Chris Kohler's Game | Life blog has a great Q&A session with Wedbush Morgan's Michael Pachter. When the analyst was asked about the widening gap between DS and PSP, he had this to say: "I don't think Sony will close the gap, and don't think it is important that they do so. Nintendo has over 20 million loyal GBA owners, and we should expect them to dominate the category that they invented. Sony is late to the handheld game, has tried to approach the market from an older demographic, and is just now trying to beef up more kid-friendly content to appeal to 13-17 year olds. I don't think that the gap matters at all, so long as Sony makes money. I also believe that price elasticity of demand dictates that the lower priced product will sell more units. That's why there are more Fords than Maseratis."While Sony will most likely never be number one this generation, they've gone a long way in changing the handheld marketplace. As long as people continue to buy the system and continue to buy the games, the platform will remain more than viable.
[Via AMN]













Reader Comments (Page 1 of 1)
4-07-2007 @ 11:35PM
NoBullet said...
Whoa whoa, Nintendo didnt create handheld gaming. They weren't even the first to make a portable with removable game carts, it was Mattel. Even before that there were LED handheld games.
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4-07-2007 @ 11:37PM
NoBullet said...
I meant Milton Bradley, not Mattel.
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4-08-2007 @ 12:48AM
Erik said...
I think he meant create as in create a market, not create a product. For example, Mp3 players were out prior to the iPod, yet ask anyone to tell you about an Mp3 player and I promise iPod will come up within the first few minutes. Apple created the Mp3 market, but they didn't create the first player. And no, I'm not an Apple fanboy by any means, but I do give credit where due. The Gameboy put consoles in the hands of damn near every kid I knew growing up. Hell, my mom bought one to play Tetris at work. There was no market prior to the Gameboy. That's what Nintendo created.
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4-08-2007 @ 1:19AM
Ryoga Vee said...
Actually... S3, which later became SonicBlue created the MP3 market. And held dominance for a very long time. iPod and apple may be the market now, but no doubt that Diamond / S3 / SonicBlue created it.
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4-08-2007 @ 1:20AM
pershing333 said...
http://boards2.sega.com/sega_board/viewtopic.php?t=69652
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4-08-2007 @ 1:27AM
Pershing121 said...
here is a quote from there:
"well the made the 2-d sprites better for PSP, has the dungeon from the advance version, is in widescreen and has a gallery mode.
Porting these cassics was a good idea the first 3 times they did it."
"Damn.....for a second there I though I saw FF10....
Is it too much to ask for console grade games on PSP?"
and
"Yeah, really. I thought that thing was supposed to bring the console experience to the palms or your hands. They should at least be remaking the PS1 FFs."
btw some posts form neogaff:
http://www.neogaf.com/forum/showthread.php?t=149783
" The PSP is a great multifunction device, for us gadget freaks, it does alot from playing MP3's,Video, web browsing, and maybe GPS functionality,PLEASE...oh and it plays games. Thats it's problem, the games seem to come last EVEN in the commercials for it.Developers are understandable upset Sony isn't pushing the gaming aspect more.To tell you the truth, i bought one TODAY and have to say My ideas for this thing have gaming kinda low on the list."
" This was the handheld PlayStation. It had PS2 level games, heavy commitments from virtually every majore (and minor) 3rd party publisher, a new movie format backed by virtually every major Hollywood studio and was going up against a mutated, double screened N64 you touched to play with.... for only $50-100 more. Tell me, what sort of expectations would've been realistic in 2004? What did you expect actually?"
" EGA makes for a good example, they've even had a big PSP push this year with both new experimental IPs and old IP revivals... but they're all outsourced to tiny western firms. SEGA basically killed their own internal PSP R&D, shifting virtually all resources over to DS.
Same thing's happening within a lot of Japanese firms, there's been a conscious near-marketwide shift to scale back PSP efforts to mainly cheapo ports and finishing off previously announced games, while focusing new R&D clearly on DS or mobiles. There's the potential here for a domino effect too, as Japan's pretty easily the leader for handheld game R&D, and Japanese trends will undoubtedly have consequences in western markets..."
" On the flipside, PSP's already had a far, far more ambitious push than GameCube ever saw from developers, publishers, retail, media, hollywood and really the industry at large. If GameCube had gotten this sort of unconditional upfront support from virtual all sectors of the industry, it'd probably have moved 20 million units in 2 years too. Same goes for Xbox... PSP had branding, positioning and support advantages those platforms could've only dreamed of.
Really, the only console last gen that enjoyed a similarly scaled push to PSP, was PS2. And that's probably the console it should be compared with mainly."
" PSP in hardware I would classify as a success. But to developers I think the handhelds a failure. PSP development costs are obviously far more than DS and the games are all selling pretty much horribly now. PSP games started off selling good but now not even the almighty GTA can sell good(The only thing that does is Monster Hunter in Japan). It's not even a GCN situation where everything besides Sonic and Nintendo games sell like crap. Everything except Monster Hunter sells like crap now.
I know multiple people in real life that have a PSP. Not a single one of them use it to play games. Sony succeeded in making a multimedia portable, the only problem is now nobody wants the games."
also read this and laugh (its form a single user who staretd those topics):
http://boards.gamefaqs.com/gfaqs/genmessage.php?board=928010&topic=32987249
http://boards.gamefaqs.com/gfaqs/genmessage.php?board=928010&topic=32736452
http://boards.gamefaqs.com/gfaqs/genmessage.php?board=928010&topic=31441094
http://boards.gamefaqs.com/gfaqs/genmessage.php?board=928010&topic=31931708
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4-08-2007 @ 2:13AM
Erik said...
Ryoga Vee - you missed my point entirely. There was no Mp3 market prior to the iPod. Yes, I had 3 other Mp3 players before Apple came out, but those of us who had one were in the minority. Young girls, mothers, and businessmen weren't walking around with earbuds hooked up to a 32MB player. It's the same way that AOL (AIM) made computers 'cool' and what Myspace dud to socal networks (even if it wasn't the first one).
Apple brought Mo3 players into the mainstream.
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4-08-2007 @ 2:29AM
PSP Fan said...
It is hard to tell, a year ago would anyone believe that WII would be outselling the Xbox360 and PS3??
I don't think the term NEVER can really ever be applied where as videogames computers and electronics in general are concerned. The PSP is gaining ground and will gain momentum with the latest price drop and the continuance of true console quality gaming on the go. This incarnation of the PSP might not be number one, but we are 25 million strong and when the next PSP comes out they won't be starting from scratch userbase wise we will be looking and so will the DS userbase. I am glad that Sony has not gone the Nintendo route and rush to release another hand held, man it's been over a year NINTENDO where is your next hand held?? You know one you rush out the door and then release a little better version of the same thing a short while later.
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4-08-2007 @ 3:38AM
symphony1125 said...
very true...
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4-08-2007 @ 5:34AM
Alien said...
Well 25 million soled in 2 years is far by failure . If the Xbox would have soled that much , they would still have games on it :P
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4-08-2007 @ 3:49PM
mccomber said...
I think the biggest thing to realize is they are two different markets for the most part. I bought a psp over a ds because of the games that were coming to it, not just in scale but in content. I can't honestly think of too many DS games I'd even be interested in beyond Mario, whereas on the PSP I've got Metal Gear PO, Killzone, Daxter and Syphon Filter sitting on my coffe table right now, and Loco Roco in the PSP itself.
The fact that the PSP still exists and sells at all is a huge thing, because the handheld market is one that Nintendo isn't just #1 in, but has absolutely dominated since the original gameboy. Sony is actually competing with Nintendo, which is something that few others can ever claim to have done.
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4-08-2007 @ 4:44PM
Mr Khan said...
But, question
IS Sony actually making money on the PSP? They must be at $250 to be able to support a price drop, but will they then at $170? I've never heard whether or not they were profiting off of it
But yeah, i don't think many people, except some of us Nintendo fanboys (not me, though) predicted the DS's dominance. PSP had the kind of brand-name strength that allowed the PS2 to kill the Dreamcast, despite some obvious inferiorities right out of the gate. Just like few people could've predicted that the Wii would sell so well based off of a pack-in and a GameCube port, (and i bet a few will be picked up for a GC leftover, Super Paper Mario).
Occassionally there actually ARE market upsets, and it's funny to watch people (whatever their allegience) be taken off guard...
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4-09-2007 @ 7:42AM
txa1265 said...
I keep reading 'the PSP is gaining ground' ... but it isn't, of course. Actual math and numbers shows that every day since the DS Lite was introduced, the PSP has been losing market share worldwide.
That is very different than being a failure, but when you argue a point, if your facts are wrong, then your overall validity is null and void (in actual logical arguments, no the internet)
I think that the mind-set regarding the PSP is changing from a 'failed to take over the handheld market' to successful 2nd player in the handheld space.
That is fine - so long as good games keep coming.
Another thought - one reason I always pound on the controls and load times in my game reviews as well as comments here is because I don't want people to ever think that taking 30 seconds for a portable game system to 'wake up' is acceptable.
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