Has Sony made a big mistake with the PSP Go?

By Mike Bantick
Thursday, 24 September 2009 04:58

Opinion and Analysis

It is only a week away from launch, but large gaming retailers are either on record or rumoured to be refusing to stock the PlayStation Portable Go.  The PSP Go contains no UMD disc support, relying on digital distribution predominantly for software sales, something that irks bricks-and-mortar stores such as EB Games in Australia.

October 1st is the date for a reboot of the PSP hardware.  Whilst the current generation PSP-3000 will continue to be on sale, it will be joined by the UMD format free PSPgo.

According to Sony:   “PSPgo is ideal for today’s on-the move consumers who prefer not to carry around disc-based content and are looking for on-demand entertainment. With the steady expansion of broadband network infrastructure, the number of users who download and enjoy digital entertainment content has been increasing remarkably. To address this growing trend, PSPgo replaces the UMD drive with 16GB of flash memory to store a variety of digital entertainment content, offering users unlimited possibilities of portable digital entertainment delivered through PlayStation®Network”

Pricing wise, in Australia the PSPgo will be positioned at AU$449.95, putting it at a AU$150 premium above the PSP-3000 and just AU$50 cheaper than a 250GB PS3 Slim.

And retailers seem upset by the PSPgo.  In Holland, the large Dutch video-game retailing chain Nedgame told Eurogamer   last week that it has decided not to carry the device.  As have several smaller Dutch retailers.

The company was quoted as being disappointed about the significant price difference between the PSP3000 and the PSPgo, but it is the software distribution model monopolised by Sony that is the real sticking point.

Brick-and-mortar retailers rely on software sales for the majority of their profits.  Being cut out of this process by the digital distribution model makes the valuable shelf space taken up by the PSPgo less appealing to stores.

In Australia, Kotaku is reporting a rumoured similar response from EB Games, one of this country’s largest video-game outlets.  According to the report, the EB Games website as well as internal retail computer system does not mention the PSPgo even this close to launch.

EB Games did not confirm the rumour, but a SCE Australia spokesperson commented:  “In relation to our business and the launch of PSPgo, we are already experiencing solid support for launch day on October 1 in Australia. Retail support of the PSP platform, includes both PSP-3000 and PSPgo. Many retailers will choose to range both PSP models side-by-side, as we continue to offer expanded choice for the consumer for the handheld device platform. As with any new product, there will be continued discussions with retail partners to continue to expand reach over time in line with growth of the entire PSP platform.

SCE are also committed to delivering more PSP content including strong IPs like Gran Turismo and LittleBigPlanet this year, plus increased networked services and applications for the platform such as the Digital Reader service which will launch with Digital Comics this December. In 2010 users will also be able to enjoy access to a Video Delivery Service.”

Most likely this to-and-fro are the opening shots in the inevitable war between virtual and real retailing. It was also inevitable that the most likely battlefield would be video-games, with the PC platform being a veteran of declining store shelf space thanks to digital distribution and now console platforms continuing their push into the cheaper and less pirat-populated waters of non-physical formats.

Still, it is not much use sailing these waters if you cannot sell ships in the first place, I feel my metaphor failing me, but Sony may need to sweeten the retailers deal for the PSPgo, ensuring sufficient numbers get under the consumer nose.