By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Sony - ShopTo: PSPgo "ALMOST DEAD" on arrival !!

I'm not a fan of DD only games, so I'm not too bothered by this.



Switch Code: SW-7377-9189-3397 -- Nintendo Network ID: theRepublic -- Steam ID: theRepublic

Now Playing
Switch - Super Mario Maker 2 (2019)
3DS - Phoenix Wright: Ace Attorney (Trilogy) (2005/2014)
Mobile - Yugioh Duel Links (2017)
Mobile - Super Mario Run (2017)
PC - Borderlands 2 (2012)
PC - Deep Rock Galactic (2020)

Around the Network

Is Sony going to let retailers sell vouchers for games though? Doesn't that instantly put any arguments that retailers can't sell games pointless?



PC gaming is better than console gaming. Always.     We are Anonymous, We are Legion    Kick-ass interview   Great Flash Series Here    Anime Ratings     Make and Play Please
Amazing discussion about being wrong
Official VGChartz Folding@Home Team #109453
 

lolsony

This is hilarious. XD



Wii/PC/DS Lite/PSP-2000 owner, shameless Nintendo and AMD fanboy.

My comp, as shown to the right (click for fullsize pic)

CPU: AMD Phenom II X6 1090T @ 3.2 GHz
Video Card: XFX 1 GB Radeon HD 5870
Memory: 8 GB A-Data DDR3-1600
Motherboard: ASUS M4A89GTD Pro/USB3
Primary Storage: OCZ Vertex 120 GB
Case: Cooler Master HAF-932
OS: Windows 7 Ultimate x64
Extra Storage: WD Caviar Black 640 GB,
WD Caviar Black 750 GB, WD Caviar Black 1 TB
Display: Triple ASUS 25.5" 1920x1200 monitors
Sound: HT Omega Striker 7.1 sound card,
Logitech X-540 5.1 speakers
Input: Logitech G5 mouse,
Microsoft Comfort Curve 2000 keyboard
Wii Friend Code: 2772 8804 2626 5138 Steam: jefforange89

The difference between the PSPGo and the other examples, is that the other examples have significant markups that make selling the base product profitable.

Gaming consoles, like computers, have very little markup and make the greater majority of their profit from the software.

Even the iPod has a good amount of profit built in plus in place of software there are tons of connections and 3rd party products which are marked up beyond belief.

PSPGo will be a very loss leader if taken in, unless Sony sells it differently than they do other consoles.



darthdevidem01 said:

ShopTo has empathised with European retailers boycotting PSPgo, and reckons the format "is almost dead before it has arrived".

Analyst Michael Pachter, on the other hand, thinks they're all being "foolish", and calls the entire situation "ridiculous".

"It's just silly for a retailer to say that they won't sell a big ticket gaming device because they can't sell the games. Consumer electronics stores sell refrigerators and not food, everyone sells iPods and not the music for them; this position is just ridiculous," Michael Pachter, analyst for investor Wedbush Morgan Securities, told Eurogamer.

"I think that it's foolish for a retailer to be selective about what they carry, unless they truly don't believe it will sell well."

A much better course of action, he argued, would be to buy limited stock and then re-order if appropriate. "Refusing to carry them subjects them to the risk that Sony will bypass them for Gran Turismo or Uncharted, in which case they lose," he said.

The ball began rolling when Dutch outlet Nedgame publicly opposed the PSPgo for being too expensive and for not featuring a UMD drive, thus providing no opportunity to sell games. And controlling all sales via PSN gives Sony a "monopoly" on software sales, argued the shop.

Media Markt, a German retail chain that spans Europe, took up a similar position, with Spanish and Italian (and no doubt other regions) outlets prohibited from selling the device.

ShopTo will not follow suit, but agrees with the sentiment. "We do have it listed on the site, but we are not concentrating any big marketing behind it," boss Igor Cipolletta told Eurogamer.

"Sony has decided to cut publishers and retailers for the software of the PSPgo and deal direct with developers, giving them a 70 per cent margin for any items sold on Sony PSN. I believe if they had lowered that to 50 or 60 per cent, and given the opportunity to online retailers, it would have enjoyed greater success and retailers would attempt to promote the console to the market."

Cipolletta, however, feels the damage may have already been done, and the format - which launches here on 1st October for £224.99 (€249.99) - will be a flop.

"I have the feeling that as a format it is almost dead before it has arrived, and it relies far too heavily on a customer base that is prepared to pay more for download content than the equivalent disc based product, and I suspect this market will soon dry up based on the technical limitations of the hardware," Cipolletta shared.

But, Pachter added, while retailers wield "some power" now, their foot-stamping won't be entertained for long.

"As far as the argument that 'it's about time' retailers received their comeuppance: I think that will occur soon enough anyway, as the large hard drives in the PS3 and 360 (and the larger ones coming) will encourage a greater number of downloads in the future," he offered.

"Retailers have to face the fact that games will be increasingly offered over Xbox Live and PlayStation Network, and cope with the outcome.

"To draw a line in the sand," Pachter said, "is wrong."

Sony, incidentally, has not responded comment on the matter.

http://www.eurogamer.net/articles/shopto-pspgo-almost-dead-after-boycotts

________________________________________

I would have to agree with shopto & disagree with pachter.

I also think PSP GO! will sell less than 2 - 3 million LTD

Im ready to bet with you my friend that it will ship at least 6 million untis untill the end of 2010

 

It wont be a massive burner like the Iphone but it will sell even if these small in size retailers dont want it to be a success... Gamestop, TRU and other big retail chains will all carry it and it will sell even at a high pricepoint.... still Im expecting a massive pricedrop during the first half of '10



Vote the Mayor for Mayor!

Around the Network

im quite hyped for the Go, its an awesome piece of hardware i love the digital possibilities, but it has a price tag that scares consumers like me off.

And there is little interest for shops in carrying or advertising this product.



scottie said:
Pachter is so dumb it makes my blood hurt. If all retailers sell the PSPgo at the price suggested by Sony, then they all lose money due to decreased game sales. If they (as retailers do with fridges) sell them at good profit margins, then they will have to sell above the suggested price, which would anger consumers a lot more than not selling it at all.

How can he be so dumb?

Pachter isn't stupid and calling someone stupid or dumb doesn't help anyone.



 

Tired of big government?
Want liberty in your lifetime?
Join us @
http://www.freestateproject.org

If it flops in japan it failed



 

mM

Stupid move from Shopto. I'll just go to the next shop and buy it. I'm not sure what they try to achieve. I'm not sure the story is true though, Eurogamer is not much more than a pathetic MS fanboy kid blog site nowadays. Only Edge can compare in stupidity.



You have to look at it from the retailer's perspective. You have limited funds to purchase new product.

You can sell the PSP Go and make say a 15% margin and no accessories or games. That means you've tied up $220 to make $30.

Or you can try to sell something else, say a PS3 that makes the same 15% margin. That means you pay $255 to make $45. However you will be able to sell more games and accessories for a 30% margin. It only costs $25 more investment to buy another PS3 rather than a PSP Go and you can sell more profitable product in the future.

Which do you think is the better investment?



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.