I can understand them being annoyed but by not stocking the PSPGo they risk hurting themselves more as Patcher pointed out. The change in entertainment distribution is something many high street stores are going to have to face in the near future, the PSPGo is just the start.

Maybe not. Some Japanese retailer was bitching pretty recently about having to sell PSN cards at cost.

It would be sad if a big player like Media Markt would go against progress.

I am planning on buying a PSPGo myself. It's much sleeker than the other model and not having to carry around game discs is a major pro for me. The PSP is a portable device, so IMO the Go approach makes absolute sense.

And yet the same chains have no qualms about selling iPhones...

Ultimately, there's only a few of them, and they are entitled to their choice, but they shouldn't be surprised if Sony penalise them for this in the future.

Pachter doesn't seem to understand the games retail market. Of course gaming only retailers are pissed about PSP Go-It's an over priced piece of hardware that cuts out the retailers share in their main profit driver, the games. A large number of hardware units might be sold at launch and during peak periods, but it is ultimately the games that sustain games retailers.

If I'm not mistaken, retailers make more profit off game sales (esp used) and very little off the devices themselves. Without games sales they have little reason to promote the PSPGo

Sony has the leverage in this situation. The retailers have been pushing MS and Sony in this direction with their continued support of used game sales. The PSPGo is just the first shot in a move to digital distribution. The retailers better figure out a way to work with the platform holders or they will be going out of business quicker than many expected.

Because every game sale on the PSPGo is one less physical copy available for trade in. This will start to build up as the platform develops (assuming it isn't a huge failure) combined with the increase in titles being offered over PSN and XBL. As developers see that they can maximise profits with digital distrubution they will begin to focus on that area and you will start to see games exclusively offered as digital content over physical media (just like VHS to DVD to Blu-Ray).

SONY can penalise retailers

but with Playstation brand strength & sales at an all time low, they need retailers more than the retailers need them imo.

I dont see the big problem here. iIts like a store that sells MP3 players yet can still sell CDs and CD players. Nobody boycott Apple with their Ipods lol