Sony to cut back on production of PSP???

Are sales not as good as they thought?

SONY SLICES PSP PRODUCTION

Sony cuts back on handhelds rolling off the production line, while Nintendo kicks DS into high gear...............


http://www.computerandvideogames.com...(que)id=120834

A $250 handheld will never sell as many as a $150 handheld. No matter how good it is, or how good the games are - most people, especially parents buying stuff for their kids, will not be opting for the most expensive item.

So I don't think this news is surprising. Sony was overly optimistic in their initial forecasts, now they're coming down to earth. ;) Either they decrease production to meet demand and maintain high prices, or increase production and lower prices significantly to increase demand. Apparently they intend to keep the high prices. Probably because they can't decrease the PSP price much yet.

I recall reading an interview a while back with a Sony exec, and they something like "we dont expect to make a big profit on PSP right away, but ten years from now we expect to look back and say yes we did." So I wouldn't let ebbs and flows in how PSP business is conducted worry you. Sony is a big rich company, and they play for long term goals. They don't expect to beat Nintendo this year. But a few years from now... who can really say? Back when PS1 was new, who would have expected that Sony would become the #1 console company, and Sega would stop making consoles completely? You just never know what the future holds.

"According to business reports coming out of Japan (Sony) will be manufacturing far fewer units than originally intended."

The article states that they are cutting back from 18 million PSPs to 12 million. I think this is actually a wise choice untill the general public catches on more, or saves up to buy them. There are units on the shelves now just sitting there...but not nearly as many as the DS :p I just hope they make sure to send enough for the European launch, I really feel for anyone who still is waiting to get a PSP.

I certainly think the price has a hell of a lot to do with it.

Most parents just couldn't afford to shell out for a PSP for little Johnny where as the DS is that little more affordable.

I also agree with leggy on the price. Graphics dont mean much either even though PSP's is really amazing but people loved the N64 and dont mind the price well now they get to play it all over again and handheld for a cheaper price then the PSP. Graphics arent everything which system would you have more fun with and i'm not talking about hardware cause games is where its at for me.

Eric

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Originally Posted by Eric

I also agree with leggy on the price. Graphics dont mean much........... cause games is where its at for me.

Eric

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I have just bought space invaders pocket - hardly cutting edge but I have never had so much fun for ages (apart from with my woman :D )

LOL games like that to me are amazing brings back memories of the good "ol" days and why Dreamcast gives me memories of Arcade ports that i once played in the Arcade that i can now play at home.