Will Psp's Q4 2006 Price Cuts Force Gph To Match A Cut For The Gp2

[telegramguy]

http://money.cnn.com/2006/08/11/commentary...dex.htm?cnn=yes

If Sony is to drop US$50 from the PSP, it would finally make the GP2X (US$179) the most expensive contemporary handheld among GBA, DS, PSP and GP32.

Now, sure if you add in memory sticks prices compared to cheaper SD cards it comes down but a drop in a new PSP's price would also make used PSPs with 1.5 firmware (or downgraded ones) cheaper at traditional U.S. game outlets like Gamestop / EB Games.

If the GP2X drops $30-50 to match, then that'll also rock!

 

[xinfernoofdantex]

Gamepark doesn't have the money to do that

 

[Epicenter]

Sony can afford to sell their hardware at a loss and make up for it by charging game developers huge licensing fees. I doubt GPH will drop their prices on the GP2X unless the hardware becomes significantly cheaper for them to make; which probably doesn't happen for a long time given the money-grubbing nature of the SoC maker (Magiceyes.)

 

[Kensupen]

Sony already sells the PSP at a loss. They would have to sell for ~$400 for them to break even. The fact that they do sell them at a loss is a common thing. Just how much of a loss is the question. Nintendo, Sega and Sony have always sold consoles at a loss. The money is in the software.

-Kensupen

 

[PSyMastR]

Nintendo, Sega and Sony have always sold consoles at a loss. The money is in the software.

-Kensupen

Nintendo doesn't sell at a loss.

 

[Khayman]

Nintendo, Sega and Sony have always sold consoles at a loss. The money is in the software.

-Kensupen

Nintendo doesn't sell at a loss.

Yes they are!

 

[Magnulus]

Back in the day, when 199 USD was a damn lot of money, I suppose maybe they made money on their consoles, because the electronics market wasn't as harsh as it is now. Nowadays, neither the console makers nor the retailers make any kind of real money on the machines, but rather rely on software and accesory sales to earn money.

I hardly see how Nintendo can sell the Wii at anything but a loss when it's estimated to cost less than 250 USD.

 

[telegramguy]

Gamepark doesn't have the money to do that

Yeah, but even if GPH loses money on every unit they sell, they can easily make up for it through volume. Geez, it's like ECON101.

 

[sam fisher]

Gamepark doesn't have the money to do that

Yeah, but even if GPH loses money on every unit they sell, they can easily make up for it through volume. Geez, it's like ECON101.

But that would mean that the more they sell, the more money they lose...

 

[Magnulus]

Today on E-con 101:
How pretending to be an African Prince can earn you lots and lots of cash!

 

[sehs33]

When anyone estimates a unit build cost, they come with a very high figure, trust me, it costs them much less than that, mass production is waaaaaaaay cheaper than you all think, if those companies lose money on the hardware and get it back on the software, they would have never sold a unit in countries that suffer from software piracy, where I live it's almost impossible to see original PS2 or GBA games, unless if it was bundled with the hardware or with an accessory (light gun or so).

Pricing policies differ a lot between GPH and Sony/Nintendo, the price of a PSP or DS covers the hardware, marketing, R&D, shipping AND PROFIT, I am sure that the profit margin is decreasing than it was a decade ago, but those corporates are not crazy, selling hardware at loss is the same as lending someone cash, risking that he will never pay it back.

Last but not least, the average number of titles each PSX owner bought was 3 (Am sure of the figure, but it has been a very long time that I can't find its source), do you think that the price of these games will make Sony that success it developed PS2 and decided to develop PS3?

 

[darkman]

I don't think that GPH sees Sony or Nintendo as competition. The GP2X is in a class of its own. You really can't even begin to compare the GP2X to either of those systems. The Sony system is a Multimedia system. Nintendo's systems are game systems. The GP2X is like a portable computer.

 

[JaqMs]

Yes, except now the PSP can do most things the GP2X can, and it has a large library commercial games and wifi unlike GP2X, AND they will now cost roughly the same price (the absense of a shipping fee and batteries makes up for the memory stick's higher price). Something must be done.

 

[sehs33]

I agree with darkman on this, GP2X audience is way different then PSP and DS's one.

 

[Yono]

I don't think that GPH sees Sony or Nintendo as competition. The GP2X is in a class of its own. You really can't even begin to compare the GP2X to either of those systems. The Sony system is a Multimedia system. Nintendo's systems are game systems. The GP2X is like a portable computer.

Oh the other hand, GamePark's XGP could be in trouble, as forcing them to sell it at a loss would be a pretty big hit.

 

[craigix]

Riiiight. Something must be done then based on this PSP price drop rumour... Any suggestions then?

 

[JaqMs]

Craigix, don't be a prick. I didn't mean it literally.

 

[Winterkid]

JaqAss, don't be a jerk. Well, it's too late for that, I guess.

PSP's price isn't going to affect the GP2X all that much, honestly. It's a different beast altogether, meant for slightly different end consumers.

 

[DaveC]

This also means thay Sony will be even more dependant on game sales to make up the cost. This probably also means they will be extra rabid in crushing homebrew. In that case it is a different market then the GP2X.

 

[telegramguy]

Oh the other hand, GamePark's XGP could be in trouble, as forcing them to sell it at a loss would be a pretty big hit.

Not to get too far off topic but ...

I'm not sure I'd like that. I want to see the XGP hit the market hard and get up to speed like the GP2X emulator scene. With 3D acceleration, you might get to see some speedy N64 and PSX emulators coming online.