"PSPgo will fail miserably" - UK retailer
And put others off, says Chips MD.
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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Comments (101) Latest comment 2 years ago
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Bad move by Sony, people(including myself) only see digital downloads as supplementing their games collection that is sitting on their shelf. I'm sure at some point in the future digital downloads will be the only method of purchasing games but not now.
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Actually being able to touch one makes a few of the negatives go away. This still leaves an abundance of them remaining, but it's worth getting a feel for one if you get the chance.
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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.
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Tomorrow I'd like to read what Mick the Sandwich Man has to say about how piracy and second-hand sales are affecting the industry in this current economic climate please.
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pretty much yep
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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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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
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Em yes it is, there are loads of success storys of developers making bucketloads from the apps
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Still think it won't do well. Too confusing for the masses, to loose for the hardcore (I'd like to own my games without losing them when PSP2 hits)
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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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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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Viva la revolution!!!
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.
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I'm getting told how great it is between every 3 songs on Spotify.
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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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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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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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They are right though PSPGo is going to fail horribly.
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[link url=http:/ /corporate.chipsworld.co.uk/about-chips/
]http://co rporate.chipsworld.co.uk/about-...[/link]
[link url=http://www.chipsworld.co .uk/
]http://www.chipsworld.co .uk/
[/link]
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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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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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"
Ikari
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Exactly, times change and businesses have to move with/embrace advances, or risk going under. What does this dick expect Sony to do, bend over backwards to help him make more money with as little effort as possible on his part?
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At least a digital download will not stink of fags like most of the stuff from their shops.
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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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Unless Sony are idiots they'll be back next year with a REAL PSP2 - with the same form factor - but with the missing features included:
- touchscreen
- tilt sensor
- right-analogue
- better analogues
- PSN messaging and friends lists
- GPS
- improved resolution and graphics h/w
- 32GB option
etc...
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You only have to go in to any Game, Gamestation, HMV etc and the lack of available PC games is horrendous if they have any at all. Stream has to be the way forward for the PC.
Whilst 70% of apps "purchased" on the Apple store might have been free I bet Apple are over the moon about transacting 30% of 2 billion apps as paid for transactions. Nobody complains about the price of iPod Touch
Nintendo, Sony and Microsoft are all selling games directly to their current generation consoles and whilst it might be the thin end of the wedge currently as far as retail sales are concerned you can almost be sure that the next generation of consoles will be lacking any kind of optical drive at all
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It is an expirement to test the waters and see how many people are interested in a download only service.
They will scrap it once they have the data they require. Exactly as they did with the PSX (No not the PS1 the PSX look it up if you've never heard of it)
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It's worth remembering that McCabe has just made these 70% stats up off of the top of his head with no facts to back it up, for all we know the figures for the app store might be a lot more appealing than he suggests.
The guy's clearly a hack, and if he's any sense he'll sell up now while he still can, retail is dying and no amount of stamping your feet and denying the inevitable is going to change that. The fact of the matter is the content makers are getting a raw deal, why the hell wouldn't they look for a way to cut out retail as soon as possible, Sony (et al) have no reason at all to drag their heels on digital distribution.
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I and it seems quite a few others have never heard of `chips` nor seen any shops, so why should I care?
And when it comes to independent game stores, I have not used one since 1986, the places I have lived since have never had one and I have not missed what I have never had for 90% of my gaming life and I honestly do not see what all the fuss is about.
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I see the joke is lost on two people.
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I dont think it will fail miserably, yes its over priced, but isnt most new tech, give it 12 months, the price will drop (it already has)
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Until there's competition for delivery of content I'm not interested in digitally downloading games.
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Digital distribution on the other hand is good for developers who can by pass large behemoth corporations(publishers) who take the lions share of the profits and stifle innovation.
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Digital Distribution is coming, and it is a worry for all B&M retailers even online retailers will need to change. Amazon and play are already dabbling in DD.
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Digital distribution FTW!
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* Interested in a retail business?
* Looking for a business that’s fun and profitable?
* Prepared to work hard?
* Able to invest around £30,000?
THEN you could soon join the exciting world of video games and run your own CHIPS store.
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lol?
And Chips? Who? Never heard of them...
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too true. Its a shame, but the publishing houses have been looking for a way to cut out the second-hand market - they've been pretty quiet as of late on this front (I guess, to avoid shitstorms with the buying audience) - my guess is digital disitrib will be emabraced by them all sooner rather than later, as it puts the publisher back in command...
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The reason I like it is:
* I like digital distribution. I love being able to just download to my Xbox,PS3, PC (Steam/Inferno), iPhone, Android Phone, NDSi (although Nintendo really suck at providing good stuff) and now the PSP.
* The formfactor. I used to have a PSP1000 and later a PSP Slim before I sold it. The PSPGo formfactor is so much better (IMHO). It fits very neatly in my pocket and it is basically the size of my iPhone although thicker.
* Good quality. I wasn't that impressed with the build-quality of my PSP Slim as it felt plastic. The Go in my opinion has better build-quality and feel to it.
* Surprisingly I like the Go Media program. It is like iTunes but much faster (iTunes is a resource hog). It even picked up all my music on my iPhone so I could transfer it to the PSP.
I do not miss the UMD at all but that is mainly because I never had a big back catalogue of UMD-discs. So to me it is a fresh start. I do not think the prices are that bad. I'm usually not going around trying to find the absolutely lowest price anyway so the conveniance of being able to just get it when I want even if it is late a night and I realise I want to play game x is a big bonus for me.
There are things I do not like though. It has slow WIFI (what the heck is that ...? Lucky I can just download via Go Media on any computer), no GPS and cost a bit too much.
When I first started using it my first though was actually: Sony Ericsson PSP Phone. To me this is the first step towards making a phone with the PSP brand. They could use the formfactor, add touchscreen and tweak the GUI a bit and have a very interesting phone. They already have an "appstore" which they could open up and the hook to the PS3 would give it an edge.
Yes, I could have gotten a PSP 3000 and downloaded to it but in the end the formfactor of the Go won me over. In the end I wonder if they should have released a PSP-4000 at the same time as the PSPGo so that it was obvious that they now plan to split up the PSP Line into the regular PSP and the PSPGo.
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And really wtf is Chips anyway?
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[link url=http://co rporate.chipsworld.co.uk/about-...
]http://co rporate.chipsworld.co.uk/about-...[/link]
<a href="http://www.chipsworld.co .uk/
">http://www.chipsworld.co .uk/
</a>
Although I must admit I had never heard of them either. Just shows how few indie games stores are left in the UK.
Good find there! Up here in the northeast we have a fairly large chain in Grainger Games, a chain that started with one store in Newcastle a few years back and now have stores in more towns across Northumberland, Tyne and Wear, and County Durham than Game/Gamestation do.
I think it's inevitable that the way it will go is digital downloads. But don't fear, pirates will still find ways to circumnavigate any security.
Damn right. If they think piracy's a problem now - they've seen NOTHING. Once all consoles are designed to use only downloaded software - it'll be even EASIER to mod them to access torrent networks and warez sites INSTEAD of the official service.
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It's a well-written, thoughtful post with a useful list of likes and dislikes.
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because he cant make any money from it after throwing his toys out of the pram...
- on a separate note he is right, but only because its stupidly priced - about the same a ps3, even though its just a standard psp with no umd drive.
if sony want to sell direct via digital download thats their right - though ripping people off from the get go isn't a great way to start.
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"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%!!!!! "
Even if your figures accurate, this completely fails to take into account the actual true distribution of revenue for games sales.
For example a very good game might sell 5,000,000 copies.
A individual shop might sell 100 copies and earns 60% share of those 100 sales. Chains like GAME will get more obviously, but that 60% is split amongst all retailers
A publisher might only get 30% share of all sales, but they get 30% of 5,000,000 sales.
A devco will get 10% of 5,000,000 sales.
It's pretty easy to see who actually really gets the lion's share of the profit - and DD will only increase that.
And ultimately, I believe that a DD only model will end costing the consumer (i.e. us) more.
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I like the fact that I can buy a game and have it there and then rather than ordering in advance or having to go to the shops (20 mins walk)
The prices don't seem to bad for some of the older games (GOW is £14.99). Sure I could get it cheaper online but again it's about having it when I want it.
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The North-East used to have a few more Chips' I think, Sunderland used to have one but I think it closed, South Shields might still have one, and there might be one in Darlington tucked away in a back alley somewhere.
I'm pretty sure Grainger's expansion (and cheaper prices) has killed off a lot of smaller 'indie' chains and Chips were no exception, which might be why so many people are saying "Huh? Chips? Who are they?".
As for the PSPGo...... Hmmmm, I do have to wonder, could Sony not have implemented all this new PSP PSN content and functionality without touching the hardware? I hear so much negativity about the machine that it feels like its permiating into the PSP brand as a whole, when really its the same decent, powerful, flexible handheald as ever.
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Grainger Games in the North East, as a few others have posted, are also a fairly new independent game shop that has doubled in growth over the past few years, with a new branch springing up rather often. There are practically no other independent game retailers (With more than one branch) spread across the UK now that GameStation are owned by GAME, so is it not worth actually listening to what they say, no matter what sort of agenda they may have, rather than assuming their expertise are pointless because they aren't as mainstream?
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Surely they must realise that if the price is right then customers will gladly download leading to less piracy and trade-ins.
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The guy probably does have his motivations for saying these things, but in all seriousness - what is the appeal of the PSPGo? It's expensive, and offers current PSP owners almost no reason to upgrade. New potential buyers will probably look at the price of it and the DSi and laugh.
And then they'll buy a DSi...
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I still remember the first(?) Chips on Linthorpe Road in Middlesbrough, run by Don... I much preferred the Games Store...
edit: and my games were covered in stickers as well (or pen) so they knew when you brought one of their games back. Don's rip off franchises survive like leeches in today's games industry. TBH I would not call them an indie as the franchises are run as a unit. Bottom line Don my old mucka, you can't expect to get away with ripping people off forever.
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Sony has tried to combine a brick & mortar business model with a pure download model and that simply doesn't work. Combine that with a poorly thought out hardware update and the result is inescapable failure.
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I was having this debate with my friend at work the other day - are we (the people) ready for a purely Digital distribution infrastructure? I am inclined to say a big FAT no.
Firstly, the physicality of owning a new game, the case, cover art etc. - people like that and I think it acts as a form of security as opposed to buy something then have only 5 downloads or something.
Secondly, we are extremely price sensitive, and when only online/digital services are available, we are screwed. We will all have to boycott the console/medium that this exists on because we want cheaper games, not more expensive ones, and since there will be no incentive to make games cheaper or offer them at bargain prices we will be FORCED to pay full price all the time.
I know this doesn't necessarily include everyone, but I mean, imagine MW3 on the next PS/Xbox consoles, DD only, then Bobby Kotick and the corporate tossers all win becase 54.99 SRP becomes the actual price.
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In music is already has had its breakthorugh through iTunes and Amazon. In Europe video download is still rare but in the US iTunes, Netflix, Hulu etc. all are sucessfull examples where accessing video digitally is working fine.
Books: The Amazon Kindle is finally coming to Europe and already have done a lot of e-books in the US. Audio books are very popular on iTunes.
Games: Steam, Inferno (Stardock), Xbox Live, PSN, WiiWare, AppStore etc. all are sucessfull and show that DD is actually working fine already.
Yes, it will be along time until it is the only way we consume media or buy games but I think the age of DD is already here. I agree there is an issue right now with to little competition between services but all we need is to get a few more services to pop up to start getting some compeititon between them. There is no reason except for maybe greediness from publishers why a game could not be availalbe from Steam, Inferno, "Amazon Game Store" (when they get into the game), Direct2Drive etc. and thus we see different pricing between these services.
The way retailers can still get some money would be to sell Vouchers for games that can be used in the different stores ...
I guess there still is differnece though between us users. I've gone mainly digital download now with my PC, iPhone and now the PSP and if Xbox Live and PSN started to sell all their games online I probably would start getting most that way. I very rearely sell my old games anyway so the loss of second hand market isn't really a big deal for me. I do see why it is for others though. What's interesting is that there shouldn't really be a reason why digital downloads couldn't be sold second hand either. In fact, you could even make the argument that by providing people a way to resell their DD on a service like Steam it would be possible for the publishers and Steam to get take a small commision fee. True, a second hand sell could mean a loss of a "real" sale but it could also mean a new user that wouldn't have bought it anyway and a way for the publishers to get a small cut of that sale ...
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But we'll see.
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Sony would do better off cutting costs and selling the PSPgo online, and giving away say 10 free downloads to get you going.
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Maybe Sony should consider the retailer's pov and think of a way to make things more attractive to them. Like giving retailers profit shares of the PlayStation Store per sold PSP.
Just thinking out loud.
FWIW, I think the PSP Go is a good product for PSP newcomers. If you consider that a PSP Go is actually a bit cheaper than a PSP 3000 with 16GB card (and also cheaper than an IPhone), then it suddenly looks a lot more attractive, especially if you prefer digital distribution over old school noisy UMDs.
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a bit like "Grainger Games" are all over the place up here (in the North-East)
but there are a lot of valid points...
i just cant see it succeeding int he short term at least. anyone who has a PSP wont be buying one and the price point will put the majority of buyers off. why buy a PSPgo when the 2000/3000 is so much cheaper! and also plays the UMD's that can be picked up relatively cheap.
the PSPgo is the equivilent of an ipod that only lets u play tunes you've downlaoded from iTunes, but wont let you put the CDs on you've already bought!
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Come to Chips....For peripherals with a hint of yellow and the unmistakeable smell of fags.....
Chips...adding the sense of smell to the gaming experience....
But seriously....all their stuff smells of fags...and the franchise business is a total con.....