PSP Go is a Rip-Off Says Industry Analyst

[Webs961]

Sony's latest iteration of the Playstation Portable handheld system carries a much heftier price tag than its older brethren -- $80 heftier in fact. Sony has made it a point to incorporate new technologies into the PSP Go, allegedly adding additional value to the newly reworked PSP. Not so says leading industry analyst Michael Pachter -- the newer PSP costs Sony less to produce than the older first gen PSP:

The cost savings, Pachter said, stem in part from Sony's decision to replace the current machine's UMD drive with 16 GB of Flash memory.

"The $169 PSP...is a profitable device. They make money," he said. "The disc assembly costs more than 16 gigs of flash does. So this new device doesn't cost them as much to make, and they're jacking up the price $80."

The question is, will the new PSP Go, with its added speed advantage over the traditional disc assembly, compel consumers to shell out the additional $80?

Source: Yahoo! Games

[=)BiT(= Evant3k]

Re: PSP Go is a rip-off says industry analyst

We have seen this with Nitendo in the recent months as well. The Nintendo DS has been reworked in the same way, eliminating the cartridge slot and adding flash memory, creating the Nintendo DSi. I think just because its a new product you can put a high price tag thats perfectly reasonable.

its not the cost of manufacturing that sets the price it's the demand for the product.

[BobTheJob]

Re: PSP Go is a Rip-Off Says Industry Analyst

No, really?

Seriously, there's a reason I haven't bought any of the new versions of the DS. My old big clunky one works just fine.

[TheEn|gma]

Re: PSP Go is a Rip-Off Says Industry Analyst

Didn't factor in the R&D costs by a quick glance, though I have no doubt their making as much money on it as possible, they are business first after all.