griffinA on 10 November 2009
Procrastinato said:
PSP software also tends to cost more (a fair amount more, even) than DS software, which generally tends to yield more profit/unit, along with more revenue/unit.
The PSP is doing fine. Its a premium handheld -- its ridiculous to expect it to hold even 50% marketshare relative to a cheaper handheld like the DS, or to have an attach rate equal to the cheaper-software DS. It fits very well into the space that Nintendo didn't really occupy with the DS.
If the PSP held even around 40% markshare, its net software profits might equal or exceed that of the DS, even with the current attach rate, and Nintendo would be seriously considering releasing a new handheld to compete. |
The argument that the PSP is expensive and therefore sells less than the DS is becoming less and less tenable as the PSP becomes cheaper. Right now the PSP-3000 and the DSi are the same price. Granted, there is the cheaper DS lite, but no one buys the DS lite anymore. It seems that DS customers don't mind paying the extra money for the handheld.
"Pier was a chef, a gifted and respected chef who made millions selling his dishes to the residents of New York City and Boston, he even had a famous jingle playing in those cities that everyone knew by heart. He also had a restaurant in Los Angeles, but not expecting LA to have such a massive population he only used his name on that restaurant and left it to his least capable and cheapest chefs. While his New York restaurant sold kobe beef for $100 and his Boston restaurant sold lobster for $50, his LA restaurant sold cheap hotdogs for $30. Initially these hot dogs sold fairly well because residents of los angeles were starving for good food and hoped that the famous name would denote a high quality, but most were disappointed with what they ate. Seeing the success of his cheap hot dogs in LA, Pier thought "why bother giving Los Angeles quality meats when I can oversell them on cheap hotdogs forever, and since I don't care about the product anyways, why bother advertising them? So Pier continued to only sell cheap hotdogs in LA and was surprised to see that they no longer sold. Pier's conclusion? Residents of Los Angeles don't like food."
"The so-called "hardcore" gamer is a marketing brainwashed, innovation shunting, self-righteous idiot who pays videogame makers far too much money than what is delivered."
