Sony isn’t likely to cut the price of its PlayStation 2 console in an attempt to trip Microsoft’s Xbox 360 launch, but there’s a “slight chance” that the PSP will drop from $249 to something a bit more reasonable as a result of slowing PSP sales, according to a research report by Shawn Milne and Todd Greenwald, analysts at Friedman, Billings, Ramsey & Co., Inc.
They write: “We do not expect a PS2 price cut due to solid sales at $149 and, perhaps, a price umbrella (due to the high price of Xbox 360 hardware and bundles). However, we believe there is a slight chance for a PSP price cut from $249, as sales have slowed somewhat and the Nintendo DS received a shot in the arm with the release of Nintendogs.”
Source - Joystiq
Good point about Nintendogs.
I saw an ad for it online and I went out and bought me and my girlfreind a DS and two of the three Nintendogs versions. We didn't really want a DS prior to that, and all of a sudden we went out and spent $200.
The PSP never did that for me, I just bought it kind of on a whim since I was getting most of it paid by birthday cash anyway.
Granted, I love the easy homebrew aspect of the PSP (I don't have all the availible stuff for DS homebrew) so I love my PSP to death, but even with all it's features, it does not necessarily have anything over the DS in terms of how the market is working out.
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