Pachter says Sony is 'ripping off' consumers with PSP Go

Wedbush Morgan analyst Michael Pachter hates the PSP Go. Alright, alright, he doesn't quite hate it, but he does despise its price point. On a recent episode of Bonus Round, Pachter matter of factly states, "$249 is too much. Period." He goes on to say that while the handheld is priced to compete with Apple's $229 8GB iPod Touch, it doesn't deliver the iTunes App Store or downloadable music from iTunes (as conveniently, at least, as the iPod Touch).

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DasBunker3395d ago

its too damn pricey i agree, its basically a smaller PSP... shouldnt it be actually cheaper? its like if sony started selling PS3 slims at a higher price than the older models WTF?!..

"Pachter says Sony is 'ripping off' IGNORANT consumers with PSP Go"


Blaze9293395d ago (Edited 3395d ago )

There's really no excuse for why the PSP Go! was priced as it is. And good example, if Sony made a slimmer PS3 and they charged it at $400/$500, everyone would look at them like something was truly wrong with them. So what's different with the PSP Go!?

PSP 3000 Black Retail - 169.99
Remove UMD mechanism, lets say -20?
Smaller LCD, lets say -10

Now add 16GB flash, $33.99 for a 16GB USB flash

Comes to: $173.98

Megaton3395d ago

Think this is the first time Pachter has ever been right. PSP Go should be $200.

Elven63395d ago

I kind of agree with him on this one but Sony needs to recoup a lot of money (see 2 billion loss), this is one of the ways for them to make it more bearable.

mephman3395d ago

$250 isn't even the start of it, it's also €250 and £250. Europeans are getting much more shafted than Americans, as per usual.

rockleex3395d ago

A relaunching of the PSP. It still doesn't make sense for them to charge that much.

Unless they are packing in some hardware features we don't know of? 3G maybe? *dreams*

But if that dream came true, I'd definitely buy a PSP Go.

XGRaViSmOrSX3395d ago

i think pachter needs to just go away. he is a useless person in the industry and i take anything he says w/ an absolute grain of salt.

durrr i can predict things that never actually turn out that way....i hope people dont actually pay this man for anything.

3395d ago
zodiac9093395d ago

does anyone consider the technology in this thing?

Tony P3395d ago

Been avoiding it like the plague so far.

I didn't think the Go was marketed towards core gamers really. I mean it's a more expensive version of the PSP with UMD functionality sacrificed in the name of DD. Add to that the 80% reduction in PSP dev kits and I assume Sony wants smaller games by smaller devs to support its Go ala the iPhone. Could be off, but we'll see what unfolds. The quality of games will speak for themselves.

BattleAxe3395d ago

The PSP GO will be a novelty item when it comes out, so they can get away with it. If you don't want to spend that kind of money, then buy a PSP 3000.......whats the big deal. Sony needs to make money, thats why they're in business.

Michael Pachter is an idiot, a Microsoft fanboy and is almost always wrong.

The Lazy One3395d ago

They fixed RROD for free and paying less than $4 a month for an online service isn't that bad considering the number of features they're using the money for.

All Time Greatness3395d ago

Xbox Live is the cost of a Mcdonalds meal a month(probably less). Your only complaining because you do use don't get the features XBL has.

njr3395d ago

Patcher is resorting to obvious statements since his recent predictions have been wrong

Lifendz3395d ago (Edited 3395d ago )

Nintendo ripped off consumers by selling them a gamecube for 250 because of it's motion controller.

MS ripped off consumers by charging you to get online and selling a console with the highest failure rate ever.

Just like an MS fanboy or Wii fanboy would say, you don't have to buy it. I'm not buying a PSP Go. It's overpriced and I already have a PSP. In fact, I'm just waiting on a pro duo 16gb to go for under 30 on Ebay to pick one up so I can be ready to start downloading games.

IdleLeeSiuLung3395d ago (Edited 3395d ago )

What does MS has to do with this? Why does every article has to be MS vs. Sony?

Pachter is talking about how PSP Go cost about the same as the current PSP to manufacture, yet Sony hiked the price $80. I kind of agree here, as far as I know the PSP Go has less features (unable to take UMD), but cost almost 50% more. Has a smaller screen, unable to play homebrew and is a more profitable business model for Sony.

On the other hand, if you don't like it don't buy it. Vote with your wallet.

Time_Is_On_My_Side3395d ago

There is one reason why Sony did it, maybe it's for profit. If someone owns a clothing store and once they get the clothes depending on the quality of the product will determine how over priced it is. Why would a company sell a product for the price they bought it at or the exact price to make it?

Patcher obviously doesn't understand the concept and is why XBOX 360's add-ons are so expensive, $199.99 for a 120GB while I can get one for $99.99 with 500GB or better yet for around $200.00 get one terabit (1,000GB). All products are overpriced, what really matters is if the competition touts better value?

Narutone663395d ago (Edited 3395d ago )

is high, but I don't expect it to be that price when they start selling it. It'll probably be lower than the $250 price point as I believe it is MSRP. Expect street price to be lower.

TapiocaMilkTea3395d ago

Just wait a month or two, the price will drop dramatically if there's no demand. I believe it will be $200 in no time.

DelbertGrady3395d ago

$249 isn't that much, if you get a third job lol!

All Time Greatness3395d ago

lol @ Soda popinsky's avatar.

I should get one that says "599 US Dollars"

Traveler3395d ago

I love my PSP and was considering getting the PSP Go, but honestly I was shocked at the price and the lack of true improvements. It has a smaller screen, can't play UMD movies or games and yet they expect us to pay more for it. The only thing I like better about it is the built in 16GB of flash memory. Sorry, I'll stick with my fat PSP that can play homebrew and can still play the good games coming out.

Sarcasm3395d ago (Edited 3395d ago )

The only people really getting ripped off this generation are people who have to buy $100 Wifi adapters and overpriced HDD's.

Although I agree, the PSP Go should have been $200.

ChrisGTR13395d ago

:D there you go sarcasm , you said it like a true hypocrit fanboy.i bet sony is so proud of you right now.

"The only people really getting ripped off this generation are people who have to buy $100 Wifi adapters and overpriced HDD's.

Although I agree, the PSP Go should have been $200."

FamilyGuy3395d ago

Where was this guy when online retailers (because they didn't sell them in stores) were selling 2Gb Pro Duo cards for $250?

It's a terrible price no doubt (wii cost $250) but i wish this guy would just STFU.

The only addition i remember being added to the Go! is the blu-tooth support (and of course the 16Gb internal flash memory). It DEFINITELY should be lower than this.

SuperM3395d ago

There is an excuse. Its simply a hotter piece of tech. People want a smaller version that they can fit in their pocket without a problem. And it has 16gb internal memory which makes it ideal for an on the go media player. if you need more it supports memory sticks. Basically Sony is ripping of the consumer because they want to earn money on their gadgets. I guess since the PS3 has been sold for under the production cost for almost 3 years now it would truly be ripping of the consumer to sell something that actually cost more to buy then it cost to produce. As long as people think its worth the price then its not ripping people off. I mean look at the ipod touch/iphone. Overpriced? probably. But ripping the consumer off? Well it doesnt seem like the consumer thinks so, because they're buying it.

Foxgod3395d ago (Edited 3395d ago )

You people are forgetting the development costs.
You cant just dissect the psp go and say, oh, it got no umd drive so it should be cheaper, it got a smaller lcd so it should be cheaper.

Its a new product, and it cost sony quite an amount of cash to develop the psp go.
Research and development is a very expensive process, and they first have to earn that money back, before they can lower the price to match the production costs.

So in this case, Pachter is wrong.

SaiyanFury3395d ago

Normally, I'd not consider getting another PSP as I'm happy with my 2 1001s. Under normal circumstances, I'd never consider getting another one. Except that I have over 40 PSP games and UMDs can become somewhat bulky to lug around when I'm traveling. A digital only device might help alleviate that as it's only got an internal flash card that's expandable through memory cards. I don't approve of the higher price point, but the convenience afforded to internal memory could be very convenient for us PSP gamers who have a lot of games. The PSP Go, might be a decent alternative for those of us with more games than space. Again, I don't like the price, but the space afforded might be worth it.

callahan093395d ago

I agree with FoxGod. They're going to need to charge more for launch to recoup a lot of development costs. I predict that shortly after launch they'll drop the price to match actual production costs, having recouped R&D expenses.

Syronicus3395d ago

The most vocal vote of them all is the one vote heard through your wallet. If they do not sell well then it must mean the price is not right. I suspect though that with Pachters record of being wrong more often than not, the PSP Go will sell like frigging hot cakes in Japan and sell very well in every other region. I'm even considering one just for the size and Blue Tooth compatibility. Heck, you can use your Dual SHock now without the cord!

cryymoar3395d ago

Anyone up for starting a petition?

AAACE53394d ago

When I gad a PSP, I found that I rarely played it. Alot of the games didn't stand out too much. And even though my Psp costed $200 when purchased, I was only offered $50 for it as trade in!

Now, with the Psp go, they want someone to pay $250, and not be able to buy any of the cheap used games or movies, but will instead have to buy everything as a download.... I don't think this is a good idea!

But maybe Sony knows their customers better than I do...

Sharingan_no_Kakashi3394d ago

Considering all the specs that the psp GO has that the 3000 model doesnt i'd say the price is fair. I havent owned a psp yet but i'm considering the GO now. 16 gigs, blutooth, and an now you can get into the psn store from it.

Rainstorm813394d ago

What about the Iphone - 500$ - 600$ (and the PS3 was overpriced yea right)
Blu Ray players - 800 - 1000$
Wii - 250$ (gamecube with motion what a rip)
Wii + best accessories 400$+
Xbox accessories - 100$ wifi 299$ HDD

I remember when PS2 released and people said 350$!!!! thats too much for a console! yet DVD players were like 300 - 500 dollars.

The PSP GO! attacts those who are just joining handhelds (like me) but as for movies and music (as patcher said when he compared the iphone to the psp on GTTV Bonus round) One thing about the PSP i can download music and movies and put them on PSP just like i do with my PS3. All i ask is PSP DIVX support although it wont happen because of the PSN movie store

250 is a bit much but i feel better paying 250 for the PSP Go than paying 250 for the PSP 1000

Tiberium3394d ago

This coming from the ONLY company that charged $600 for a console, doesn't surprise me.

callahan093394d ago

@Tiberium: The Panasonic 3DO was 700 at launch, and the Philips CD-i was 1000 at launch. Sony isn't the first to have a hefty price tag on their gaming console, they're just the first to be successful.

GavLam883394d ago

This is fundamental business pricing. Whenever a new product is launched onto the market, a company will take advantage of the consumers that want the 'latest' gadget and will pay the full price. I reckon, this is Sony's opportunity to recover some profit (if they are still making a loss on the PS3). Trust me, the price of the PSP Go will drop fast after the initial launch of the product once they realise that consumers would rather pay for a UMD PSP that is cheaper rather then the PSP Go. Once that is clearly indicated in sales, i bet it will drop below the ordinary PSP.

Anon19743394d ago

Is that "ripping off" the consumer as well?

Obviously the interviewer pushed Pachter to provide that lovely quote and he fell for it. Is it wrong for Sony to want to make money off their product?

HoofHearted3394d ago

...because the PSP Go is not a necessity. No one NEEDS to buy a PSP Go. Everything is right out in front. I don't like the price either, but I will buy one DAY ONE and so will plenty of other people.

As a matter of fact I went into a local Gamestop AND Game Crazy and while neither had the preorder yet, they said I had better get in fast once the preorder goes up because the amount of people asking about it has been astounding. Like most other hardware, if you don't preorder, you aren't getting one for a few months after release.

So there IS demand even at the 250 dollar price point and there has always been a famous phrase that people who talk about rip offs should remember. Something is always worth as much as people are willing to pay for it.

You may not like it. I certainly don't like it (I thought it would be about 200 bucks). Pachter may not like it (when was the last time he was right about anything though). With all that being said, no one is being ripped off. That's nonsense.

f7897903394d ago

Something is horribly wrong for me to actually agree with one of them. How do you even become an analyst?

thesummerofgeorge3394d ago

It's too expensive, that's a given.... The only good reason to make the PSP Go would be to have a cheaper version of the PSP.

cherrypie3394d ago

Sony is ripping off it's PS3 and PSP Go buyer. This is clear.

Alvadr3394d ago

God, here we go again. If you feel its too expensive then DONT BUY IT! Jeeez.

No one is making you buy it. It will come down in price once Sony has skimmed the market enough.

All-33394d ago

Hasn't Sony in fact removed features both in hardware and software in later revisions of the PS3, and charged the same prices after the 'clearance' sale during the phase out of the 20GB and 60GB PS3 models?

The current 80GB and 160GB PS3s lack the PS2 Emotion Engine hardware or any PS2 software emulation, as well as the 2 extra USB ports, flashcard readers, SACD support once found in previous models.

With the PSP GO... Factor in the cost of all new accessories. The Go lacks a standard mini USB port on top, meaning things like PSP keyboards and Sony's GPS accessory are useless, and current A/V cables and chargers won't work because of a new multifunction port on the base. So how much with all the extras included?

+ Show (42) more repliesLast reply 3394d ago
V0LT3395d ago

Pachter is ripping off the people who pay him for the ridiculous amount of money he makes to be wrong.


I agree with patcher....the psp go is way over priced...just like another sony system...i know what it does but i want to play games on my console is that too much to expect from a game console

HDgamer3395d ago

pachter doesn't get paid for being an analyst.

sarshelyam3395d ago

...because he'd be wasting their money!

SuperM3395d ago

You think the PS3 is overpriced? You cant overprice something when it cost less to buy then it cost to produce. Sony needs the PSP to stay profitable. Infact its the profit from the PSP that might allow them to cut the price on the PS3

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Droid Smasha3395d ago

sony would never rip off there customers


PeptoBismol3395d ago

you're not even a gamer. you spend more time trolling sony articles than actually playing your 360

user39158003395d ago

Sony its an anarchy for idiots and followers. True be told, almost all sony products are: overpriced, low quality/unreliable garbage, the king of marketing lies, customer service suck, they love to rip the consumers, sony executives are a bunch of morons, PS3 lost E3 again, PS3 BBQ Grill its a yellow light of death- blu crap player- a great dust magnet and and the gaming division inferior to the competition.

Stick to the facts people, finalizing the story of Ps3 fanboys are hiring from the market, seen holding their legs out of shame, grieving over substantial hypocrisity and would like to comvert to the 360, but they wont, because they are a bunch of fruitcakes.

theKiller3395d ago

he finally got something right!! 250 for psp Go is not acceptable!!! they should have made it max 200!!! anyway the other option is available too!!

TheBand1t3395d ago

For once I actually agree with Pachter.

200 dollars would've probably been more reasonable.

n4gn4gn4gn4g3395d ago (Edited 3395d ago )

Is he an analyst or a consumer advocate. STFU and analyse. While your at it you can call out NIN for adding $5 worth of cameras and bumping the dSi price by $60.

How much is a 16GB Zune or iPod?

Darkfocus3395d ago (Edited 3395d ago )

I don't know how he keeps his job hes the one that predicted sony would take the bluray drive out of the ps3 to cut cost /facepalm XP
Plus I don't here him complaining about Xbox's overpriced accessories,Hard drive,wi-fi,controller chargers,live ,etc

sarshelyam3395d ago

...I remember him predicting a PS3 without a Blu-Ray drive. Does this guy even know what technology is?

Chubear3395d ago (Edited 3395d ago )

The Damned Wii is still at $250 price point. No cuts what so ever, charging ridiculous amounts for 25yr old games on Vcon when they should essentially be free unlocks after beating Nintendo wii games and not once I saw Patcher talk about that one. It's as if there's no other choice than a $250 PSP.

If you think the PSP GO is too expensive at $250 then get the 3000 @ $169 or the 2000 @ $149. People acting like Sony PERSONALLY slapped their mother cause they choose to put THEIR own price tag on THEIR own product are being daft. Hey, I would have liked it to be cheaper, hell, it'd be brilliant if I got that and the PS3 for free too but this is business is it not?

It is obvious Sony got the pricing right for their business when you see the amount of people that have already pre-ordered this puppy

MS still charging it's fanbase $50 per year for something that should be free, does Patcher talk about that? Does he talk about how insane it is that MS is selling their DVD based games at the same price as Sony's PS3 Blu-ray? Hell naw!

ChrisGTR13395d ago

well if you think about it, whats to stop sony from allowing third partys to print their games on a dvd disk? the ps3 plays dvds so whats the problem? all multiplats fit on a dvd cause of the 360 so why not release the ps3 version also on dvd. the only problem is if the new ps3s dont play bluerays then they cant play old games.

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