because it is just a one time payment to invest in some fun. You pay $250 for it and you forget about the extra cash a few months later. It is a good price if you think about it, MP3 players and ipods with this kind of functionality would cost like $300.

Still, if I can't somehow put the games I already own on this psp then that will be a huge deterrent for me.

PSP Go is one sexy machine!!!!

But why is it so much more than the 3000? there have got to be some hidden improvements lol.

They most certainly will.  If they didn't, they'd have no reason to carry the device.

Retailers generally get less than $10 per console sold.  Sometimes they actually lose money per console sold, as is the case with the ps3, where after taking into account shippping costs from their warehouses to stores, GameStop loses ~20 cents per console sold.

Where retailers make their money is in software sales and (even moreso) sales of accessories.  New games running $50-60 garner retailers a profit of $8-12, while accessories like controllers can net them up to and above $30 (it's around $35 on a DS3, I believe).  (The non-existent margins on consoles and not-so-great margins on new games are why almost all dedicated game stores dabble in used goods, fyi.)

With the PSP Go!, retailers don't have software sales to fall back on, neither new or used.  Even accessories aren't a great market, given that people don't need to buy extra controllers or anything of that sort for a handheld.  Because of this, Sony has to increase retailer margins on the device significantly to give retailers any incentive to carry it.

Despite the already high price, many retailers are still threatening to not carry the device, going so far as to put the launch of the console in France in question.  According to my District Manager, GameStop Corporate was having a heated battle with Sony over this a number of months back.  Patapon 2 being sold through retailers via promotional code despite being a PlayStation Network title is a direct result of this battle.

Sony has to increase retailer margins on the PSP Go! considerably, or they'd have nobody selling the darn things.

And please, refrain from insulting another user's line of reasoning ("those opposing arguments seem a tad shallow").  It's even worse when you follow such a line with bold statements that are nothing more than baseless and ill-informed assumptions.  And yes, this last line was totally hypocritical.

I want the PsP GO! and will be waiting to get one but why is it more expensive then some consoles? I thought everyone and Sony realized that high priced gadgets that are considered "premium" don't get great launches or support. Why are they repeating their mistake?

They sadly have no choice in the matter.  The industry is at a crossroads.  Consumers, console manufacturers, and studios are trending towards a Digital Distribution model, but retailers are ready to fight tooth and nail to keep DD at bay, and as a result manufacturers have trouble reasonably pricing DD-only devices. 

Just look at iPods.  They aren't even limited strictly to DD, but a 16gb iPod still costs at least $200.

You could say that Sony shouldn't have gone with a DD-only model because of this, but DD has to begin taking over at some point, and high prices will accompany the transition.  Also, the PSP-3000 is still being sold, so if you don't like DD or care for the high price that accompanies a DD-centric device, you can always stick with the 3000 (or a 2000, which is what I'm doing).  Either way, having the PSP Go! available is better than not having it available, regardless the price.

it does look like a nice piece of hardware, but Sony must learn that it wont do well at $250. It must be lower than 200 for it to succeed.

I Just know I'm getting one coz i love it.