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Retail

Price not a barrier for new PSP Go - House

Tue 09 Jun 2009 7:32am GMT / 3:32am EDT / 12:32am PDT
RetailHardware

Europe not as price-driven as other regions, says new CEO

Sony Computer Entertainment

Sony Computer Entertainment is a Japanese videogame company specialising in a variety of areas in the...

playstation.com

Sony's newly appointed president and CEO of Europe has said that he doesn't believe the price of the PSP Go will harm sales on release later this year.

Asked whether the EUR 249 price may act as a barrier to purchase in a repeat of the slow uptake that hampered the luxury-priced PlayStation 3, House said that Europe wasn't traditionally a price driven market.

"I don't think so," he offered, admitting, "If it's cheaper would we sell more? The answer would probably be yes."

House said that consumers understand the hardware is worth the asking price, allowing them to buy into a system that will be supported for at least ten years, and allows easy access to content through a convenient digital network.

"I think on PlayStation 3, and the potential with an extension of PSP, we've got an opportunity to go even further on that. The overall value proposition which, by the way, European consumers get very, very well, I don't think they are as price driven as other markets.

"So the overall value proposition is really strong and trends towards that lifecycle. And then you've got for the first time a networked community for the business and the strength that implies. That's a huge factor in retaining people for a longer lifecycle with the product they have, because now they've bought into not just a packaged media relationship with games, but they're bought into a community that they're sharing with people and they're interacting with."

House refused to discuss a UK price for the system, even though the hardware has been given an RRP for Europe and North America, stating only that “We'll give it full and due consideration at the price point that we think is right for the business model and the consumer.”

The full interview with Andrew House, where he discusses the new PSP Go in detail, can be read here.

4 Comments

Alex Wright-Manning Talent Officer, Playground Games

172 2 0.0
Well, well. What a surprise.

“We'll give it full and due consideration at the price point that we think is right for the business model and the consumer.”

In laymen's terms; we'll release it in the UK at the highest price point we feel we can get away with.

I'm increasingly getting worried about Sony's seeming blinkered attitude towards their consumers, particularly with the economic climate as it is. I love the the great gaming memories and moments that Sony and it's Playstation brand have given me over the years, and they are rightly regarded as one of the most influential and innovative players in the industry. However you can only wring so much out of an ailing brand, and their insistence on pricing themselves at the very top of their market will only serve to push consumers into the arms of their more competitively priced rivals.

With the PSP Go being purely a digital download platform, Sony will save millions in manufacturing and distribution costs, surely they should take a hit on the retail price in order to increase take up to what will be an almost captive market - due to the reliance on the Playstation Network for new titles.

I'm sure i'll get the 'it's a business, we're here to make money' responses, but surely a 'speculate to accumlate' attitude would be more prudent in these difficult times?

Posted:5 years ago

#1

Alexander Cederholm Editor-in-Chief, GAMEcore.se

42 0 0.0
The PSP GO! may be a 100% digital plattform but don't forget that Sony also told us that everything that get's released from now on (or the Go:s release) will come out on both disc and download. They are not stopping making UMD and having their wares on shelves.

Posted:5 years ago

#2

Franck Sauer Creative / Tech Art Director, Fresh3d

63 9 0.1
I suspect they want to make good profits on hardware this time.
Better get some margin on fewer sales than no margin with many sales.
In the end it's just a matter of balance and they will probably adjust a few month down the line according to the consumer response and their own business plan.
I think the form factor alone will attract its fair share of consumer for a few month, then they will have enough margin to move on to other target groups and make other price anouncements.

Posted:5 years ago

#3

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,287 2,507 1.1
Franck nailed it. The point of multiple SKU's is such that the higher end models pad the margins that restricted or completely a loss from the lower end SKU's. With Sony and their PS brand at the moment, this idea is spread among many products. The PSP Go is going to sell at a premium to help offset losses still being accrued by the PS3.

Had the PS3 hardware been at profitable levels by now then we might have seen a lower price point on the PSP Go.


Something that bugged me though was the "10 year plan" PR bit being tossed in for the PSP Go. Consoles/portables are supported for as long as the market wants them (or for a long as it is financially feasible) so the whole PR "10 year plan" bit hurts the brain every time I read it.

Posted:5 years ago

#4

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