Sony could cuts the price of PSP Go

Sony Could Cut the Price of PSP Go Before Release

  • This year, Sony announced the price for Sony's new portable hardware - PSP Go at E3. It features 16GB of on-board flash memory and sliding screen, it will go on sale this October 1st for the price of 249 USD and 249 Euros.
  • A corporate source at Best Buy has told us that is likely to be some wiggle-room in pricing for Sony's PSP Go, and they expect the company will announce a slight reduction in price before release. This could bring the price as low as $199, a much more attractive price point for consumers.
  • What is the reason for a price cut?
  • Sony's PSP Go is simply priced too high compared to competitors in the portable media space.
  • Recently, Apple announced sweeping cuts to their iPhone and iPod Nano lineup, which brings the feature-rich 16 GB iPod touch down to $249. Apple even took aim at Sony specifically, calling out the PSP for its high-priced games saying "We're talking about 25, 30, 40 dollars a title. The kids can't afford those titles. Worse isn't the price, it's the buying experience."
  • Microsoft has introduced their new Zune HD device at the more competitive price of $219.99 too.
  • Sony could signal to their competitors that it means business by cutting the price of PSP Go below $199, essentially blowing both of them out of the water. This is what Sony has already done by cutting the price of its home console at $299.
  • One-hundred dollar difference between the more powerful PS3 hardware and the PSP Go might also sit better with consumers, many of whom have expressed discomfort with the near-equal pricing of both systems. A lower-priced PS3 console might bring more people to the Playstation brand this holiday, but kill the chances of the PSP Go as more consumers opt for a powerful home console instead.
  • So the corporate source at Best Buy says that Sony would be "astonished" if Sony didn't change a lower price point before launch in October. The corporate source said that product displays for the PSP Go (which feature the price) have not yet been finalized.
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