PSP Go strategy gives up sales to DS, iPod

SCEA Publisher Relations Senior VP Rob Dyer in a recent interview admitted that Sony has struggled since the launch of the PSP Go. He noted that the company's approach to making download-only games has served to "confuse" gamers and that Sony will have to communicate more with buyers to get significant adoption. A large amount of this information is expected this year.

Dyer also acknowledged to IndustryGamers that the PSP Go's $250 price tag has been a problem. While not specifically explaining why, he implied the combination of a lower $200 price on the regular PSP and its simpler-to-understand UMD discs were likely factors.

"Yeah, I think the higher price point didn't help matters any," he said.

The company has faced threats from both its long time opponent Nintendo as well as the iPod touch, the very platform the PSP Go was designed to combat. Both of the challengers' devices cost significantly less, while the iPod touch in particular has undermined much of Sony's established business model. Most App Store games cost just a fraction of their PSP equivalents; threats from physical retailers protecting their businesses have also forced it to charge the same for an online version of a major game as in store and to stifle PSP mini game features to prevent these from overtaking regular PSP games in popularity.

by MacNN Staff