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"PSPgo will fail miserably" - UK retailer News
PSP News by Games Industry.biz
The managing director of the UK's largest independent games chain, Chips, expects the PSPgo to "fail miserably".
Revealing his views to GamesIndustry.biz, Don McCabe said: "My own personal opinion is that it's a no-go. I've been to a number of presentations to see if there's anything there and I don't feel it'll go anywhere to be honest.
"I'm 99.9 per cent sure it's going to fail miserably, in which case it's going to put back other potential people coming into that digital space."
This failure could be a positive for retailers of course, who stand to lose out on sales of software and trade-ins if digital sales completely take over from boxed ones. "From a retailers point of view the PSPgo is a good idea," he said.
"I heard from someone at Sony saying 'this steps our authority on the digital space and signals our intent,' and actually what I think is that they'll scare the crap out of anyone else who tries to follow."
McCabe's comments follow those of ShopTo CEO Igor Cipolletta, who told GamesIndustry.biz that sales of the PSPgo for the e-tailer have got off to a slow start. Part of the problem, said Cipolletta, is that retailers are unable to discount the console's relatively high price in the form of bundles, due to the absence of physical software.
But a secondary issue, said McCabe, is that while publishers see tremendous growth possibility in digital downloads, they are currently struggling to make profit from them.
"Everybody looks at Apple and says two billion downloads - well, yeah but out of two billion downloads I'd say maybe 70 per cent of those have been free. And of the ones that they've paid for they'll have paid pennies for.
"Apple's a tremendous success story for Apple, it's not a tremendous success story for anybody else."
As such, digital is a pipe dream at the moment, added McCabe, who compares its current state as "like the dotcom boom".
"It's going to come, no matter what, but a very small amount of people are actually going to go on to make any money out of it. One or two will make serious money and they'll be held up as 'you too can do this'. Whenever you see anyone producing fantastic figures, just ask them how much they actually made from it."
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Poster
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+4
I think Sony know it will fail, I think for them, it's more about testing the infrastructure and getting consumer feedback before they make their decisions on PSP2.
If they only sell 100k I don't think they'll be too fussed, they certainly haven't pushed it into people's faces like they have with the slim PS3 anyways, which suggests they have reasons other than profits to get this pushed into the market.
Edited 1 times,
most recently on 07/10/09 @ 10:50
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spookyzombie
07/10/09 @ 09:54
0
@ DFawkes - They had them on in display in the Gamestation I was in yesterday. Have you tried there?
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jonthepymm
07/10/09 @ 10:04
+17
Well I've read enough to know I'm in the minority but I'm loving mine! UMDs were fiddly to carry, noisy, slow to load and drained the battery life so I'm glad they're gone. The PSP-go is small (so pocket-portable), silent, and weighs as much as a console controller so not uncomfortable for long play sessions.
I agree pricing is slightly more expensive through PSN than through shops but there are still some bargains: Final Fantasy VII at £7.99 is hours worth of gameplay. Personally, I think PS-one games look better on the PSP-go than they've ever looked before. Maybe the PSP-go will fail - but I'm impressed with it so far. |
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+10
Me thinks Lambtron is bang on the money, Don McCabe is cr@pping himself.....
And heres why I think this, currently, games retailers take around 60% profit share of a game, publishers get around 30%, the Developers see approximately 10%!!!!! You see what is wrong with this picture I hope.... His argument as regards the iPhone is totally unfounded also. True, people are more likely to buy free 'Apps' on the iPhone, and the uptake of people paying £3 + for software is probably slow. But he is forgetting one thing, the iPhone has only ever been digital, people, you and me, are already used to buying games at retail for £30+ so when a new game arrives digitally at a £35-40 price point, who is going to question it? no one because as long as you do your research about the game, you know you are getting quality. iPhone games are still finding their feet, but the quality will come I have no doubt. Personally, I think retailers have had far too big a slice of the pie for far to long! You only have to open a copy of MCV to see the amount of bullsh!t award shows, days out, etc they all get free!! For doing what exactly, selling games that sell themselves anyway*!!! (*If they are good) Example, I'm going to buy COD MW2, lets face it, I'm one of many.... (As long as the reviews are horrible, which I doubt.) Now, do I really need some 'know it all smuck' in one of these games stores to pass me the box and comment "Thats good that is mate" and take my money off me??? NO I don't, and neither does anyway else..... Cut out the middle man I say!!! Viva la revolution!!! ;) Ik
Edited 1 times,
most recently on 07/10/09 @ 11:05
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-7
I really dont care if you havent heaqrd of Chips, like neither have I actually, but most of his points are more than logical and I agree with them. As in PSPGo failing and scarin others of the market doing the same step any time soon, while at the same time giving room to other's entering similar, handheld market and as well as other points he made.
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0
Picked up a pspgo the other week from the States for $250 (£160). It's a fantatsic and sexy piece of kit, but would not have bought one at UK price levels, way too expensive for what it is.
Still. the digital distrubition platform from a pricing point of view is way off from the retail chains. In order for it to suceed Sony must drop the price of the hardware significantly (sell at just below cost even) and make money through software sales. |
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Mentalist(air)
07/10/09 @ 10:17
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At the Braehead shopping centre near Glasgow, there's currently a big Sony promotional booth in the atrium. They've got this open-topped shack thing with different rooms, and TVs on the outside promoting PS3 stuff like Singstar, Eyepet, Uncharted 2 and such.
Then they've got this ring of seats with PSPs chained to them. But the PSPs are all 3000s, not PSP Gos. |
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donnie080208
07/10/09 @ 10:23
-2
Lets hope it does fail, as i for one do not want download only consoles either handheld or home. I also think sony have been forced into this position by the dismal psp software sales/ library and pressure of publishers who dont make any money of the platform. The DS has a big piracy problem yet its games still sell millions, sony need to learn a lesson from nintendo on how to make handheld games.(ie not ps2 games)
Edited 1 times,
most recently on 07/10/09 @ 11:42
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+5
I think Sony know it will fail, I think for them, it's more about testing the infrastructure and getting consumer feedback before they make their decisions on PSP2.
This. The dev costs on it can't have been that high, and at that price they're probably making getting on for £100 a unit even after retailer/distributer markups. Sell 50k and each one buys a few pieces of software and they probably break even, and they have some invaluable market research. Either they're not as stupid as they make out, or they should come and read our comments :) |
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Sunyavadin
07/10/09 @ 10:27
+2
Seriously, who the hell are these "Chips" people? Can't even find mention of them on google under games retailer searches... I'm guessing they're based somewhere in the southeast? Or are they the company who own a few of the smaller national chains, like Entertainment Exchange?
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+1
"That must be the most expensive and monopolistic "revolution" ever, as if you ever "cut the midle man" you'll destroy competition; price cuts; freebies... et cet era. I'll pass this one."
As in the 'Digital Revolution' not the 'Sony Digital Revolution' So long as different Publishers, hardware manufacturers exist there will always be competition, price cuts and freebies.... just because this will happen digitally doesn't mean it won't be there! It won't destroy anything!! it will make it everything better, quicker, and more stream lined.... Just need to be open minded thats all. ;) Ik |
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Sunyavadin
07/10/09 @ 10:30
+5
What a bunch of crap. Why don't you go tell Valve what a pipedream digital games distribution is
Yes, but the stuff available over Steam is usually available elsewhere, meaning competition exists, meaning they offer pricing incentives to buy via Steam, often fairly good ones as Valve can afford to lose a bit more profit margin per unit for increased overall profit. That's how competition drives down prices. No such competition exists in sony's model for the PSP |
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youhavenomail
07/10/09 @ 10:33
+1
Rentals will be the Go's saviour. It's a nice looking piece of kit and being able to rent movies as well as games to play all over the place for a couple of days on it is appealing. What they're trying to do at the moment, i.e. to convince consumers that there are any advantages to paying a little extra for the privilege of not having anything physical to show for it is not going to work while UMDs are an alternative.
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+1
@Sunyvadin
http://corporate.chipsworld.co.uk/about-... http://www.chipsworld.co.uk/ Although I must admit I had never heard of them either. Just shows how few indie games stores are left in the UK. |
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Anthony_Daniels
07/10/09 @ 10:36
-1
lol @ scared retailers, they mean they hope it fails miserably.
and what the frak is chips |
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JohnnyWashnGo
07/10/09 @ 10:37
0
Damn, I was so set against getting one due to cost/reduction in functionality/proprietary connectors and cables/no UMD/no replaceable battery/generally feeling of wallet abuse... but with all this talk of it being a miserable failure and something that nobody wants makes me want to get one for my collection of games machines that didn't make it.
It will sit pretty next to my NeoGeoPocket, Gizmondo, Virtual Boy etc. My only worry is that if other people start to think along the same lines, it may actually become popular and therefore not be the utter failure that it looks like it may be at the moment. |
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svd_grasshopper
07/10/09 @ 10:41
+1
how is this a bad move for sony??
if you use a PSP for its intended purpose i.e. travelling etc... on the GO, then it makes sense. the GO is only a supplement. they stated they were continuing support for UMD. it cant really fail. whether you download games to a GO, a 2000 or a 3000. or buy the UMD's. the PSP platform is still healthy. |
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+3
Don's argument is that the 'Go' will fail because its digital....
I think he is forgetting a few things. 1: Developers make the games, 2: Publishers pay to have them made, 3: This is business, if their is any way on earth that the publisher can make more profit, they will. The digital age is coming whether we like it or not! I'd be very surprised if the 'Next generation' of consoles have a DVD/Blue Ray drive, in fact I'd be surprised if they have Hard drives. Digital download, Multiple USB ports, and alot of 'Solid state' memory.... its the way forward... Think about it, no more moving parts in consoles, less noise, less heat, less chance of 'Red Rings/Blue light' hard ware fails..... Everyone is a winner, apart from retail, so instead of bleeting on about how rubbish digital is, they need to embrace it, and find ways of making it work for them. If not, they will be out of business, and I for one won't shed a tear over that. Okay, I've finished on this... ("Thank the lord" ;) I hear you say :) Ikari
Edited 2 times,
most recently on 07/10/09 @ 12:06
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svd_grasshopper
07/10/09 @ 10:48
+2
the next gen systems will defitinately have optical drives.
they willjust become increasingly less significant. |
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+2
Chips in "We dont want your £225" scandal.
Cannot help but feel that any retailer which seeks to deny a product to customers by boycotting it is making a mistake. I may not want something now, but I want the choice, and should I suddenly look to impulse buy one.... well they lose. Not that there is a Chips anywhere remotely near me. Plus I already gave Gamestation £225 for one so....... |
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Markusdragon
07/10/09 @ 11:07
+5
A download-only future, if modelled similarly to the PSPGo's system, is very bad news for both retailers and consumers.
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+1
Anyone know the % of psp/ps3 owners that actually use PSN or go online. My guess is that the average /casual owner,
a) doesn't have an available wireless network or b) doesnt know how to connect to psn or go 'online' using their console/handheld. If this is the case, then the psp-go is definately going to struggle. |
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