PSP Launching Price : Japan 48,000 Yen, UK : ~250 Pounds

Deadmeat said:
Since SCEI can no longer afford to take losses on hardware

Just because Sony won't be selling the PSP at a loss doesn't mean they can't afford to introduce a home console that they will initially sell at a loss.

The PSP is supposed to be "the Walkman of the 21st century" or something, and as a general media device can't rely on first party games sales or third party license fees to recoup losses on hardware. So why should they sell it at a loss?
 
When were they selling for $449? Certainly there were STORES selling for a lot more, or people selling it online for a ton, but I don't recall MSRP being over $299.

he was talking canadian prices. at the time of the ps2 launch, when every system was being sold in a bundle, the average bundle price in canadian $'s i saw was around $700, if memory serves.
c:
 
Quite odd, infact I think Deering just contradicted himself. Just a few months ago he said the price of the PSP would be similar to that of the GBA SP.

Deadmeat, your dreams of a 300 dollar PSP won't happen, I'm going to be laughing my ass of when it's released at 99-150 dollars.

Infact, this whole conversation reminds me of the pre PS2 price hysteria, you know, where everyone thought the console would be 500+ and then were shocked when it was released in the USA at 300.
 
Panajev2001a said:
If in the U.K. they release at £249-279, we can expect $249-299 ( Sony internally NEVER even mentioned more than $299 and that as we now know is not a figure containing much loss ).

Well for reference I was talking about it in "straight value" terms as well, but of course hoping/assuming they be much lower in the US, else they'd never succeed. £1 = $1 seems to carry over pretty constantly from device and software (poor UK chaps :p ), and if the PSP does hit at $250 it will still be a bit high, but not so bad as to keep them away in droves. $150-200 would be the key range--and I doubt it would get in there for a while--but if they start at $250? That would still be quite acceptable for the device it is.
 
Paul said:
I'm going to be laughing my ass of when it's released at 99-150 dollars.
Well, not that I like backing this up, but it is from a front-page story in a UK trade magazine as a quote from the head of SCEI UK (who is about to move to be the head of Sony Europe).

It's either true or a massive feed of deliberate disinformation, which is not the kind of thing I would expect to see in MCV as the UK trade do not take kindly to this kind of thing.

I would go along with Panajev and expect around £230 and $250, unless they are going to insult us in the UK even more than they usually do.
 
Paul said:
Deadmeat, your dreams of a 300 dollar PSP won't happen, I'm going to be laughing my ass of when it's released at 99-150 dollars.

Infact, this whole conversation reminds me of the pre PS2 price hysteria, you know, where everyone thought the console would be 500+ and then were shocked when it was released in the USA at 300.

They also never stated outright "the feeling is that this product should generate profit on hardware alone." Certainly with that in mind, $100-150 I cannot remotely see. $200-250 is much more believable. (And I think still tenable, just will take longer for a mainstream gamer embrace.)
 
At 200-250 it will be a hardcore only device, no parent is going to pay 200 dollars(minus games or a memory stick) for a PSP for their child(By child I mean 12-15) when they can just get a SP which will be like 80 bucks.

Deering also seemingly can't settle on his comments.

He said this in July

Sony's PSP is a formidable sounding piece of kit, capable of playing not only games, but also DVD quality playback of movies, according to Sony's blurb. As such, we'd imagine the portable console would set us back more than a few quid; not a bit of it, however, according to Sony Computer Entertainment Europe's president Chris Deering.
Speaking to a French business publication, Deering said that the PSP would definately launch by the end of 2004, and that the price of the unit would be "comparable" to that of the GBA.


At prices that Deering is now suggesting, PSP will be a failure, you don't pick up market share with a portable priced at the same price of your next generation consoles. It will have a low userbase, hence, developers won't support it as much.

I personally, know Sony is smarter than this, and Deerings comments(he has a history of stuff like this) don't represent what Sony will price the unit at in the USA.
 
Deering stated that the system would diverge from Sony's traditional console business model by being sold at a price which would make a profit on hardware alone, and suggested a price "closer to £200 than £300."

£150 is "closer to £200 than £300". ;)
 
Paul said:
At 200-250 it will be a hardcore only device, no parent is going to pay 200 dollars(minus games or a memory stick) for a PSP for their child(By child I mean 12-15) when they can just get a SP which will be like 80 bucks.

This is true. Hence my concern. Of course I also don't remotely see grade-schoolers and such being the target audience even for the PSP games that would be offered, let alone where its other abilities appeal. I'd expect it to START there from cost concerns--I just also expect it to go down in price as soon as they're able, rather than letting it slide to increase profits until they get into their comfort zone. Offhand, I think $150-200 would sell exceedingly well, and though $200-250 is not optimal, it is probably necessary at the VERY least from the start, and if it makes it more attractive to license later on... so much the better.

Deering also seemingly can't settle on his comments.
This is also true, but costs change and considerations change... <shrug> Nothing's set in stone.

Remember in some ways "cost = prestige" to the consumer, so if a device is supposed to be really powerful and "hi-tech" and appealingly adult in many ways, it not only needs the proper look but a price tag to match. If one is too close to "yesterday's news" you also run the risk of getting thought about along with by some types.

Early adopters and tech geeks and hardcore gamers would run to $200-250 regardless, and though you scare off cost-conscious mothers and young types, adults of all sorts are already spending $200+ without breaking a sweat for MP3 players alone. Why would they not pay that for one that could play MP3's, videos, and be the "uber game machine" of its type?

There's certainly no necessity to rush to displace the GBA as soon as possible, so having its youngest demographics are not imperative. In the US, $450 would be laughable and price it out of reach of most people by the really tech-geekery, but $200-250 would still sell well as a product on its own right--just slower. Meanwhile it has time to build, and time to go down in price.
 
SONY is opening up a new market with their PSP
a handheld entertainment market for 16year + age
like I said before, PsP will be the Playstation of 2004
250$ is a normal price..

(console owners domintated at age of 6 -> 16 years old) when megadrive (genesis) and snes where King

think about this, is it worth more then 2 GBAsps atm ? (130euro for gbasp here)
yes , i think so
 
If this thing is priced over 150 American/130 Euro its dead and gone - no ifs ands or buts about it.

I don't get why Sony is setting the MSRP this insanely high. Everything aboard is either a commodity component or will soon be if PSP is to become a mass market device. Even things like Wireless-B controllers can be ordered in bulk for a few dollars, and massmarket portable DVD players with larger screens can be had for around ~160US, so its not as if PSP should be much more to build - if not much less due to the economy of scale.

As for this being another Sony device for the high end I don't see how that could be true. Those devices use a media format that has already been established, and that's why they can sell at low quanities and still be useful to the consumer - they have a preexisting media base. PSP on the other hand has to introduce new media formats - thus that plan seems illogical.

Only three theories make sense 1) Deering is bullsh-ting us 2) This thing will fall dramatically in price within 18 months or most likely 3) There's little dev interest and they're trying to cash out as quickly as possible while they can.

This is uber-disappointing. :cry:
 
Well, considering iPods sell in the millions at prices ranging from 250 USD (10 GB) to 500 USD (40 GB), I don't find it unreasonable to expect a device that plays games (at about PS2 level performance), movies, and music to cost 48000 Yen. Plenty of CLIEs that sell in that range that do a lot less (several 100k volume).

Granted, these volumes are a lot lower than the tens of millions of GBA/GBA SPs out there, but maybe we need to stop thinking of PSP as a gaming device and more as a multimedia device.

Here's what I hope will happen - no evidence to support it, but it sounds reasonable to me. PSP launches in Japan at that price - 48000 Yen, or something close to it. PS1 launched at a similar price, about 500 USD exchange rate. Because cost of living is higher in Japan (anyone who's been there knows), 48000 Yen is not that expensive. High uptake in Japan, the same way the PSX is selling now. This gives Sony an opportunity to lower the price through volume sales. It hits the US later at 300 USD (or so), the same price as PS1 did. Optimistic dream? Perhaps.
 
I don't really think sony targets kids with this device. For them, its their idea of a walkman next and i don't think 300-350?s will make it overprieced on release. Ipods run for that in europe and they are quite successful
 
Considering the built in functionality (games, mp3, movie, wireless) of PSP I would expect a much higher price than a GBA but over $300 US would be too much I think.

Perhaps they should have a 'lite' version for the kids.
 
Deadmeat:

> Nintendo has nothing to fear from PSP.

PSP will at least sell to gadget freaks and Sony whores. Both are force to be reckoned with. Even if the price is offputting the introduction of the system can still hurt Nintendo if Sony manages to convince people that it is better than what Nintendo has to offer. Those swayed by Sony may not buy the PSP because of the price but they may not buy the GBA either because they now see it as inferior.

There is every reason for Nintendo to be concerned about PSP. Even if it fails to succeed it still has the power to destroy.



hey69:

> a handheld entertainment market for 16year + age

That's what it's being positioned as but let's wait and see what happens.

> think about this, is it worth more then 2 GBAsps atm ?

At the moment it's worth nothing - no hardware and, more importantly, no games.



akira888:

> I don't get why Sony is setting the MSRP this insanely high.

Because it will be expensive to manufacture and Sony can't afford to take a loss on it. I've said it all along and Sony realizes it as well.
 
this is not good at all and will not put any presure on nintendo.

I was hoping for a sub 200$ launch so that nintendo would drop the gba sp to sub 75$ bucks .

Not only that but with such a high price they wont sell through as many systems which will mean weak support and will give nintendo a chance to launch with an impressive launch tittles for whatever new system they want while under cutting sonys price.
 
I´m dissapointed to tell the truth, if this turns out to be PSP´s final price anyway.

I was expecting the device to be $179.99, and the price being reported doesn´t scream "I want to challenge the GBA in its market AND open up a new one with the older crowd for me", but rather a "well, I´m just another high tech gadget with a big price cut with no ambitions".

It also has to be appealing enough (market and spec wise) to attract content, and what if this thing doesn´t sell well? I think this thind is doomed.

And the handheld market will remain as steady, uninteresting and stalled as it has been for so long...which I suppose its good for Nintendo fans and their anti-technology position, but not for me. Oh well, I´ll just forget about handhelds once again...too bad, PSP sounded very interesting.

I just hope this price is BS.
 
...

panajev

Act like you never heard of Sony keeping £1 = $1 with their products lately...
PSX2 : 114 pounds(VAT not included) in UK, $179 in the US

It is the VAT that's jacking up the European prices.

If in the U.K. they release at £249-279, we can expect $249-299
And what do you make of Japanese launching price of 48,000 Yen??? Kutaragi rips off poor Japanese consumers???

Deadmeat, I would also like to point out to you ( as if you listened to me ever ) that the PSP's SoC will be shrinked to 65 nm not too long after its introduction
Unlikely. 65 nm fab capacity is limited and all reserved for CELL. PSP will not migrate to 65 nm until CELL migrates to 45 nm some time in 2007~8.

I would not be TOO worried about performance of the PSP or Sony's e-DRAM process as the new thrench capacitor approach for e-DRAM they developed with Toshiba
Not applicable to 90 nm process. And PSP ASIC is a 90 nm product, not a 65 nm product.

So how large is PSP ASIC going to be???

1. Take a PSX2OAC measuring 86 mm2
2. Triple the eDRAM(or more)
3. Throw in an H264 decoder.
4. Throw in a DSP.
5. Throw in a second MIP CPU.
6. Throw in a wireless LAN logic.

And what do you get? A beast exceeding 200 mm2 in die size. Back to the glory days of first-gen Emotion Engine fab days.(Which you may remember as having costed something like $120 a piece to fab)

Oh, and when they were making projections when they were working on their 130 nm manufacturing process they expected to push their technology to the level of a 600 MHz SoC to have 256 Mbits e-DRAM... PSP shoots for 333 MHz
Which proves your projection was wrong.

Paul

Quite odd, infact I think Deering just contradicted himself. Just a few months ago he said the price of the PSP would be similar to that of the GBA SP.
Well, that was before the restructuring and cash-crunch....

Deadmeat, your dreams of a 300 dollar PSP won't happen
You are right, it will cost more.

I'm going to be laughing my ass of when it's released at 99-150 dollars.
And how is SCEI is supposed to make a profit off at a price of $150 when it costs over $300 to put one together??? Did you not hear? Kutaragi said he had no plan to lose money on hardware anymore. Deering is saying the same thing.

Infact, this whole conversation reminds me of the pre PS2 price hysteria, you know, where everyone thought the console would be 500+ and then were shocked when it was released in the USA at 300.
That's because PSX2 cost $500 to build and SCEI ate $200 loss per machine. Those days are over according to Kutaragi and Deering. SCEI has no cash to lose on hardware. It even resorts to issuing bonds to finance CELL R&D.
 
jvd:

> Not only that but with such a high price they wont sell through as many
> systems which will mean weak support

The first shipments will sell out no matter what and after that anything can happen. Support will come automatically since it's from the makers of the PlayStation. Hell, look at the kind of support Nokia has managed to get for the N-Gage... and it's increasing eventhough software sales for the system are truly crap. You're kidding yourself if you think Sony will have any problems with support.



Almasy:

> And the handheld market will remain as steady, uninteresting and
> stalled as it has been for so long

Uninteresting? The best games this generation are on the GBA.

Stalled? Sales are better than ever.
 
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