Retailers tell Sony: change PSP, or else
by Andrew Yoon 
{ Mar 15th 2007 at 1:30PM }
According to 1UP, retailers have been telling Sony to change the PSP, or else they'll stop carrying the machine altogether. Shipments of the system plummeted about 72 percent from the year before, with a meager 10,000 machines shipped to retailers last Fall. (Of course, the system has gained much more momentum at the beginning of this year. Looking at hardware sales, one can see that the PSP is still doing well--just not as well as the DS.)
Retailers have supposedly asked that Sony reduce the price of the PSP, but apparently, there's no plans for a price cut. At the Destination PlayStation event for retailers, Sony announced something else that got retailers excited: what it is is unclear at this point.
The theories have ranged from new system colors, new bundles, to a new system redesign. Hopefully, we'll see more when the PSP's second anniversary comes up on March 24th.
[Thanks, Aaron!]
Reader Comments (Page 1 of 1)
Tristan @ Mar 15th 2007 1:42PM
What are they complaining for, people are still buying it, more now than ever, it isnt like it is the next Ngage or something.
pixelator @ Mar 15th 2007 2:00PM
Where do they get THIS figure?
"Sony's PSP hardware shipments to retailers last Fall were down 72 percent over the year before, only a meager 10,000 units in the U.S."
Because that sure as hell isn't borne out in that graph above, or any other figures I've seen posted.
Can you say FUD? The article also erroneously states that the PSP price was 'lowered' by $50 last year, when in reality it was the $199 Basic Pack lacking a game or accessories that made it seem that way. technically speaking, other than some bundles being phased in or out and varying in price, Sony has not actually lowered the PSP price since launch. The Basic Pack is still the same price.
So, given the fallacious bits, I call BULLSHIT on the core 'evidence' they present: "word is that a few big name retailers have given Sony a mandate: drop the price or they'll drop the system from their stores. Entirely."
That part could've been a pissy Nintendo fanboy Gamestop employee or a retail rep on the GDC floor. Who knows? I seriously doubt that Target, Wal-Mart, etc. are poised to 'drop the PSP entirely'.
Andrew Yoon @ Mar 15th 2007 2:11PM
Remember: all talk of illegal software downloads will lead to a ban.
Adam @ Mar 15th 2007 2:34PM
Sony is going to change something, it's just a matter of when. Personally, I think we'll find out on the 23rd, not the 24th. Wouldn't it be perfect for Sony if inside the European PS3s, there were details about a PSP2? Who knows, it's just a guess.
Alien @ Mar 15th 2007 2:36PM
What software downloads ? Anyways , I agree with pixelator , the difference between price is that they took out the bonuses from the value pack , which was 250 $ and made it 200 $ The 250 $ for the core was only in 2005 , and not 2006 . And I also cant bealive that big retailers will just let go of the PSPs .
txa1265 @ Mar 15th 2007 3:26PM
Re #2. "Sony's PSP hardware shipments to retailers last Fall were down 72 percent over the year before, only a meager 10,000 units in the U.S."
> pixelator: this is where the 'shipments' vs. 'sales' thing comes back to bite Sony in the butt! They are constantly touting shipments in order to inflate their numbers while others cite sales (e.g. Monster Hunter 2 *still* hasn't SOLD 1 million copies). They sold hundreds of thousands of PSP's based on numbers you and I have seen ad nauseum. But they only *shipped* 10,000 because the stocks were so over-full that nobody needed more.
And that lack of shipments is directly related to the PSP being unable to meet sales expectations. (that is how a forecast model works).
"The article also erroneously states that the PSP price was 'lowered' by $50 last year, when in reality it was the $199 Basic Pack lacking a game or accessories that made it seem that way."
> But your 'seem that way' is important. To the consumer it appears that the price is lower - they used to see it advertised at $249, now all adverts are at $199.
As for anyone dropping the PSP, I also doubt it, but really, given that:
- The PSP has the lowest attach rate of any current system (can't find numbers now)
- All retailers managed to do for the last quarter of the year was clear existing inventory
The PSP might be doing 'ok', but those facts don't send much of a positive message about why retailers would like to give the PSP shelf space.
Look at a place like Walmart - they give the same space to the GBA, DS and PSP. Initially they gave the GBA & DS combined space, then crimped the GBA, then expanded them to take over the GameCube ... but now with the Wii, XBOX360, PS3 all out, and the PS2 still the hottest thing going, and with sales of XBOX and GameCube games still doing OK, shelf space is tough.
Oh, and some 'attach rate' numbers:
- For 2006, in the US the PSP had 1 game in the Top 50 sales, GTA:LCS @ #37 (690k). The DS had 8, the XBOX had 2 and the Cube & GBA also had 1 each.
- For 2006 in Japan the PSP had 2 games in the top 50 that combined for 800k units, whereas the DS had 25, 8 of which sold more than 1 million (2 more than 4 mil).
- So far in 2007 in the US, the PSP has 2 games in the top 50, whereas the DS has 12.
- So far in 2007 in Japan, the PSP has 5 games in the top 50 including the #1 Monster Hunter 2, whereas the DS has 29.
pixelator @ Mar 15th 2007 4:38PM
txa, lots of distributors use shipped numbers. It's not just Sony. Nintendo's figures aren't all exact, either. Sell-through at the retail level isn't commonly known. Even NPD figures are only trend-indicative due to their lack of tracking online and Wal-Mart. The graph above does not, I believe, reflect Sony shipped figures vs. sales but NPD figures which still show a consistent GROWTH instead of a 72% DROP (ridiculous).
Monster Hunter isn't a Sony product, so its shipped vs. sales figures have nothing to do with this.
The PSP has not changed price. Period. 'Seems' or not due to Value Pack deletion is irrelevant. Sony has not changed the price of the system and 1UP is wrong to say they have. Just as I STRONGLY suspect the 'shipments down 72%' from Fall 2005 to 2006. If someone can show that they're right, I'll recant. Otherwise, the NPD chart says it's FUD.
As for DS vs. PSP attach rate, so what? It's not the phenom the DS is. It's still doing *well* in sales and not as great in attached software but still OK.
pixelator @ Mar 15th 2007 5:27PM
Quick addendum:
My point is, the article, while it could be interpreted to be based loosely on a generally valid premise (PSP software sellthrough is mediocre and unit sales are nowhere near the DS), is factually invalidated by bumbling into that unfounded '72% drop since last Fall' blurb and false '$50 price drop' comment.
In short, because their facts aren't straight, I don't believe the rumor that ANY 'major retailers' are 'threatening' Sony over pulling the line. It's another FUD piece made to make Sony looks bad (again).
required @ Mar 15th 2007 4:57PM
"...according to our sources...retailers have supposedly asked that Sony reduce the price..."
Who are your sources 1up.com and who are the retailers they refer to?
My hunch is that this rumortorial was written by a nintendofanboy.
txa1265 @ Mar 15th 2007 5:06PM
pixelator:
- While everyone 'cooks the numbers' somewhat, Sony seems to be the ones constantly touting numbers loudly that don't hold up when the sales figures come through. Most everyone else matches well.
- The 72% shipment makes sense, but is irrelevant - you can't buy stock options with 'shipments' ... and just looking quickly at sales numbers there is something funky - even US sales would show a 36% drop 2006 vs 2005 in raw numbers. I would assume it to be that the stores were over-stocked. But then the 6.2Million figure looks like whole-year sales ... again, funky.
- Before the 'value pack' if you wanted a PSP it cost $249 period. Now you pay $199 - and get less. Sure the same thing costs the same price, and in that regard you are completely correct. But markets move on perception, and the perception is that the PSP has had a price drop of $50.
- Software sales matter considerably, as they bring people into stores. Again looking just quickly at the US charts, the PSP came in just slightly above the XBOX and GameCube for the quarter, and below the DS by ... a lot. For a retailer, attach rates should at least scale - and a kiddie system should have a lower attach rate because kids don't buy the games and parents won't spend on the games like kids would themselves. So to have the DS outpace the PSP so disproportionately matters, and all plays into the possibility of retailers dropping a gauntlet.
Of course, fundamentally I agree with you that this sounds like BS, probably someone made an offhand remark that if the hardware and software trends continue like they are then Sony is in danger of losing PSP shelf space, and hysterical media people saw 'STORY' everywhere ...
pixelator @ Mar 15th 2007 5:09PM
Checked a NeoGAF thread. Looks like 1UP is focusing on a limited period shortfall due to overshipping from the previous quarter:
"This is nothing new. We knew Sony shipped 10k units, because they overshipped prior to that. It's going to balance out in a month.
Jesus...this week just couldn't go on without an inflamatory Sony article."
"2) HW Sales are still more than respectable and aren't the problem. They've already surpassed the GCN worldwide sales and within a very short time will surpass the Xbox in a matter of slightly over 2 years."
...Which does underscore the fact that the software sales ARE the problem, but still unlikely to be fueling some retailer driven 'revolt' as 1UP indicates, as this poster seems to agree with:
"I can guarantee that the "threat of being dropped" is pull bullshit. I can imagine retailers are pressuring Sony, but the sales are so far beyond Xbox & GCN worldwide it's not even funny."
pixelator @ Mar 15th 2007 5:47PM
Bottom line though, I agree software is crucial, and it's the major weakness for the PSP right now. But I still say the $50 price reduction comment is fallacious, and 1UP ought to know better.
SuicideNinja @ Mar 15th 2007 6:25PM
The source may be questionable, but the intent is correct.
Sony really needs to lower the price of the PSP in order to better compete with the DS. $150 is about right. I bought mine for $125 used, and while I think that is too much for what little I've got out of it, there are those who would actually use the PSP and its "features" regularly. They would grab it at $150 in a heart beat.
Mr Khan @ Mar 15th 2007 6:40PM
An observation:
PSPfanboy is the only website i've ever seen where the commenters (fanboys)flame the fansite
On topic: I wouldn't see how this is true, PSP does well enough worldwide, it fills the role of the Xbox and GC of last generation, second fiddle, purely acceptable (speaking as a GameCube fanboy)
pixelator @ Mar 15th 2007 7:56PM
Look, we're really beating a dead horse. I think the 'intent' of this article is to just bash Sony and spread fallacies, to wit, a fabrication that 'major retailers' (conveniently unnamed) are telling Sony they're not going to carry the PSP line unless they drop the price - which I think is complete and total horse shit.
If you were to say the PSP needs a price drop, I'd agree. If you said it needs to move more software units, I'd agree with that, too. But this article isn't saying just that - it's making shit up through distorted sales data, a price drop that never happened and this totally unlikely story about bailing retailers.
"I bought mine for $125 used, and while I think that is too much for what little I've got out of it"
What a SHOCK that you don't like the PSP or its non-gaming features. Whee. While we're on the subject of old news, I hear Kennedy was shot and that we might go to the moon someday, too.
Shane @ Mar 15th 2007 7:55PM
The fact that the shipped numbers were low and the NDP charts had the sales at, I believe, 350 000 tells me that the retailers had a lot of units sitting on the shelves from the summer months.
What I make of this is that the price is to high for an impulse buy, though $150 is still not that cheap. It just screams price drop.
At this point I don't know if a price drop would help all that much anyway. The DS has become the iPod of gaming.
txa1265 @ Mar 15th 2007 9:25PM
Heck, I paid $250 on day of release (in line at Best Buy opening), don't think much of the non-gaming stuff, and LOVE the system and have found it to be a great value for me!
I still stick with my thought that it was a random comment in isolation taken out of context and blown up ...
SirPasta117 @ Mar 15th 2007 10:47PM
That single article has made me delay my purchasing a PSP
Tom @ Mar 16th 2007 2:19AM
Well, for me the price was worth it! I just LOOOVE using my PSP to play hundreds of SNES and Genesis ROMs, which are all perfectly legitimate due to all those massive stacks of purchased cartridges in my basement! So there!