Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

June 12, 2009 -

Wedbush-Morgan analyst Michael Pachter has publicly apologized for saying that Sony was "ripping off the consumer" by setting a $249 price point on the PSP Go. The eminently quotable Pachter made the damning comment about the new handheld last week during an E3 segment of Bonus Round.

Apparently thinking better of his words in the interim, Pachter penned an apology yesterday as he debuted a new monthly column for IndustryGamers:

I sincerely regret the choice of words... where I said that Sony is "ripping off" the consumer by pricing the PSP Go at $249.99. I made a poor choice of words, and I do NOT think that Sony is doing anything nefarious in choosing their pricing strategy.

 

The company has the right to price its products at a point that they think is competitive, and has no obligation to sell products at lower than a competitive price. They have been subsidizing purchases of the PS3 since launch, to the tune of 22 million sold at a loss of $100 or more apiece (on average), so if they are able to make a profit on the PSP Go, more power to them. They are pricing at a point that positions the PSP Go competitively with the iPod Touch, and the PSP Go arguably has much more value than the Apple product. Notwithstanding my view that the price point is too high to generate more than a few million units sold, I really think my comment was unfair, and would appreciate your allowing me to clear the air...

GP: Pachter is a straight shooter and, apology notwithstanding, I believe he was speaking from the heart when he made his original comment. It's not too much of a stretch to imagine that there were a few angry phone calls from Sony HQ to Pachter between the airing of the "rip off" remark and yesterday's mea culpa.

But the fact is, Pachter got it right. Why does the PSP Go, which does away with the UMD drive assembly, cost $80 more than the current PSP-3000? There's no good reason, and gamers knew that even before Pachter spoke out. From the moment it was announced at E3, the PSP Go's $249 price point went over like the proverbial lead balloon.

Nor do I think much of the PS3 justification floated by Pachter in his retraction. Sony is losing money on the PS3, certainly, but that's no excuse to try to make a few million back by skinning consumers with the PSP Go. Personally, I love my PS3. But if Sony overdid the hardware, over-estimated their market and totally screwed up the worldwide launch, that's on them.


Comments

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

Pachter was dead on. PSP Go is too expensive for the reduction in features.

Don't get me wrong either. I own a PS3, I want Sony to do well, but not by charging more money for less hardware. Thats not the way to do it Sony.

On top of that... their new Sony Marketplace for the PSP is junk. I tried to download the new "Open Tee 2" for my son this weekend and the download is 748Mb and for some reason the PSP looses connection to the server at 25Mb every time I try to download it. (I had an empty 4Gb mem stick in the PSP so I had plenty of space to download it with.)

If this is what we can expect from a NON-UMD PSP download service.... yeah we need to keep the UMD's. Sony just can't do software as a service. They're not ready.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

Considering the fact that Sony is heading toward bankruptcy, I would think that they would charge something people could afford, so people would actually buy their products.  Look how well that worked out for Nintendo.

 

Freedom of speech means the freedom to say ANYTHING, so long as it is the truth. This does not exclude anything that might hurt someone's feelings.

--- With the first link, the chain is forged.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

I feel that the reaction is going to hurt Sony, and it had nothing to do with what Pachter said.

In this economic time when gamers themselves have to save some money, many of them would be turned away from the PSP Go and instead try and obtain an older version of the PSP.

And if the gamers don't buy it, it will be hard for any kid who relies on their parent's cash to get them one for Christmas at that high price point.

But at least it is not as big as the PS3's launch price.

For me, since I am on a budget, I will be trying to get a pre-owned PSP and try to trade in a few games I don't need anymore to make room for some good ones I saw from E3.

And there is only 3 PSP games I have planned to get too, 2 of them are Final Fantasy games that ONLY appear on the PSP.

So yeah, I will be better off getting an older PSP instead of the PSP Go, but it was Sony's call to make the PSP cost that much, and out of my budget sadly.

 

TBoneTony

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

Patcher issues an apology after stating something and a large portion of you guys automatically assume it is because Sony threatened him. Really?

It can't be that he realized Sony straight said they were looking for early adopters of the tech to get money back for their initial run that swayed him?

It can't be that Sony is keeping their current system out, supporting it with more bundled releases, and offering multiple ways to buy games on the system for people wanting digital or physical copies, thereby eliminating the need (even though 'need' doesn't apply here) to purchase the pricer new hardware?

Nope, it can't be that he thought about his comments and realized that he made Sony out to be money grabbing jerks when they are still giving people a cheap alternative to play games. They had to be evil and berate him because Sony is nothing but a corporation and corporations are damn evil things.

Then we have people like V4nI114 Ic3  that get mad at Sony for supporting an older console, which is completely mind boggling. In the second time in Sony's history of console making they are still supporting the people that haven't had the means to make the jump into the next gen of gaming, be for monetary reasons or what have you, and people call them stupid for it. They are making a profit for their games being sold on that console still AND people still have a cheaper alternative to HD consoles. Sony didn't just stop producing everything after a five year run and thereby force people to buy a new console or stop getting new content and they are the bad guys and idiots for doing so.

People are so willing to attack Sony when (I feel) they are the only one of the big three that are handling their transition correctly.

"

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

im sorry, but when 9 games come out in a given month from PS2 and only ONE comes out for PS3, no, they are beyond supporting an old console.  they are leaving the people that were actually willing to drop the 600 dollars or whatever on the PS3 in the cold and basically calling them stupid.  and this is only doubled by the fact that half the PS3s were not backwards compatible with PS2 games.

so, while you sit there and praise them for leaving people in the cold three years after a console launch, you will have to face a greater majority of people who are lucky to get a decent game on the console once every 3 months and are pissed off because they get the feeling they wasted their money. 

as for pachter, i really couldnt care less what his reason for retracting his statement is.  if he feels he spoke wrongly, that is all his opinion, but ONLY his.  it doesnt change the fact that i still think it is a ridiculous price point, considering it is the same price as a wii, and almost double that of the dsi.  but hey, yeah, its just good ole "i hate sony" syndrome right?  because people are banned from having opinions.

im sure you dont go out and blame oil companies for gas price hikes either, do you?  its all the consumers fault because they just think the oil companies arethe big bad corporations and corporations are evil things QQ.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

Maybe the massive wall of PS3 games available new versus the much smaller rack of new PS2 games available at every single store that carrys both varieties is a rare site in your neck of the woods?

Or are you talking about slim pickings at launch, which is something every single console has had, since...oh, I don't know, EVER.

$80 over the DSi is not double price, first off. Second, your argument against the pricing being a rip off against consumers is idiotic because a cheaper and fine alternative is available. They are not limiting your choices to ONLY the PSP Go are they? no. If they were to discontinue their current tech, announce plans to no longer support it in any way, and other such things, then you would have a leg to stand on. 

Bringing oil prices into this is completely irrelavent as it is an apple and oranges scenario. One being an (ultimately) frivilous expense for personal enjoyment whereas the other is a necessity for many people.

"

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

youre right, it is frivilous, just like your "DURR ME HATES CORPORATIONS!!!" rebuttal.

and this "massive wall of PS3 games" isnt really so massive when anyone actually stops and takes the time to look at what is really on the wall, and realizes that more than half of the games are over a year old, some even as old as 2.  and just because they are sitting in the new section, doesnt mean they are really new.  it just means they dont have anything else coming out to recycle the stock with so they keep them there because they dont want people to see how few games are actually released for the PS3.

but, i will in their defense say that they are getting better about that.  i mean, they are finally starting to get some sequels out.  too bad most of them take everything that was fun about the originals out and fuck the game all up (read: resistance 2).  and its a good thing they have those dynasty warriors games coming out every 2 weeks.  they need more reskins to artificially inflate selection.

i guess its a good thing hollywood churns out a million movies a year.  i can go and buy some blu ray movies so my PS3 isnt completely wasted.  and i guess its a good thing they include digital copy, so i can watch them on my PSP go when they stop churing out PS2 ports for it.

and i sure hope no one here is a gran turismo fan.  a 35 dollar demo can only hold out for so long.

but yeah, youre right.  sony has a fantastic business model.

 

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

I'm sorry... have you LISTENED to yourself?  Do you even own a PS3 or are you one of the many who claim ownership of the system just so you can claim disappointment with what's happening to it?  Because EVERYTHING about your rant tells me you're the kind of guy who pays just enough attention to PS3 so you can pretend to be relevant when you bitch about it.  The PS3 has never had a "one game a month" release schedule.  As for finding two year old games on store shelves for PS3, this would be an EXCELLENT complaint... if not for the 360, PSP, DS, Wii, and PS2 cases right next to them.  Hell, been to a PC game section recently?  Here's a hot tip for you, someone recently released a Fallout Trilogy (that ironically excludes Fallout 3 and instead thinks Tactics is the third game) repackaging that's now on store shelves at Wal-marts, Targets, and Best Buys the nation over.  Basically you've yet to type one valid complaint about the system.

Yes, launch was dark times as it always is.  But even during those times, we usually had a release a week for three of the four weeks.  Also, you might want to check your history because PS3 is actually quite light on the Musuo series releases compared to 360.  In general, I'd say you're just an ill informed asshole.  As I said, I severely doubt you're a PS3 owner but spend time obsessing over RSS feeds so you can pretend you own one.

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Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

yeah youre right.  i dont own a PS3.  i dont have the PSN username beliiiiiiiiiial.  ive never went to gamestop and noticed a decided lack of games worth checking out for the PS3.  all i do is sit here on the internet and troll sony fanbois cause they are so easy to.  hell, ive never even played a PS1 game, because i have never bought a console in my life.

i also havent played drakes fortune and thought it was a pretty kick ass game, and got pissed at myself for returning it after i beat it and bought the piece of fucking rotten ass burn out paradise.  or played the sorry ass san andreas knock off saints row 2.  or played dead space and was a little disappointed because the game was neither difficult or scary.  thankfully i still have valkyria chronicles, otherwise i would be pissed because i have literally nothing to do with the PS3 i dont own, because clearly if you own something you are automatically cut off from calling it out on its bullshit.

i mean, here i am thinking the PS3 was a gaming console.  im glad i didnt waste my money on it so i couldnt play the latest iteration of "HAI GUISE IM NOT HALO!!!"  man, that sure would have been silly of me.  but i mean, hey, i guess its a good thing we get games like bio shock and lost planet a year after they were fun.  maybe they will finally port infinite undiscovery and star ocean 4 in february of next year, and fix one bad translation and call it the "director's cut" so all the fanbois will flock to it and claim how superior it is to the 360 version.

but hey, PS3 has free online service and all the controllers are wireless and have a built in battery pack, and the PS3 has built-in wifi, so all sins are forgiven.  and maybe well see final fantasy 13 and uncharted 2 sometime before christmas 2011.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

My Fanboy Sense is tingling.

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I LIKE the fence. I get 2 groups to laugh at then.

-------------------------------------------------- I LIKE the fence. I get 2 groups to laugh at then.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

i still stick to my thought that maybe sony should stop churning  out PS2 games, and start putting them out on the PS3, and maybe then they would start to see more money from it.

seriously, 2 E3s after the system was launched and they were STILL touting PS2 launches more vigorously than PS3 titles?

i agree, if the PS3 is losing money for sony, it is entirely their own fault, and they shouldnt shaft people with a 250 dollar portable device.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

Exactly what kind of man is he? He made a great argument and is basically caving into Sony's demands. Say "hi" to Liksang when you hit the bottom Patcher.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

Ah yes, that old chestnut.  A company that was founded selling and installing piracy devices on all three console makers devices as well as selling illegal cable cards changes to a "legit" business.  Meanwhile when Nintendo says "please don't sell these games from America in Europe, here is your cease and desist," they comply.  Sony does the same thing except on a console facing shortages and having a 300% mark up and they refuse, they get suit, and don't bother to ever even show up in court, and Lik Sang is the downtrodden hero.

This song is seriously getting old.  Lik-Sang was a company founded on damaging the industry and price gouging importers in a way that would make Chips & Bits look like walmart.  Play-Asia is the much better import store.

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Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

Come on Mike show some backbone. Stand behind your opinions.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

I can't wrap my head around the argument, the hyperbole. The PSPGo is an entertainment device, so the price is relative to cost and their evaluation of cost and demand. As such, if the price is too high, consumers will not purchase it.

Given that there it is a revision of current and future-produced hardware, the value of the device may seem undeserving or otherwise of the price tag. It's the company's business, not the consumer's. Again, the latter votes with its wallet. If it really is a matter of 'too high for the sake of being high,' how does that matter? One could just as easily buy the cheaper hardware, as it is continuing production and support. They are not 'demanding' purchase or limiting the consumer's choice.

The hardware is set at a pricepoint to make the company money, 'overcharge' or no. The Wii is making a grand profit per console sold, as it was from launch. They were "in a business to make money," despite the Wii originally intended to be a peripheral for existing hardware, and made a (financially sound) business move.

The insatiable need to villify is borderline sensationalistic.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

I saw him talking about this in the GameTrailers show segment- I believe he's right in saying this.

The PSP Go has very few moving parts aside from the slide-out button area- no UMD drive. So that's one reduction of the labor involved in making them. 

At least 50% of the design and components have already been made. It's the PSP in a new shell, tailor made for digital distributed content. 16 GB of flash memory isn't at all that expensive.

So they're cutting costs with the removal of the UMD drive, while replacing it with flash memory. I don't know if it actually costs more to make a PSP Go, and know they need to sell to make a profit from the start. But I believe that if it was sold at $200, they would still make a profit for every unit sold.

GameSnooper

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

But if they sold it at $200, that means the PSP-300 bundles would HAVE to see a price drop.  And if the PSP bundles dropped in price, so too would the PSP-3000.  And with the massive stack of evidence supporting a cheaper PS3 Slim in September/August, you have to stop and ask yourself, how many price drops can one company afford for a holiday season?  Especially when retooling a factory line currently making PSP-3000s has to be retooled to make the dramatically different PSP Go.  I'm sure Chinese workers don't come in on the weekends to do that work for free, you know.

Plus, I hate to add a rumor but there is evidence to support it, what do you think will be the first million console pack-in?  Take PSP, first million got a UMD sampler and Spiderman 2.  Value of about $25.  Then look at PS3 and the inclusion of a $40 Ricky Bobby BluRay.  Personally, I think Sony is gonna pull a huge suprise and include GT Mobile already installed on launch unit PSP Gos.  Why else would that games release date actually have been announced first?  Of course this is all speculation on my part but still. 

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Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

i wonder how much sony paid him to back off his comments

 

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"Science asks how, and faith asks why"

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

Nothing.

I'm certain it was more threats against whomever publishes him in the form of reduced or cancelled advertising.

"Volume helps to get a point across but sharp teeth are better."

"Volume helps to get a point across but sharp teeth are better."

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

Another common misconception about Pachter.  He doesn't have to apologize to ANYONE.  Period.  No money hat, no advertisers, etc.  What he analyzes and predicts that WE see is not, actually, what he is paid for.  He is paid to analyze, track, and predict how tons of stocks in the electronics field will preform both over the short term and long term adn APPARENTLY he's very good at that job considering the money he makes and the fact that he, unlike most analysts at these kinds of jobs, has been quite stationary in his position for a while.

What WE read from Pachter is more often than not only what his company allows him to say.  He can give vague comments but that's it.  So everyone saying he's terrible at his job is speaking from a perspective of having basically a 1% clue on what his job really is.  Simple as that.  And because he works as an analusts at a STOCK TRADING firm, Sony, Nintendo, and Microsoft all have basically jack shit they can say or do against this man when he does something like this.

The much more likely scenario is Michael Pachter went home, saw how his quote was blowing up, looked at the video, and realized just how much of a douchenozzle he came off as.  And instead of letting that stand and having a quote from him be everybit as halfassed and fanboyish as 67% of the gamefaqs message boards, he retracted the statement.

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Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

I agree with all you say but for the part about compensation and longevity being an indicator of an analyst's ability. Most investment analysts are well-paid, even the ones with less than stellar track records. I'm not sure that a seven-figure salary on Wall Street neccessarily correlates to actual worth. Who doesn't make seven-plus figures on the Street? And analysts, even the ones with less than stellar track records and particularly those who analyze cutting-edge niche markets tend to have longevity built into their careers because of their expertise and knowledge acquired over the long-haul, notwithstanding that they've made more than their fair share of wrong calls. Banking and trading houses tend to keep them around even though they've made more than their fair share of wrong calls because of their acquired knowledge -- knowledge, which for many niche sectors, isn't easily or readily replaced.

A much more reliable indicator of an analyst's accuracy over time is had by reference to StarTime, which tracks the recommendations of analysts against actual stock performance and ranks analysts' performance in a particular sector or on a particular stock accordingly. If you do so, you'll see where Mr. Patcher's ranking, while certainly credible enough, ain't exactly at the top of his game.   

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

Hmmmmmmmmmmmm. With the salaries the Sony CEO's make......... Yeah fuck it, it's a rip off.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

From Dictionary.com

1. an act or instance of ripping off another or others; a theft, cheat, or swindle.
2. exploitation, esp. of those who cannot prevent or counter it.
3. a copy or imitation.
4. a person who rips off another or others; thief or swindler.

1: Is the PSP Go a theft, cheat, or swindle?  No.

2: Is the PSP Go exploiting customers in a way they cannot prevent or counter?  No.

3: Is the PSP Go a copy or imitation?  No, it is a new design from the original creators.

4: Is Sony thieving or swindling customers?  No.

 

Overpriced?  Sure.  A Rip off?  Not by definition.

As for this statement: "Why does the PSP Go, which does away with the UMD drive assembly, cost $80 more than the current PSP-3000? There's no good reason, and gamers knew that even before Pachter spoke out."

If the market will support it, it is reason enough.  A lot of things cost more than I am willing to pay, but as long as others will pay it then it is a good enough reason. 

If you don't like the price then don't buy the product.  That is how the free market works.  If it is overpriced the market will inform Sony of that fact via sales reports.

GameDrunk - Celebrating our two greatest passions.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

"From Dictionary.com"

So... argumentum ad dictionarium?

Let's be fair here: We all know what Pachter meant when he said the PSP Go was a rip-off, and we also know what he didn't mean. Whipping out the dictionary accomplishes nothing, since it's clear the dictionary definition was never intended to apply.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

Especially when the second definition says ESPECIALLY not EXCLUSIVELY. Sony ARE trying for exploitation, the fact that there is something consumers can do about it doesn't change that.

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I LIKE the fence. I get 2 groups to laugh at then.

-------------------------------------------------- I LIKE the fence. I get 2 groups to laugh at then.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

"If you don't like the price then don't buy the product.  That is how the free market works.  If it is overpriced the market will inform Sony of that fact via sales reports."

This is the most sensible thing that's been posted in response to this story.

It's a gaming device, a discretionary purchase for anyone. If you don't like the price, don't buy it.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

Looks like companies are still calling reviewers and whining anyone remember Gamestop's Giant Bomb ^_~

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

Where you been, Doc? I fully expected you to make an appearance in the article on Sen. Hatch and Canada. I know you've strong opinions on Canada. And 9/11. Well, I gotta go. Sabbath fast approches and I'm off to pray to the Jewish Heads of the ECA and ESA and the Lord-God-King Obama. Ciao.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

If Patcher is an industry analyst, why would he feel compelled to bow to pressure from a player in the industry on which he's responsibile for reporting? Aren't analysts supposed to be above that sort of pressure and independent of the industry players? Isn't he supposed to be reporting on the industry for the benefit of investors and not for the benefit of the industry players? Is he Wedbush-Morgan's analyst or Sony's public relations representative? He can't be both at the same time.

And why isn't Sony justified in trying to recoup lost profits on the PS3 through sales of the Go? Which business entity doesn't ever say to itself, "Well, we took an ass-whupping on sales of Product A, but, fret not, we'll make up for it on sales of Product B." Provided the consumers of Product B are willing to go (no pun intended) along with that plan by purchasing an "overpriced" Product B, then what's the problem? What if sales of the more profitable Product B are in fact being driven by prior sales of the less profitable Product A? That's nothing more than what's called a "loss leader" (take the hit on Product A in hopes of recouping the loss on Product B). Retailers do this all the time. Why can't Sony? To argue otherwise suggests that Products A and B are completely divorced from each other and collectively from the larger bottom line concerns of the company and, therefore, losses incurred by Product A are fixed for all time to Product A and that Product B should never be a used as a source of strengthening the company's overall bottom line. And that's just a ridiculous and unrealistic business model.  

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

An awful lot of people think the PS3 is overpriced, too.  Vote with your wallet: If you don't like the price, don't buy it.

I'm with Cheater87, I still like the idea of having a physical piece of media when I buy a game.  Probably the hoarder/collector in me.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

What a sissy.  If you're going to make a stand, don't back down on it because a company says to.  

As for the PSP Go, I like the idea, personally.  Mainly because those UMD discs are a bit heavy for traveling.  Then again, when I travel, I often play emulators (OF GAMES I ALREADY OWN) on my laptop, so I don't really care either way.  But I have to say, the PSP is a good handheld system, and I like the games for it.  Like FFVII, MG Portable Ops, most FF games, etc.  It'd be cool to be able to download them at will.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

Public image shaping and maintaing coems frist!

 


I am a criminal because I purchase media,I am a criminal because I use media, I am a criminal because I chose to own media..We shall remain criminals until Corporate stay's outside our bedrooms..


http://zippydsmlee.wordpress.com


Copyright infringement is nothing more than civil disobedience to a bad set of laws. Let's renegotiate them.

---

http://zippydsm.deviantart.com/

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

I don't like the idea of digital games so I'm going to stick with the PSP3000. Oh the shoutbox is still here. I think adblock plus is blocking it for some reason. Turn it off on the site to see the shoutbox.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

Think of it this way though... the psp is already out, and, with a sizable memory card, has all the capabilities of the Go (unless I'm missing something.)  They may also believe that they already have their core audience, and won't be getting tons of new users on the psp with this.  Perhaps sony is banking on not being able to sell too many based on that, and need to make up for their initial investment.

Does it cost less to make a go on a daily basis? yes.  Do they have to make back the initial $5,000,000 (arbitrarily chosen, just to give you an idea, if someone has the real numbers I'd love to hear them) investment, with less GO getting sold then original PSPs?

Thats just my logic. I don't blame them for pricing it high...  Doesn't mean I'll get one, just means I can understand that it could happen.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

The first time he says something based in fact rather than wild speculation and this is when he apologizes.  If only he'd do so for all the vastly incorrect predictions he's made, given how much ridiculous and undeserved ability analysts have to affect the fortunes of companies large and small.  I actually do agree with him on the pricing of the PSP Go and I also agree that it isn't Sony's intention to rip people off.  I just think they still don't understand how to price somethign competitively or that perhaps, gamers will see that a smaller unit with fewer parts should be worth less from a value position.

Parallax Abstraction
Ottawa, Ontario, Canada
blog.digital-lifeline.ca

Parallax Abstraction
Ottawa, Ontario, Canada

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

Agreed...he was probably pressured into making an apology.  The PSP Go IMHO is a ripoff.

 

BTW, what happened to the shoutbox?

 

Sortableturnip's Law: As an online discussion of video game violence grows longer, the probability of a comparison involving Jack Thompson approaches 1

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

The shoutbox had a change to it's URL and is getting caught by adblock plus, possibly other ad blockers as well.

-Gray17

-Gray17

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

Or that by "ripping off" he meant stealing. Like I said, the PSP Go is not a fraud, just over-priced.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

Why are you arguing that over-pricing a product isn't "ripping-off" the consumer? Let's say I sell umbrellas on a street corner. I buy them for a dollar and sell them for $1.50. But on days when it's pouring down rain and demand quadruples, I decide to price-gouge the consumer and jack my price up to $4.00 (a 300% profit rather than the usual 50% profit). There's no fraud involved in what I've done. But is it not nevertheless a "rip-off?"

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

Technically you are simply working with supply and demand. Supply and Demand allows for price to increase during times when Demand meets or exceeds supply, such as your umbrella salesman in a rain storm. It also allows for price to drop when demand falls below supply, such as selling them when it is not raining or during a drought.

But that is not a proper comarison to the PSP situation. Sony is raising the price with the impression that demand will shoot up for this new model. They are raising the price on projected demand increase. Not for an actual demand increase.

If when the PSP Go is released and demand does not meet the projected estimates, a price decrease will soon follow, most likely for the holidays.

To me, Sony has a lot of trouble dealing with reality when it comes to their gaming division. The PS1 and PS2 really inflated their ego so much that they have trouble seeing around it. That is why the PS3 is still the most expensive console on the market. That is why the PSP Go is $80 more expensive rather than only $20-30.

People expect to pay more for an upgrade on a current product, but not as much as Sony thinks.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

The reality is Sony made a huge mistake when they gave an engineer an unlimited budget and told him The Sky Is The Limit.  Engineers like Ken Kuturugi, in general, have the reality problem.  Whether you accept the PS3 price point or not is not a matter of Sony being out of touch with reality on their pricing.  Put simply, Sony really got farq'd by Kuturugi's design.  If they would have launched at $400, that's over $500 lost per machine.  Sony's fault?  Make it up in the games?  Not possible.  The attach rate of 360, currently the market leader, is still dramatically under the 39:1 ratio needed to accomidate those prices.  Scale back the system?  Too deep and far too late for that.  While PS3's launch price and current market price are stinging, consider the value you get for the price in conjunction with the fact that these companies, the bastards that they are, still exist solely to make money.  While Sony would really love if you play PS3, this shit isn't free.

Now take a look at Sonys OTHER problem platform, the PSP.  I say problem in the loosest of terms.  Because really, any platform that sells over 50 million cannot be called a failure.  Sorry to disappoint fanboys but the PSP was very successful.  And to top it all off, Sony really has no problems getting their installed base to play their games.  Now buying their games, that's the bitch of it altogether.  When Crisis Core was downloaded 12 times the number of copies they sold, that's the problem at it's root.  PSP-3000 was a good start towards trying to return viability to the market there but a DD focused PSP was what everyone and their brother was bitching and whining and begging for.  Everyone wanted to be rid of the UMDs at a time when 512MB of flash memory for PSP was literally $150.  Wanted a gig stick?  Better be willing to pay the same amount as you just did for the PSP itself.  Up until now, DD wasn't fiscally possible for PSP or DS.  They both aren't high end devices.

But now PSP Go is set to compete directly with iPhone and iTouch in that market while PSP 3000 holds the homefront.  But maybe, just maybe, Sony isn't ready to drop the price of the 3000 yet and admit it, if you had the choice between a PSP-3000 with a 4GB memory stick, a game, and a movie for the same price as a PSP Go with 16GB of memory... which would you choose?  To me, it's a no brainer.  And since the holiday bundles were already announced and priced, setting PSP Go at the competing price point with another bundle of theirs is pure ignorance.  Not matter what WE want, PSP Go at $200 would cannibalize PSP 3000 bundles.  Eventually the whole lineup will drop in price and if it's too rich for your blood, wait for that day.

Because, at the end of the day, it's really all about "How much are you willing to pay."  Apple has been overpricing their stuff for years and yet they have a fanbase, front of the line with each new product rollout, "Please sir, may I have another."  Nintendo is charging $250 for a suped up Gamecube.  Old arguement I know, but it even have the same main processor.  And do you really think Gibson Les Paul's are so expensive because they cost that much to make?  There will be a devout group at launch willing to pay the price.  Myself included.  Everyone else, just sit back, chill.  Because there has NEVER been a console that is not as good to own after launch as it was day 1.

Wall of Text Simulation- Insert coin to continue.

Wall of Text Simulation- Insert coin to continue.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

It is indeed, and the only objections would be semantical ones. (Is semantical even a real word?)

--------------------------------------------------

I LIKE the fence. I get 2 groups to laugh at then.

-------------------------------------------------- I LIKE the fence. I get 2 groups to laugh at then.

Re: Pachter Backs Off PSP Go "Rip Off" Comments... We Don't

So he wasn't apologizing for saying it was too high a price. He was apologizing for possibly implying that sony doesn't have the right to price their products how they want, or that there was some foul intent in the pricing.

 
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ZippyDSMleeWhy bother with an HD relese just repack the damn thing and promote it since it will play on the WIIU anyway....08/01/2014 - 7:04pm
Andrew EisenPlus, with Nintendo carrying the Wii U almost all by itself, it could help plug one of the unfortunately inevitable release schedule gaps.08/01/2014 - 3:23pm
Andrew EisenAn HD re-release would be cool though. It's a great game (and quite the looker, especially when up-rezzed) and more people should play it (the game had a limited release at a time when the Wii was all but dead an buried).08/01/2014 - 3:21pm
E. Zachary KnightSo no, people are not going to need to play the Wii game to undstand or enjoy the Wii U game.08/01/2014 - 1:27pm
E. Zachary KnightFrom what I understand, the two games have as much to do with eachother as Final Fantasy and Final Fantasy 2.08/01/2014 - 1:26pm
MaskedPixelanteIt's my secret hope that Nintendo announces Xenoblade HD to be released in the leadup to Xenoblade Chronicles X, or at least a mass market version of the first game so that people aren't going into this one blind.08/01/2014 - 12:40pm
PHX CorpI'm going to do a test stream later today, if anyone is intrested07/31/2014 - 2:40pm
Andrew EisenYes, I'm such a big Nintendo dork that I read Nintendo's quarterly financial reports.07/31/2014 - 2:09pm
Andrew EisenCool tidbit - Mario Kart 8 sales account for more than half of total Wii U software sales for the last quarter even though it was only available for the last third.07/31/2014 - 2:09pm
Andrew EisenStill a pretty cool promotion. Unfortunately for me, I'm not interested in purchasing Mario Kart 8 and I already owned or didn't want any of the free games on offer.07/31/2014 - 1:43pm
Andrew EisenInteresting that EU had 10 games to choose from while North America only had four.07/31/2014 - 1:41pm
MaskedPixelanteIt certainly worked, I probably would never have bought Mario Kart 8 if it didn't come with a free copy of Wind Waker HD.07/31/2014 - 1:14pm
Andrew EisenI imagine will see similar promotions like "Buy Mario Kart 8 get a download code for one of these specific games" but almost certainly not for all of its (however you would define) biggest releases.07/31/2014 - 11:24am
MaskedPixelanteI wonder if Nintendo is going to be doing "buy one get one free" promos for all their biggest releases going forward.07/31/2014 - 10:48am
MaskedPixelantehttp://www.mcvuk.com/news/read/special-report-retail-revolt-over-pc-code-strippers/013614007/31/2014 - 8:27am
ZippyDSMleeWouldn't they be able to afford and get done in a timely manner a general gba emluator for the 3DS? It seems to me if they want to make money off sales they need to do it.07/31/2014 - 7:25am
Sora-ChanAmbassador program, that's what I was looking for. Anyway the other games that have been made no longer exclusive to the early adopters got updates in their software. It'll only be a matter of time more than likely for the GBA to get the same treatment.07/31/2014 - 5:35am
Sora-ChanI might be naming it incorrectly when I say "founder" i mean the program for earlier adopters.07/31/2014 - 5:34am
Sora-Chanthe 3DS's GBA emulator was a rush job due to the founder program. No other GBA titles have been released on the 3DS yet. If/When they do get around to it, they'll more than likely update the emulation software.07/31/2014 - 5:32am
Zenemulator...it's not just a slap job that makes "some" work..they do it for each which is why they work so well. I would rather have the quality over just a slap job.07/30/2014 - 5:48pm
 

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