ShopTo: PSPgo "almost dead" on arrival
Retailer boycotts "foolish", says Pachter.
ShopTo has empathised with European retailers boycotting PSPgo, and reckons the format "is almost dead before it has arrived".
Analyst Michael Pachter, on the other hand, thinks they're all being "foolish", and calls the entire situation "ridiculous".
"It's just silly for a retailer to say that they won't sell a big ticket gaming device because they can't sell the games. Consumer electronics stores sell refrigerators and not food, everyone sells iPods and not the music for them; this position is just ridiculous," Michael Pachter, analyst for investor Wedbush Morgan Securities, told Eurogamer.
"I think that it's foolish for a retailer to be selective about what they carry, unless they truly don't believe it will sell well."
A much better course of action, he argued, would be to buy limited stock and then re-order if appropriate. "Refusing to carry them subjects them to the risk that Sony will bypass them for Gran Turismo or Uncharted, in which case they lose," he said.
The ball began rolling when Dutch outlet Nedgame publicly opposed the PSPgo for being too expensive and for not featuring a UMD drive, thus providing no opportunity to sell games. And controlling all sales via PSN gives Sony a "monopoly" on software sales, argued the shop.
Media Markt, a German retail chain that spans Europe, took up a similar position, with Spanish and Italian (and no doubt other regions) outlets prohibited from selling the device.
ShopTo will not follow suit, but agrees with the sentiment. "We do have it listed on the site, but we are not concentrating any big marketing behind it," boss Igor Cipolletta told Eurogamer.
"Sony has decided to cut publishers and retailers for the software of the PSPgo and deal direct with developers, giving them a 70 per cent margin for any items sold on Sony PSN. I believe if they had lowered that to 50 or 60 per cent, and given the opportunity to online retailers, it would have enjoyed greater success and retailers would attempt to promote the console to the market."
Cipolletta, however, feels the damage may have already been done, and the format - which launches here on 1st October for £224.99 (€249.99) - will be a flop.
"I have the feeling that as a format it is almost dead before it has arrived, and it relies far too heavily on a customer base that is prepared to pay more for download content than the equivalent disc based product, and I suspect this market will soon dry up based on the technical limitations of the hardware," Cipolletta shared.
But, Pachter added, while retailers wield "some power" now, their foot-stamping won't be entertained for long.
"As far as the argument that 'it's about time' retailers received their comeuppance: I think that will occur soon enough anyway, as the large hard drives in the PS3 and 360 (and the larger ones coming) will encourage a greater number of downloads in the future," he offered.
"Retailers have to face the fact that games will be increasingly offered over Xbox Live and PlayStation Network, and cope with the outcome.
"To draw a line in the sand," Pachter said, "is wrong."
Sony, incidentally, has not responded comment on the matter.
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Comments (118) 2 years ago
Comments threads automatically close after 30 days, but please feel free to continue chatting on the forum!
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A flop?? good call!!!!
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... wishes there was a bath-proof PSP cover.
Analysts understand a lot of things, and are complete arses about some subjects but he's right in that the retailers are being irrational. There is a buying market for PSPGo and people will spend their €s with someone else. If they're worried about sales, they could always bundle extra gear/vouchers/ even PSP UMDs for those who are keeping their old one. Not much different to what they have done with most other consoles.
Also, with no imminent console releases for the next couple of years, why turn down the one that does come around?
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Nice try though.
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Not toilet proof either, believe me I know.
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Patapon 2 did already in the states right?
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@Vanmunt - Is that a deliberate attempt to start the PSPee subthread (again)
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I have a feeling if Sony prevents these major stores (Media Markt is extremely major) from carrying certain games they'll suffer more than the stores do (remember, game margins aren't terribly good either unless you're looking at used games which Sony can't do anything about) and might even end up slapped by a court for establishing barriers to trade.
Retailers already mark those download value cards for WiiWare and XBLA up because the margins on the things are too low. Maybe the industry should stop ignoring the retailers because they wield a lot of power by being able to directly talk to their customers.
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They could do that yeah, but I think it would be the first nail in the coffin.
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Come some bigger names releases seeing if these stores get them will be interesting.
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I shit you not.
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I hope this conflict helps sorts the matter out one way or another, because at some point the retailers are going to have to admit that for some people, DD is a far more efficient, convenient and environmentally friendly way to distribute software than the old way of doing things.
This King Canute method of trying to halt progress with boycotts is hardly a long-term solution.
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The PSP has started getting some really great games recently, but there's no reason to buy a Go over a 3000, especially when Sony are doing some amazing bundles with games like Dissidia.
I'm sure games consoles will eventually become digital only, but the Go isn't the system that's going to start the trend. We need to see something like Steam for consoles, cheap games, good deals, etc..
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@MiniAmin
Patcher your logic is flawed. Yes Electronic stores sell refrigerators but they don't sell food at all. Yes shops sell iPods but they don't sell the music as well. The difference is that games retailers sell games primarily: with PSPgo Sony aim to bypass that very process.
Nice try though.
Yeah, was amazed at his examples too. It's like if Sony asked Tesco to sell their new magic food replicator, yep from now on you download food direct from Sony so no need to go to Tesco.
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In the case of PSPgo, it didn't need boycott anyway since at this price I can't see it selling much.
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Why bother marketing at all when Eurogamer will just publish anything you say as news?
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This will be the future for any download-only plattform .....it simply not having support from retail and thus becoming a flop.
Or - more likely IMO - they'll simply switch more and more to Currys, PC World, Tesco, Toymaster and other non-specialist retailers. The push to pure digital means there'll be no room for specialist retailers.
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What there needs to be is a way for GAME, ShopTo, Amazon etc. to sell downloadable console games as well as boxed games on their websites. As long as there is competition there will be retailers competing for trade by cutting prices.
Retailers should be trying to convince MS and Sony to let them sell downloadable games instead of trying to stop the trend in the first place.
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This story is getting out of hand with rampant exadurations.
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But - Video game stores sell consoles AND games - & have done for 30-odd years now.
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It's comments like this that I don't get. It has to start somewhere. It doesn't just start off with one massive release that's successful instantly. It's either an insta-fail or lots of previous small successes. Apple have laid the foundations for DD and others are following the trend. Yes, it will happen eventually and games retailers won't be able to do a thing about it. They'll just have to continue making a massive profit on pre-owned games.
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I think he understands it perfectly. He also understand it's future is finite.
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You're right. What I meant was, Apple were very successful with it in a way that they brought it to your average Joe's attention more so than anyone else.
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well said that man.
but the price of the PSPGO is stupid too.
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foolish and greedy... ironically it will probably see them make less profit overall than if they had've stocked it.
that's because ipods are reasonably priced and sell well (retailer makes money on ipod sales). the pspgo is ridiculously overpriced, and its sales expectations can't be more than a few thousand.
you won't find many people dumb enough to spend 250 euros on totally outdated technology, especially if the exact same tech is available 30% cheaper.
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All three consoles have also begun to move towards digital releases with XBLA, PSN, the virtual console, Games on Demand, etc.
Perhaps I worded it badly, but my point was, the PSP Go isn't going to take off because of their pricing and it's not going to be the first game system to successfully pull of being digital only.
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That's true, Apple was the big turning point that showed it could be successfully monetised, but I'd argue that it was mass piracy (Napster, Kazaa, BitTorrent) that made the entertainment industry wake up and realise that downloadable media was going to rule the future.
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Shops still sell sony TV etc... why is a PSP different from any other piece of consumer electronics?
are we refering to all retailers or is it just games retailers throwing hissy fits?
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More money or chances to make more money for the developers is always good news.
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Yes, retailers are large companies designed to make profit. More sales, more profit. Same as every other commercial outlet.
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I can't believe you used the iPod for your example that people won't pay extra for something when there are other devices with the same or better tech for a 30% cheaper price :/
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I think Pachter makes a mistake trying to compare different products. TV's for example don't have further software products directly used by them that shops can also sell on after people have bought a TV from them. Remember like the manufacturers, retailers make more money from software sales.
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Of course retailers are going to be reluctant to sell something which they can't sell games for - that's how they make most of their money. I mean seriously you can't see where they are coming from? Doesn't help that it's a handeld that costs more than some next-gen consoles.
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Not strictly true. Some iPod sellers also sell CDs, which can be converted for use on an iPod.
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You'll notice it's specialist games retailers complaining. Not chains like HMV or supermarkets. The only reason selling games is so profitable for them is the fact they sell second-hand over brand new, stick a whopping great margin on new games (40%) and force publishers to buy back unsold stock at exhorbitant prices.
But you're right - they should be allowed to continue doing this.
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Yes, I know. My question here has always been why does a retailer get a bigger slice of the pie compared to the developer´s within a game´s price? I mean, we see game studios closing and going bankrupt pretty much every week, but I don´t see Game or Gamestop going the way of the Dodo anytime soon...
I know retailers have to make profit selling games, but what about developers? They do those games, right? Then why are they the last on the food chain?
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Erm shops that sell iPods don't sell music as well? What kind of statement is that? Music stores don't sell iPods? Since when was that the case? I saw the whole new line advertised in my local HMV just the other day.
I sort of agree with Pachter's point tbh. While the food and refrigerator was a stupid example, I don;t think that the iPod example was wrong at all as it is precisely the same situation.
Apple got round this by allowing retailers to sell credit for the iTunes store in prepaid card form. Sony has just released these prepaid cards for PSN as well incase people missed it.
I just bought £40 of PS store credit myself from a retailer, so some retailers are just being ignorant by stopping the sale of this system. It probably won't sell too well thanks to it being too expensive, but retailers would certainly have sold some. Better to make some money on it while it lasts than none at all right? It's better to embrace new trends and work them into your business model than to reject them. Look at HMV and Amazon offering mp3s now online for an example of how they have moved on with the digital age.
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No single person has decided how much money each step in the chain receives. The market sets it.
Publishers are free to try and charge retailers more for their games if they want to, but would the retailers then buy them? Likewise, retailers could double the price of games if they wished but it doesn't make financial sense.
If there are lots of developers out there all trying to sell their games (there are), it stands to reason that their piece of the pie is going to get smaller. I think we'd all like to see developers get a fairer slice of their profits, but until the market has to change to allow that to happen. And judging by this article, retailers are not gonna let change happen easily if they can help it.
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i mean, at first i was surprised to sees waterstones selling those kindle devices (horrible little things that they are) but they probably realised that the world is changing and you have to adapt to stay in business.
long story short: as if game shops sell any psp games anyway lol
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PSP go = £224
Someone PLEASE explain Sony's pricing strategy ?
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Not a single bit of evidence this thing's coming very soon on the UK high street. Game, HMV, Currys.
Nothing.
If they are stocking them they don't want anyone to know about it. Online seems to say a different story, multipurpose stores like Amazon and Play.com are stocking it, ie the ones that don't rely on games for the bulk of their sales.
I'll keep following this as I'm interested to see how it all pans out. Must say I'm thinking of getting a new PSP and while the go is VERY tempting I am siding with the 3000 at the moment. Cheaper with UMD AND Digital Download options, larger screen. I already have a decent memory stick from my old one. The few compromises I'd have to make by not purchasing the go just aren't intrusive enough for me to spend an extra £90 to avoid.
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The difference is that devices such as the ipods and refrigerators A) make a healthy profit - and some margin for retailers - and B) Sell fuckloads more than consoles. Gamedevices on the other hand have next to no margin on the hardware and get a lot from the software. Take that away and one could wonder why you would bother.
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How many people bought DS Lites with rubbish cameras for £50 more.
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Consumers would still benefit, as with Amazon there are sales & reductions on XBLA titles - competition would drive prices down
However this would be dependent on Sony & Microsoft agreeing to such a policy......
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I don't know whether you missed the point or whether you intentionally quoted me out of context: of course shops sell iPods and music alongside each other. The point I was trying to make was perfectly clear in sentence after the one you posted.
Games retailers sell games primarily. It's like if HMV started selling a music device which prevented them from selling more music. I agree with what you say about vouchers but I think it's a bit different: You can buy the music in HMV or you can buy Apple vouchers and then buy the same music online. There's an option for both the store and the consumer. With the PSPgo there isn't that option, and this is precisely what scares retailers.
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If I want to buy a digital version of an xbox 360 game how many places can I get that from? one
likewise with digital versions of ps3 games
sounds like a monopoly to me and as the market grows I'd imagine both sony and ms will have to open up their consoles to allow other stores to compete
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Music stores (e.g. HMV) sell iPods and CDs which can be converted for use with iPod by software freely available for specifically, and legitimately, that use. All the music on my iPod is straight from CDs and it wouldn't surprise me if this is true for a lot of iPod users.
Can anyone point me to any software (and hardware in this case) that allows users to legitimately convert UMDs for use with the PSPGo? No? See the difference? There is no revenue stream for the PSPGo software for retailers, they only benefit from the hardware sale and will get no repeat sales unlike with the current PSPs and other consoles.
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What nonsense. Like Sony, Microsoft or even Nintendo could afford not to have retailers stock their games. In such a situation only the competition benefits because that retailer will simply end up selling more of the competitors products and therefore give more shelf space over to that competitor. In the end people will buy what they can get so removing your products from the stores only hurts you.
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sony should have had PSP download codes in stores in the same style as mobile prepay top-up cards, except for specific individual titles - with artwork and screenshots on the basic packaging.
Should have been in place for the launch - but Sony are a hardware and optical media company, and don't know how to do software and network services.
Too bad, eh?!
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And Sony have yet to talk about anything that's important about the PSPgo, such as:
1. What happens to my downloaded games (stored on the integrated 16GB) if my PSPgo unit dies?
2. How much will the transfer software cost, to port UMD games to the PSPgo?
3. How will the transfer software work - does it have DRM on it?
4. Where on earth does Sony expect me to store downloaded games on my PSP-3000? (If I put them on a Memory Stick, I'd need to buy either a few of small capacity or one of large capacity - either way, I'll have to pay for this cost, as well as the cost of buying a game.)
5. Based on Q4, wouldn't this cost either go over the current UMD cost for a game or at least equal it?
See what I mean...zero answers for all of these important questions...And for that reason, I'M OUT!
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Fixed, baby!
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Almost certainly its going to work the same as with all PSN downloads, you are allowed to have any piece of software active on 5 machines concurrently. Purchases are attached to an account, not a specific piece of hardware.
The trade-in thing was never outlined afaik, but realistically I'd expect them to offer some kind of download opportunity in return for proof of purchase.
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As for Pachter, this is the same man who's initial reaction to the Go was the term "rip off", before Sony bullied him into changing his tune. Seeing him leap to the defence of the model just annhialates what was left of his credibility.
On top of that US retailers have already strong-armed Sony into a price reduction - it'll be no surprise to me if the unit launches at $200 on October 1st.
I had a PSP Go on pre-order with Tesco for £199, and taking VAT into account (which we'd claim back) means we'd have paid £165 for the unit. I still cancelled it, because the UK gets few of the more interesting releases (Yggdra Union, Jeanne D'Arc etc) and we have to pay more than anyone else for the privelege. I'd rather spend $100 on the upcoming Macross Ultimate Frontier LE than an overpriced unit which makes my games collection obsolete and my wallet weep, no matter how nice I think it looks.
Incidentally, SCEE's inability to update the PSN tonight (7:30pm and nothing so far) is another reason I wouldn't want to rely that talentless crew of in-bred mutants for my gaming fix.
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Personally I feel like video games that are sold new are treated no better then used and most game shops are crampt and horrible. Long ques due to people trading games and often smaller released titles or dare I say PC titles are nowhere to be found.
When I buy digital I get the game right away, I pay the developers and console makers.
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Anyone who thinks that the next consoles WONT have an optical drive should be one of these analysts... seriously wake up... broadband in the uk is still patchy for many people and the expected broadband lowest level (but average) will be 2MB... include into the fact many providers cutting back on data transfers at peak time and the fact that many broadband people still have limits on the amount they download (not me, but many people). So please dont tell me that people will be watching TV and downloading 2+GB games over there broadband in large numbers in the next 3-5 years. 10 Years minimum before HD consoles have any chance of having no optical drive, the only except is Apple who might release a console which has smaller games on..which might work with the download model. but im talking proper AAA HD games.
PSPGO is way to expensive when you look at the PS3 price, I expect a price drop within 6-12 months.
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It hurts their arses so much, to see game retailers turning a profit on second hand games, that they want to kill this market at any cost. In their eyes, everything must be sold new, no exceptions. Absolute bullshit, but DD they'll wave as their saviour.
I think its unfortunate, that DD is being used in this way. For all the potential it has, I still think its better for the industry to have physical and DLC co-exist with each other. A total DD future gives far too much control to one side of the industry, next to no control to the consumer and it'll be 1984 all over again. Remember back in the 80's, when suits had such a grip on the music industry? Well, that same history will repeat itself, except with games. A one stop online games shop, where prices are forever high, even years after launch of a title. I don't like or want the window to that future, and I'll fight it every step of the way. If I fail, and it does happen, then I'll just become a retrogamer and stop buying new product.
The PSP Go, is the first system of its type, where DD fills its guts, and I can understand some retailers being scared by this. For one thing, Sony have not thought out the PSP Go price properly, let alone dropped the prices of previous models to reasonble levels. We all know PSP 1000/2000 should be about £50-60 (or less) RRP at least by now. Perhaps PSP would do much better, if this were the case, but Sony are too greedy to make it so, so I can understand some not having much confidence in Sony. And with PS3 selling for just a few pounds/dollars more, we start to believe that someone bat shit insane is running their company.
If Sony were not so greedy, PSP Go would be priced at £120. They should have had a UMD external adapter in development, ready to go and sell next to PSP Go, and this would have eased retailers and gamers fears alike, and who knows, also boost UMD sales. If these conditions were met, PSP Go would sell like hot cakes. But alas no, how its going to play out now, I'm afraid won't be so positive.
I'm sure retailers might also feel the same about On Live, which will/might kill that early too. The best is yet to come, but its got to be physical and DD co-existence or nothing.
Don't listen to Pachter, he's a fool on this one.
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I still find it hard to believe that retailers like GAME have multiple stores in the same city plus Gamestation and are still looking to expand. In a few years they will be cut more and more out of the loop. Consumers want cheaper games and publishers don't want trade ins - the solution is to lock-in and sell direct ala iTunes. There will always be someone else happy just to sell hardware.
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Sony are hoodwinking us all, more than we all think. I'll elaborate.
Remember PS3? When it first came out, it was £350-400. Now its £250.
PSP Go is selling at £224, when hand helds have never cost that much before, and remember PSP Go doesn't not have a hard drive, to justify bumping up the cost, just a memory card.
It looks to me like, though Sony cut the price of PS3 by over £100 or so, this cut amount has been added onto the price of PSP Go price, hence why PSP Go is not £120, like previous versions, but £220 or so instead.
You crafty devils, Sony. Now, I know I won't be buying one.
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The PSP-3000 will continue to be sold alongside, and it isn't like Sony is pointing a gun to your head and forcing you to buy the PSPgo. And when UMD finally dies, your PSP-1000, PSP-2000 and PSP-3000 will still be able to access and download from the PSN Store.
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Sony expect not only for stores to happilly take a hit on the profits, but cut them out of the loop on the main profit - the games - completely. And yes, we have to start somewhere but at the same time we must remember that these stores employ people and provide livlihoods. We are, technically, in a recession and any attempt to undermine the retail chains who need to pay wages is going to end in hostility. Profits are profits but companies and chains do have to respect the little people - their staff.
Yes, I think DD is a great idea and I already do it for the most part. However, as long as there are times when the games are cheaper in a shop I can walk into when out on my weekly shop, I will continue to go into them. And the best example I have of late is Champions Online - £30 for the direct download key. I walked into a store and picked it up for £17. DD can only work if the pricing on all sides is right, and you'd expect the scenario I put there to be reversed - £30 in store, £18 for DD, but it's not. Until that issue is addressed you can hail DD as the next messiah and suck it's big juicy joystick with all your might - DD will not stick until it is competative with the retail sector.
In short, it's a bit of a fuckup. It's not a bad thing Sony are trying to do by a long shot, but it's being done poorly and at the worst possible time in a financial and retail sense. Some retailers, especially the smaller ones, will refuse to stock it because it's just not profitable enough. Where's the faulty logic there? Seems perfectly reasonable. And on DD, as I said, until it competes with the retail you can proclaim it to be the future all you want - it may be the future, but it isn't going to work in the here and now.
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Every tune on my iPod was bought on CD ripped and copied across. Apple don't have a monopoly on music that plays on ipods.
The same can't be said for apps, though.
I am conflicted. On the one hand I'd say 'fuck the shops', but on the other I look at the 360 Games-on-Demand prices and wonder...
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Day after he was,i am sorry,i didn't mean that,please forgive me...
Now he is defending PSP Go...lol...
PSP Go is a monumental flop made by Sony,if it was PSP 2 it could be understandable,new device,new things
But when you have a much cheaper model on the market,that really does everything,even some things that PSP Go will never be able to do...hmm
Piracy?...lol...PSP Go games are going to get cracked,hacked as soon as they appear
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What nonsense.
Actually, this stock-allocation threat is the sort of thing you hear about in trade mag MCV all the time. You hear of independent stores going out and buying stock from Tesco just so they don't have to turn customers away.
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Although when games are only made excusively available through download, then it's bad news for the retailers and bad news for us consumers too. Considering the outrageous prices MS are charging for the old titles on their games on demand service, I certainly wouldn't want a download only device from them, and likewise Sony for that matter.
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"it relies far too heavily on a customer base that is prepared to pay more for download content than the equivalent disc based product"
I'm all for digital download, the publishers and devs getting a bigger slice of pie, and the death of the cancerous second sale market that looms over our sacred hobby like an apocalyptic shadow. The only problem is that it won't happen until I, the consumer, get a better deal out of it as well. Sony seem to think they can cut out the retailer and keep all the pie for themselves. It's not going to happen. I don't buy things on iTunes that I can get from HMV on a disc for less, I'm not going to buy things from the PSN Store that I can get from Game on a disc for less, and most of all I'm certainly not going to fork out £250 for the privilege of paying more to buy things direct from Sony.
By all means, let's cut out the middleman, but you need to offer me part of their share if you want my complicity in putting them to the sword.
The retailers, on the other hand, are fighting a rearguard action. They must know their entire business is going the way of the dodo, and if they were going to reinvent themselves, they should probably have done it already.
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Errr...okay?
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thats a good point about the price of games from traditional retail outlets in comparison to DD.
The problem is in this case the only place you will be able to get games from is the store - no competition and that = higher prices
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No-one said the approach was illogical, just that it's currently over-priced. I know it. You know it. The fact that MS and Sony also know it doesn't make it any less true.
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No, they are not cast in stone. Neither is it inevitable that DD-only game prices will come down either.
Publishers have been moaning for years about the short shelf-life their products have at full-price - particularly on PC. Since it is the publishers bemoaning it, it is presumably the retail channel (including online resellers like Amazon and Play) themselves which is largely responsible for lowering (or demanding lower) prices on products from publishers through bulk buying, perhaps for special deals, sales, bundles, promotions or whatever.
Up until the dawn of DD, games publishers have been completely dependant on the retail channel (including the online resellers) to sell their products. In terms of power in this relationship, retail had all the power: games publishers and platform holders alike needed to keep the channel sweet: after all, without them they'd sell nothing. But with DD, that will all change.
DD reduces publishers dependance on the retail channel and at the same time grants them the double whammy of completely eliminating the secondhand market, and allows them to maintain to premium price points on their products if they want to. And I'm sure they'll want to.
In a DD-only world there would be no pressure on them to drop their prices: after all it would be a monopoly situation. No dependance on retail, no competition (such as it is) between Game, Play, Shopto or whoever. The games would only be available from the platform holder/publisher/service provider. If you want to buy the product, you pay the price they set. Simple.
I am not a Luddite - I have bought loads of stuff directly from Steam, XBLA, PSN etc. But like Mentalist(air), I am conflicted by the whole retail/DD thing. I guess I think it would be a bad thing overall if the retail games sector were to completely disappear - no matter how convenient DD may be for me personally.
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Ashen - Oh, I don't think the prices are set in stone. I think they'll come down. I think they'll have to come down.
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As someone else alluded to earlier, the pressure on the publishers in a DD-only world would be the same as the pressures on retail now - what the consumer is willing to pay. Retailers don't reduce the prices of games just to stick it to the publishers, they do it because people are stopping buying the game.
If Sony stuck to a DD-only policy for the PS4, with games costing £50, no resale value, no 2nd hand market, and no price reduction on old games, the upshot would be that no-one would buy one of the damn things. They'd buy an xbox if the games were cheaper, or stick with their PS3. Developers wouldn't bother developing for it if no-one was buying it. They'd switch to a rival system or stick with the PS3 as well if that's where the consumers were. Ultimately, market forces will win out. If Sony and MS try to create an extortionate monopoly market, someone else will pop up to fill the gap.
The problem Sony have with PSPGo is that it's not a new system, it's a system that's already available cheaper and with cheaper games. What exactly is the attraction supposed to be?
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Retailers don't reduce the prices of games just to stick it to the publishers, they do it because people are stopping buying the game.
I do agree with you, up to a point. There are many reasons why a retailer might reduce prices on a game: as a loss leader, to clear their inventory, or maybe even compete with other retaliers. And that's the point. At the moment there is a free market dynamic at work here. As a consumer you can choose to take your business to another retailer (e.g. from Game to Play) if the price or the deal suits you better. Or choose not to buy at all.
In the DD-only world (as currently laid out before us on XBL, PSN and Steam), that same free market dynamic no longer exists. The only choice you have is to buy or not to buy at the price and the terms set by the provider ( in conjunction with the publishers). You cannot choose to go to another outlet for the same product for your chosen platform.
For example, if I was interested in buying the (fictitious) download-only Resident Weevel 6 from PSN for my PS3, but I consider the price too expensive, I cannot then choose to download the same product from Steam or XBL for my PS3. Or from any other as yet unnamed provider for that matter. Unless the platform holders agree (or are forced to agree) to open up their networks to competing DD poviders. Which ain't gonna happen... not easily anyway.
In the PC world it could be different: Steam could suddenly find itself with multiple competing providers each competing with each other for the consumers business. It could happen, I suppose, although I think we would probably see exclusivity deals which would render any real competition meaningless.
And yes, as a consumer, I would still have the right not to purchase at all - as I always have had. And if people are not willing to pay then the service may not survive, or prices may come down. But, the providers in the DD-only world know the psychology involved ... they know that probably enough people will still buy at whatever price they set. If they want to play the game, they have no choice (work with me here
I remember the furore over Rock Bands pricing in the UK in these very pages. Many were incensed and there were many predictions that it would fail in the UK on release on price alone. Didn't happen. I'm also willing to bet COD:MW2 will be one of, if not the biggest-selling games of the year despite its opportunistic high price, even with gamers up in arms over the price.
So in the end I guess I just have problems seeing how there is in reality any kind of meaningful free market dynamic inside the current console DD model, with platform holders running DD on behalf of publishers. A cosy cartel is what it is
I mean, we haven't seen GoD prices come down to more realistic levels, and that's the current environment where there IS competition from bricks and mortar outlets and online retailers. Can't wait to see what would happen when games retailers have gone.
Makes me a sad panda :'(
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I'd also have to agree that while many games store employees, are annoying with less games knowledge, they have to eat and pay bills on a minimum wage. They are more in danger of being unemployed, than development staff, who have various skills and a network of friends. Having worked in game retail for a while, it's also a good point to enter and understand the industry, if you want to go further into it. If retailers begin to disappear, then the pool of potential talent for the industry will also dry up and many will have to take more difficult roads into it.
DD won't kill the second hand market though. Even if you can't trade in this years games, it will just resort to trading past physical games. Ebay and Goozex are where past games are still bought, sold and traded, under the radar of all of this.
What should also be noted for reference, is Toys R Us moving into second hand games, now in the U.S, but looking to capitalise on it on a much wider scale than Game Stop, by taking in games from Atari 2600 - present console games. Perhaps Toys R Us see that, by just focusing on the recent games only does no good, especially with DD games on the rise, and this wll also steer clear of the wrath of publishers, with the focus being more retro games than present.
As for PSP Go, I think it will flop, especially when up against iPod and DS. It might interest some because of GT, but beyond that, think it will be PSP business as usual and another Sony third place. Sony still have a lot to learn on various fronts, and until they do, they'll continue to be last and fail.
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edit i cant type.
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Simple, simply increase the profit margin and price of the PSPgo.
Ah... wait.....
TBH I thought the reason that the PSPgo was so expensive was because it ALREADY HAD a increased profit margin for retailers. Guess not.
With regards to the chains like Tescos, well as far as I can see it, they sometimes use game sales as a loss leaders to draw in customers who will also stop to buy a loaf of bread. I'm sure that hardware sales with be inconsequential without software sales for the top 20 and they can find more effective use for the shelf space.
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However, we all know that's not going to happen, as this is all about the smash and grab taking, not the giving. We all will be the casualties of this war.
Another thing, look at the competition, that PSP Go has to face in October. It will get drowned out in the rush for Fifa 2010 and Brutal Legend.
Ah, to choose between the devil and the deep blue sea, I think I'll stay in the boat, if I can't dance with preowned devils.
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As a psp gamer I buy a lot of umd new and trade them in when new games come out, that way everyone is happy. I get money off a new game and hence the developer will get his fareshare and gamestation can sell on the game and make money as well. Its too late for Sony to change the psp go but I think they have made a mistake.
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With PCs getting cheaper all the time, I can see something like Phantom actually becoming an extremely viable prospect. Imagine a console where you could download games from whoever was cheapest, and rip CDs and DVDs to it, and play whatever media you like.
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Well, I'm quite happy to be proved wrong on this, believe me! I'm very conscious that I'm sounding a bit like the nutty old boy in the corner of the pub who sees conspiracies everywhere and prophesies doom and gloom to anyone who passes!
It's interesting what you say about the Phantom. Funnily enough, that console you spoke about where you can download whatever you like, from whoever you like, at a price that suits you, and play whatever media you like sounds a lot like ... well, it sounds a lot like a PC
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That's pretty much what I'm thinking!
The days of a gaming PC costing the best part of a grand are long gone, you can build something pretty tidy for under £400. And like a lot of people, I'm starting to wonder why I'm playing PC games at a desk on a 19" LCD screen when I've got a much bigger one in the lounge with all the right connectors. The PS3 and X360 are both billed as games machines and media boxes combined, but the fact of the matter is that they are by their very nature nowhere near as versatile as a PC. There's huge scope for some sort of PC-in-a-box to become a mainstream fixture, especially if the big console manufacturers try to set up some sort of monopoly stranglehold on their own hardware.
And if OnLive actually works, I need even less kit in my living room.
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Maybe Phantom might be a better answer. A console that's PC based, but not owned or created by MS , Sony or Nintendo. Anyone would be open to create for it, sell their games and make a profit.
On Live sounds interesting, but for me that's taking the content out of my hand once again, and gambling on the speed of my broadband to get my fix. I don't fancy that idea much at all either.
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If (/when) my broadband is a rock solid 100Mb fibre optic line, and if there were multiple content providers to choose from, OnLive services could be wonderful.
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And as an example of how badly DD is getting pricing wrong right now, I refer back to my last purchase - Champions Online;
Direct2Drive has it at £29.95. Steam has it at £29.99. Metaboli is £29.99.
And if on the other hand you can wait 24-48 hours for the mailman, Amazon.co.uk has it at £17.99 with free delivery.
DD the future? Yeah, but in the here and now, I think I can be patient enough to wait 24 hours and save a massive chunk to boot... DD isn't the future if it cannot compete with retail or even mail order. Dress it up however you want, suck its thang as hard as you like, proclaim it the new messiah all you can, it's just not going to happen.
That, I am sorry to say, is why PSP Go! isn't going to work. People like new toys, new games, but the reality is DD is a rip-off. It's too expensive. Developers and publishers alike haven't realised that RRP is one thing but most retailers don't sell anywhere close to RRP - even less so in mail order. And unless they're prepared to sell the game a LOT cheaper than RRP and compete with Amazon and Gameplay and the like, it is a losing battle and DD will have to go the way of the dodo.
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They'd never deserve this treatment as they're doing the right thing in several ways:
- Console price
- Console's new features
- Compatibiliy with existing library
- High street games presence
- Value to retailers
How could this ever happen to them??
/chortle
Sony can't 'do' software and network services.