Analysts, for some reason or another, are important to the industry. Colin Sebastian of Lazard Capital Markets commented on Sony's recent price drop of the machine, saying it will give the platform an important "shot in the arm." As the first official price cut since the product's launch more than two years ago, marketing will be crucial. Thankfully, according to Sebastian, Sony has a plan: "Sony is planning to support the pricing move with a new print and online marketing campaign targeted at young adults and teens." Let's hope it's better than what we've seen so far.
Price is one of the sole detriments to PSP's performance. With a lower price, Sebastian notes, the system should sell much better: "We note that a Wal-Mart promotion on Black Friday last year generated significant sales volume for the PSP at a discounted price of $169, providing one indication of potential consumer demand. We also believe the potential release of Gran Turismo for the PSP in 2007 could further boost unit sales." Wait? Did he mention Gran Turismo? Isn't that game canceled? Or maybe it's not. Let's hope that he knows something we don't.
The battle's far from over, the analyst reminds us. "It is too early to conclude whether Sony's pricing action will cause game developers to increase the pipeline of new PSP titles." Certainly, the price drop is encouraging, but "at the new $169 price, we note that the PSP is still $40 higher than Nintendo's DS."
[Via GameDaily]
Reader Comments (Page 1 of 1)
4-03-2007 @ 1:10PM
Alien said...
Well GT4m wasnt really canceled ... never . Whit that and GoW in EU/US and Crisis Core in Jap. the PSP could hit some good selling numbers this year :D
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4-03-2007 @ 1:52PM
Joe said...
I think it would be awesome if Sony does bring out Gran Turismo for the PSP and it becomes one of the first game's to use the PSN (PlayStationNetwork)for the PSP. I think if PSN is to work with PSP games there would be a greater chance Infrastructure would be added more into the games. Plus it would allow for more downloads onto the games.
So if Gran Turismo comes out with Infrastructure I will be thrilled. Plus there are other great games out there too. So I think 07 looks like it will be another great year for the PSP.
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4-03-2007 @ 2:03PM
Raz said...
I don't know why but GTMobile reminds me of Duke Nukem :S
GTMobile should change to GTForever :P
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4-03-2007 @ 2:15PM
jay said...
GT Mobile Infrastructure would also help Polyphony test out online functionality before the release of GT5. So it would be smart for them to hook us up with GT Mobile.
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4-03-2007 @ 2:25PM
drivendriver said...
My guess is that Colin slept through Apr. 1 and now he is trying to make up for it.
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4-03-2007 @ 2:51PM
Kabz said...
How much profit is sony really making out of each PSP? Seriously if someone out there can make a website with all the secrets (with facts) of the actual production costs of each system, it could lead to a consumer boycott, which could leave them to lowering the price even more. Cous i an't got enough money to buy a ps3.
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4-03-2007 @ 2:59PM
Andrew Yoon said...
PSPs weren't cheap to manufacture two years ago: Sony was selling them at a loss. Now, we think they're making money off each system. But why not? Nintendo makes a ton of money by selling nearly ancient tech in the DS. Sony should be allowed to make money too, no?
Also, yes--the PS3 is expensive. But we know that Sony's losing hundreds of dollars for each one made. That's an incredible value to the consumer. It's true that most of us can't afford one, but the lucky few that can should be thankful that Sony's subsidizing the costs for us.
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4-03-2007 @ 3:11PM
txa1265 said...
OK, much has been made of the Walmart deal and its' impact on the sales of the PSP. But I call BS on that, because:
- The PSP had >200% increase Oct->Nov in sales, which be really good.
- The DS had ~175% increase and sold 2.25x the PSP.
- The GBA had a *300*% increase and sold ~1.75x the PSP.
So the price cut special pushed units, but *PROPORTIONATELY LESS* than the other two handhelds. In other words, while having a sales run that sparked articles, the PSP *LOST* market share!
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4-03-2007 @ 3:28PM
Raz said...
Sony should do a new looking PS2 change its name to "Poo" put some SIXAXIS on it and start selling the thing at 100 bucks "WOW! Poo can play all PS1&PS2 games and as a bonus you win a revolutionary technology that makes The Sony Poo run games of old systems like NES/SNES/Genesis/GB/GBC! It's ALL about gameplay!". Who knows, maybe that way people would stop bitching at Sony...
Hmm...
PSP=$169
Wii=$250
PSP=All VC games plus PS1/NeoGeo/CPS/CPS2, better media support and of course PSP games, everything on the go...
Wii=Graphics a little better, VC games plus NGC and Wiimote...
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4-04-2007 @ 6:58AM
Nik said...
$30 is a weak price drop. At $169 the PSP is still way too much for the mainstream to consider picking up the handheld the way they have with the DS. Especially when you consider the need for at least a $20 memory card (I'm sure some of you could find a cheaper 32MB card but you average consumer wouldn't) plus games that are one average $10 more than the DS.
Put the 32MB memory card back in the box (it wouldn't cost Sony a damn thing) and drop the whole package to $149. Right now the only people buying the PSP are existing gamers, at this price point the system will look like a viable option for new gamers compared to the DS.
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4-04-2007 @ 9:33AM
Kade Storm said...
Yes, forty dollars higher than the DS, and beyond twice the horse power and technological limit.
Sure, DS is "cheaper", but relative to the DS, the PSP is the console that is underpriced.
As for analysts - they're no rocket scientists. They're observers, which means that essentially any fanboy--who'd be willing to set aside his/her rampant unintelligent partisanship--could become just as good an analyst. Hell, I blame analysts for promoting this annoying competition within the handheld community. To me, the PSP is something I'd pitch against the homeconsoles rather than the DS, but whatever.
Oh, and I'd seriously go for the 'POO'. Hell, make it slightly portable (Like a better tweaked version of what Ben Heck created) and I'll be all for the damned thing.
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4-05-2007 @ 12:10PM
thomaswit said...
Why is everyone comparing the price to the DS. why don't people jump all over nintendo for how expensive the DS is, for what you get it should cost under $100. The PSP is so rich with features, it's a steal at $169.00.
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