see colon said:
PSP is very low cost for what it does.
is it?
I think it's a good start.
Besides, Sony's on to something here.
They weren't looking to build just another portable games machine. They want the "Walkman of the 21st Century" - something that will reach far beyond the traditional portable games market. That means the addition of music, movies, photos, and possibly internet capabilities.
They're essentially creating a new market with PSP, as opposed to merely competing in an existing one. And because PSP is unique, yes, Sony can charge a higher price for it. (Though I'm not sure how much, if any, money they're actually making on each unit sold.)
So while for now, the price may be too high for most, the price will drop in time. It will become more affordable. Then the price will drop again. And in a few years, by the time PSP is selling for $129 or $99, Sony will have tapped into an untapped market, and they'll have just that much of a head start on competitors (I can just imagine a new model of iPod being drawn up right now).
Eventually, PSP 2 will fix some of the current unit's problems - by adding a hard drive, for example. And then the cycle will begin anew.
Boom - they've got their new "Walkman." Essentially by taking the Game Boy idea and expanding it with features that appeal to everyone.
Their whole approach reminds me a lot of how they got into the home console biz in the first place, only I think the "personal, portable media machine" market will ultimately prove to be a hell of a lot bigger.
Time will tell, but for the time being, I personally feel the cost is worth it. I'm an early adopter to a new kind of machine - I expect to pay more.