Pachter: PSP Won't Catch Up To DS, But It Doesn't Need To

[wraggster]

Via GameLife

After my conversation with PSP product manager John Koller about Sony's new focus on the younger consumer, I spoke with Wedbush Morgan Securities games industry analyst Michael Pachter about the situation. Here are his thoughts.

PSP is getting outsold by Nintendo DS about two-to-one worldwide. Can Sony close this gap, or is it too late?

I don't think Sony will close the gap, and don't think it is important that they do so. Nintendo has over 20 million loyal GBA owners, and we should expect them to dominate the category that they invented. Sony is late to the handheld game, has tried to approach the market from an older demographic, and is just now trying to beef up more kid-friendly content to appeal to 13-17 year olds. I don't think that the gap matters at all, so long as Sony makes money. I also believe that price elasticity of demand dictates that the lower priced product will sell more units. That's why there are more Fords than Maseratis.

Software sales are rather low on PSP. In light of this, how can Sony convince software publishers to keep bringing games to PSP?

Software is going to grow as the installed base grows. There are really not many more third party games for the DS than for the PSP. Most third parties are supporting both, and as long as the PSP appears to be growing its installed base, I expect to see a growing software library.

With Sony's John Kollar saying today that the company is shifting its focus to the 13-17 year old market (away from the 18-34 year old demographic), does this represent a good move for the platform?

The "focus" on younger gamers is an acknowledgement that the market is still there, and recognizes Nintendo's success with this demographic. Handhelds are still considered by most to be a "starter" set for consoles, and although the PSP is effectively a handheld console, it has as yet to overcome consumer perception. Games can go a long way toward shifting that perception.

Do you think Sony will introduce a new PSP model in 2007, one that takes more advantage of the fact that most PSP owners are downloading music and movies and need extra storage space (onboard flash, a hard drive)?

I think a new model is a certainty, but it's hard to say that it happens in 2007. I predicted this in January 2005 (it's all over the Internet), and still believe it will happen, but can't predict the actual date. Flash is more likely, given the success of the iPod Nano.

[Buddy4point0]

yea. even if its not doing as good as the ds its still doing good.

[Adrenalin]

no, its not. lol.

[TheEmulatorGuy]

no, its not. lol.

If you got out of your fanboy haze, you'd realize that making ANY amount of PROFIT is doing well.

But I suppose the shareholders of Sony cry in and out of their mansions and Ferraris just because Nintendo is making more money.

[Ichijoe]

If you got out of your fanboy haze, you'd realize that making ANY amount of PROFIT is doing well.

But I suppose the shareholders of Sony cry in and out of their mansions and Ferraris just because Nintendo is making more money.

Yes cause the SCE Division has already lost over $400,000,000,000.000(USD) ~that's over FOUR-HUNDRED BILLION UNITED STATES DOLLARS!!~ on both the PSP and the PS3.
Partly due to S0NY's Marketing of the Device(s) in question, WTF was the PS3 supposed to do again?! ... Oh well [according to One Poster at HMV] "It also plays Games" ~if you're willing to swallow the Lies.~

Nintendo may not be "perfect", but (to compare Orange's to Orange's here), Nintendo have released how many First-Party Games for there DS?!
As opposed to S0NY's offering for the PSP?!
Funny (as far as Europe goes), I can only come up with Daxter and LocoRoco.
Now I'm aware that there is MLB 0x THE SHOW as well but, good luck finding that outside the US/CAN.
So if we cut out the crappy non-existant Third-Party Devs' like the Original Article would suggest, Nintendo would still ~likley~ have more Games for it GBA B/C (or not), then the PSP, more Games I'd be willing to buy and play.

Ex. I'd be willing to buy Phoenix Wright, I'm not however going to buy the Ripoff that's kown as RideRacer 2 (I lost about 85% of my respect of the PSP after that stink-bomb, does S0NY really think we're that dumb?!), and WTF is this Passport to Sh*t xxxx ?!
There was a reasion why I wanted the PSP when it came out in September 2005, I had expectations of a PS2-esq ~powerhouse~ Handheld, instead I got a POS collecting Dust.

The sad part is S0NY never learnd (or perhaps it was to late to react), in-lue of the PS3's billy-ray player.
Be that as it may to call the PS a cheep (i.e. low-end), Blu-Cheese player can only be valid for somebody who's looking to get a cheap BR Player.
Personally I'd chill out for the next Year or Two and see which (if any), Format would win first.

*Win = ca. Sub €100.00(EUR), Players, Sub €100.00(EUR) Burners and has the most affordable Media Print (i.e. Movies), or Recordable's
Personally I buy a Games Machine to (now you'll never believe this...) ~to play Games!!~

S0NY's Motto shouldn't be "This is Living!", but rather "IT'S THE GAMES STUPID!"

[Joe88]

Yes cause the SCE Division has already lost over $400,000,000,000.000(USD) ~that's over FOUR-HUNDRED BILLION UNITED STATES DOLLARS!!

proff ?

I think they would be out of business a while ago then
lmao

[The King]

ichijoe i agree with wat ur saying
i also got a psp thinking that it would have a bright future ahead but up to this point sony is getting desperate realy desperate

i say this because after they said that there will not be a price drop on the psp look at wat hits us
psp games being sold at 5-10 dollars wich seems like a desperate move to me try to find a DS game at tha price very unlikely also to top it of the psp got a 30$ price drop another desperate move if u ask me

up do know the best chance sony has in recovering money is on the new psp model hopefully this one with not cramp ur fingures as thins one does

i will also be expecting like an 80 gigs of internal memory so it would be wirth the money to buy and an extra analog for the few shotters that they have out

[Cap'n 1time]

I think its good to acknowledge this because fanboys on all sides sort of win. Everyone knows in the handheld business Nintendo is and always will be supreme ruler, not even Sony can really put a dent in their profits mainly becuase Nintendo over the years has built strong relationships with 3rd parties in the handheld department + the fact that nintendo's first party games are ALWAYS above average and get a lot of attention. Sony is new in the business, and while they are considered respectable by some, they have no experience in this corner of the market.

Sony needs to stop whining about nintendo and concentrate on getting better 3rd party support so they can actually turn a profit. They will never catch nintendo, but that doesn't mean the psp has to suck.

[Basil Zero]

Who cares, both companies are making $$$$