That's exactly what I argued earlier in this thread.

Makes sense to me.

It's not as simple as that. If there are two stores and one sells PSP GO and the other doesn't. A consumer that wants to purchase a PSP will most likely want to see all of their options. This consumer will end up going into the store with the PSP GO in order to compare. They may end up buying the PSP 3000, and you would still be able to sell games. They could also buy the PSP GO.

In terms of making an investment some products with a good margin might not sell which would make them a bad investment.

There's a good chance that someone with a PSP GO also has another console. Being able to increase traffic in the store selling PSP cards allows people to browse for anything else the store might sell.

quick CPR!

The iPod I see bringing people into the store, the PSP Go not so much.

A handheld that costs $250, when another version of thre same system is less than $200, has no physical media forcing you to download games at full price will be a flop...well Duh! Seriously Sony has gone off the reservation with the GO, biggest boneheaded move since they launched the PS3 at $600

the game market is changing - whilst I can see the retailers point there's also a lot of very good arguments in this post regarding used game market.

Nintendo has expanded the market for causal gamers and creating more retail sales whilst at the same time Sony naturally look to move into downloadable only for a more flexible, profitable model. Swings and roundabouts, the downloadable market may not be as big as the retailer market but some of my favourite games this generation have been downloadable only and it's only gonna grow.

The psp go may not be a huge hit overnight but developers will support it if gets a half decent install base and will trigger sales which will snowball.

I thought game retailers sold consoles for a loss or very little profit? A very high percentage of their profits if not all of it is from selling games and trade-ins/used games.

For an example I bought my Elite+Halo 3 bundle for £205 back in february this year from GAME and the official price from Microsoft was around £230-250? The price has just officialy come down to £199 with the latest price cut and you get less. No game or HDMI cable.

Good maybe this will stop GameSTOP from putting damn yellow labels all over the games.

Anyone against the psp go because of the fact that it is download only is a huge Ludite imo.
Seriously, the umd is a loud battery consuming piece of crap that is holding the psp back.

The last P is for portable. The PSP go is long overdue but it wont sell so well because $250 is crazy without any increase in performance, or hardware features like a camera or touch screen.

I expect the price to drop to $200 within 6 months.

If retail is cut from the picture, and cost-of-goods is also cut, the publishers will see revenue at nearly 2x the rate per unit sold.

Publishers will push HARD for digital distribution to work, trust me. And retail, likewise, will push hard back. This pushing war really has nothing to do with Sony directly. Already they've likely forced Sony to bump the price on the Go and DD software (so the retailers can make a decent profit) with threats of not carrying it, otherwise. That hurts the 3rd party publishers far more than it will ever hurt Sony, who will probably be selling the device for a small profit throughout its lifetime (the retail cut will be more though, for certain).

Politically, if you disagree with the actions of the middleman, and want to see the games industry thrive, great new games be made, and game prices eventually drop, you should buy a PSP Go out of principle (or an iPhone or Zune HD or DSi or somesuch).

If you adore the middleman (who can blame them for wanting in on some of your wallet action, really?), you should definately buy new UMDs/DS games/CDs from retailers, and then trade them in at retailers for some paltry credit on the next item you buy from them. Be sure to pay like 90% of the new price for used games though -- if you pay less, you might be endangering the profiteering of the store, and retailers might be forced to sell games at what digitally distributed games would probably cost without retail intervention and threats.

If only the retailers had chosen to share the obscene profits from used games... maybe they'd be much happier, the games industry would be healthy and vibrant, and DD wouldn't be looming so threateningly on the horizon.