PSP Go immediate price drop but sales flop

Mike Bantick
Tuesday, 20 October 2009 09:56

Your IT - Entertainment

The PSP Go is a vanguard for dedicated game machines utilising digital distribution of software.  But despite an immediate price cut of AU$50, sales of the device since launce have been sluggish at best.

It may be lighter, tighter and quieter than its predecessor, but it looks like – as many predicted – the Sony PSP Go may be a flop.

Whilst it is still early days, a report from today’s The Age indicates that the public is not taking to the idea of an AU$450 hand held digital distribution gaming device just yet.

An unnamed source from industry sales analyst company Gfk puts sales of the PSP Go in the Australian market as just on 1000 units in its first week of sales.

Launched on October 1st, these figures contrast with the new PS3 Slim which has notched up 10,000 units per week since its own launch on September 3rd.

Much of the problem can simply be attributed to economics and choice, the UMD (Sony’s propriety disc system for the original Play Station Portable) equipped PSP 3000 is also on sale against the PSP Go, but clocks in for under AU$300, and importantly can also utilise the same digital download service that is the core of the PSP Go experience.

Similarly the PSP’s big brother, the PS3 is only AU$50 more than the PSP Go’s original asking price, making it an attractive option to those looking to get into PlayStation gaming.  I say ‘original asking price’, as today in Sony Central stores this has been already cut from AU$450 to AU$399.  This may be a surprise to the neighbouring Dick Smith Electronic store still trying to sell the Go at the original price.

The digital distribution model of the PSP Go is already a sore point for retailers relying on software sales to justify carrying the hardware.  Larger retailers such as EB Games have already refused to carry the device, and cutting the margin on the hardware may convince other stores to remove the model from shelves.

According to the Age report Michael Ephraim, Sony Computer Entertainment Australia and New Zealand managing director admits Sony has work to do; "Clearly we haven't done massive numbers but it's not something that we're concerned about ... because there are still some issues that we need to work through," Ephraim said.