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Sony in big trouble with PS Vita, Portable market in perm decline, rotting - Forbes

I'm subscribing to the theory that portable gaming devices will die. everyone has a cell phone, cell phones can play games, therefore a second portable device is unnecessary.

but of course it will be a gradual transition. cell phones need to get more powerful and virtualization software like Java needs to be improved so titles don't have to be rewritten for the hundreds of different models of cell phones. but in ~5 years Nintendo et al may find themselves writing software for cell phones.
 
I posted that as a light hearted poke at the discussion.

I think your high horse has given you a wedgie.

For serious discussion:
Nintendo and Sony have probably lost, and will have a tough time regaining (if possible), people who only play games for a few minutes at a time. Time wasters. The same people who use Pogo.

The 3DS and PSP probably won't see the same success as the pervious iterations because of this. They will continue to maintain those interested in the more in-depth portable titles (Pokemon) and sell units to those people.

I don't think portable systems are going to disappear, but they won't have the same success as the DS had.

That's why some people mentioned PS Suite and PSPPhone above. Sony want to court these people via those platforms.

Vita is targeted at the core gamers and their other entertainment needs.

Jim Ryan has hinted at some contents for the casuals. If so, I think those contents may be more interesting on PS Suite with some Vita extension.
 
I'm subscribing to the theory that portable gaming devices will die. everyone has a cell phone, cell phones can play games, therefore a second portable device is unnecessary.

but of course it will be a gradual transition. cell phones need to get more powerful and virtualization software like Java needs to be improved so titles don't have to be rewritten for the hundreds of different models of cell phones. but in ~5 years Nintendo et al may find themselves writing software for cell phones.

I don't like this world
 
I'm subscribing to the theory that portable gaming devices will die. everyone has a cell phone, cell phones can play games, therefore a second portable device is unnecessary.

but of course it will be a gradual transition. cell phones need to get more powerful and virtualization software like Java needs to be improved so titles don't have to be rewritten for the hundreds of different models of cell phones. but in ~5 years Nintendo et al may find themselves writing software for cell phones.

iPad has already proven the cellphone dominate theory false.
 
I'm subscribing to the theory that portable gaming devices will die. everyone has a cell phone, cell phones can play games, therefore a second portable device is unnecessary.

but of course it will be a gradual transition. cell phones need to get more powerful and virtualization software like Java needs to be improved so titles don't have to be rewritten for the hundreds of different models of cell phones. but in ~5 years Nintendo et al may find themselves writing software for cell phones.

How long do you feel before consoles suffer the same fate? In your opinion.
 
For serious discussion:
Nintendo and Sony have probably lost, and will have a tough time regaining (if possible), people who only play games for a few minutes at a time. Time wasters. The same people who use Pogo.

The 3DS and PSP probably won't see the same success as the pervious iterations because of this. They will continue to maintain those interested in the more in-depth portable titles (Pokemon) and sell units to those people.

I don't think portable systems are going to disappear, but they won't have the same success as the DS had.

Yes and no. What phones have capitalized on is is also a segment that probably never owned a portable in the first place. Before they were likely doing NYT crosswords and sudoku, reading books or listening to music in their down time. I think the people that grew up on handhelds and have seriously owned them are likely to still buy them. I don't feel DS is quite repeatable but I think 3DS could easily outsell GBA which considering it was a monopoly market is hardy bad or unhealthy.
 
I'm subscribing to the theory that portable gaming devices will die. everyone has a cell phone, cell phones can play games, therefore a second portable device is unnecessary.

but of course it will be a gradual transition. cell phones need to get more powerful and virtualization software like Java needs to be improved so titles don't have to be rewritten for the hundreds of different models of cell phones. but in ~5 years Nintendo et al may find themselves writing software for cell phones.
I disagree with you, and I'll counter your argument with an analogy.

Let's take the example of cellphones and cameras.

In the past cellphone cameras were crap (no discussion there), so if people wanted a portable camera that took "fine" photos, you bought a slim camera, and if people wanted to take great photos, they bought big ass cameras.

Now phone cameras are very good, so cellphones took the "casual" photo market or the "fine" photo market, but the market for big cameras is intact, because cellphones will never be able to replicate those cameras, it's impossible.

With gaming it's the same, Nintendo benefited from the underserved casual gaming market, so it sold lots and lots of systems to people that are not dedicated gamers, they wanted good quality titles, "fine" games to pass the time. Now cellphones are taking that market, because there is no way Nintendo or Sony can effectively retain those markets and they are not interested in competing against $1 games.

But there is no possible way that the cellphone market can bite into the dedicated gamer market, because if they tried, the phones themselves loose the appeal of being practical phones (no battery, extremely expensive, bad controls, etc), so even though the phone market effectively took a big share of the handheld market, there is no way for it to take more of it.

The portable market is probably reduced, although I do believe that the "core" market expanded due to game companies efforts during this generation, so it now may be a 100 million person market instead of 200 millions, it is a drastic difference, but it still is much bigger than the 70 million GBA market.
 
That's why some people mentioned PS Suite and PSPPhone above. Sony want to court these people via those platforms.

Vita is targeted at the core gamers and their other entertainment needs.

Jim Ryan has hinted at some contents for the casuals. If so, I think those contents may be more interesting on PS Suite with some Vita extension.

Is there any reason why Sony didn't put the Android store directly on the Vita? Is this something they could patch in the future? As a revenue stream having a .99 app store obviously isn't going to make everyone jump for joy, but as a reason to pick up the hardware it would be a huge plus. I just think having so many marketplaces on a portable device (PSOne classics, PSP Mini, PS Suite, PS Vita DL, and PSP DL) is a fucking mess that's already more fragmented than what's available on 360/PS3 (XBLA, GoD, XBL Indy, XBL Classics).

When you boot up an iOS device or Steam, it's nice to have all of your games right there in front of you in a neat little list.

"Can I play Mario on it?"

There, that second portable device instantly became necessary,

Plinko said:
It has the best launch lineup in ages. Games aren't the problem.

And this is why I believe that an "all-or-nothing" prediction for the handheld vs. mobile platforms is silly. If there is a game that everyone wants to play, and it's only on one platform, they will buy that platform. Even if the 3DS had Wii-level 3rd party support, it could still sell bucketloads as long as Nintendo provides unique experiences. The problem Sony has is that literally every game announced for Vita is either a console port or a new entry in a franchise that plays/looks better on PC/PS3/360. In the west, where console portability is not a selling point in and of itself, Sony has to work harder at differentiating the PSP lineup. If you run off the Vita launch list to your average PS360 owner, the response is going to be "I played those games last year...and?"
 
It has the best launch lineup in ages. Games aren't the problem.
Yes they are. And it's awesome that some of you come with a straight face comparing launch lineups when the truth is when the 3DS launched there was no VITA, and when VITA launched the 3DS was a monster.

Yes, 3DS launch lineup was crap, but that doesn't matter because when VITA launched, 3DS lineup was a thousand times better.
 
Is there any reason why Sony didn't put the Android store directly on the Vita? Is this something they could patch in the future? As a revenue stream having a .99 app store obviously isn't going to make everyone jump for joy, but as a reason to pick up the hardware it would be a huge plus. I just think having so many marketplaces on a portable device (PSOne classics, PSP Mini, PS Suite, PS Vita DL, and PSP DL) is a fucking mess that's already more fragmented than what's available on 360/PS3 (XBLA, GoD, XBL Indy, XBL Classics).

When you boot up an iOS device or Steam, it's nice to have all of your games right there in front of you in a neat little list.

Because then Android would compete with Sony on it's own platform that is designed to be subsidized by software sales.
 
I disagree with you, and I'll counter your argument with an analogy.

Let's take the example of cellphones and cameras.

In the past cellphone cameras were crap (no discussion there), so if people wanted a portable camera that took "fine" photos, you bought a slim camera, and if people wanted to take great photos, they bought big ass cameras.

Now phone cameras are very good, so cellphones took the "casual" photo market or the "fine" photo market, but the market for big cameras is intact, because cellphones will never be able to replicate those cameras, it's impossible.

With gaming it's the same, Nintendo benefited from the underserved casual gaming market, so it sold lots and lots of systems to people that are not dedicated gamers, they wanted good quality titles, "fine" games to pass the time. Now cellphones are taking that market, because there is no way Nintendo or Sony can effectively retain those markets and they are not interested in competing against $1 games.

But there is no possible way that the cellphone market can bite into the dedicated gamer market, because if they tried, the phones themselves loose the appeal of being practical phones (no battery, extremely expensive, bad controls, etc), so even though the phone market effectively took a big share of the handheld market, there is no way for it to take more of it.

The portable market is probably reduced, although I do believe that the "core" market expanded due to game companies efforts during this generation, so it now may be a 100 million person market instead of 200 millions, it is a drastic difference, but it still is much bigger than the 70 million GBA market.

While your post makes a lot of sense, I think it applies more to why phones will never replace home consoles but not to whether phones will replace portable consoles.

Portable consoles were always designed to give a more streamlined, convenient, cheap and quality gaming experience on the go, as opposed to the more complete experiences you get in home consoles. Cellphones directly challenge portable systems because they offer increasingly more streamlined, convenient, cheap and quality games themselves, therefore making portables obsolete.
 
I agree, that would have been optimal. Or, they could give up on convergence devices and blaze their own trail, as I suggested earlier. That might mean a renewed focus on consoles, as the console space has become less intense as the world has moved portable. Or maybe Sony can come up with something totally different -- perhaps hardware built in to their TVs that made their TVs a game machine/TV simultaneously, in one form factor.

I don't really know, I'm just throwing stuff out there off the top of my head. My real point is this: the race for convergence is so intensely competitive that it is not something one can do half heartedly. You cannot make a game machine, then throw extra stuff in there and call that your convergence device -- even if you do the "extra stuff" very well, as it seems Vita has done. It's not going to out-compete a very intelligent company like Google or Apple who is putting 100% of their effort in to this "convergence device" process. Sony has to also be in 100%, or they should get out and find oceans that are at least slightly less red.
My problem with idea of making of videogame systems multimedia devices is that the specs on the smartphone business side evolves almost every six months. Gaming hardwares can't get revisions as often as smartphones which makes them outdated as fast as they come out. Keeping the hardware specs steady for more than a year makes gaming systems bad multimedia platforms.
 
While your post makes a lot of sense, I think it applies more to why phones will never replace home consoles but not to whether phones will replace portable consoles.

Portable consoles were always designed to give a more streamlined, convenient, cheap and quality gaming experience on the go, as opposed to the more complete experiences you get in home consoles. Cellphones directly challenge portable systems because they offer increasingly more streamlined, convenient, cheap and quality games themselves, therefore making portables obsolete.
PSP and GBA proved that there is a huge market to complete gaming experiences on handheld form, and no, current cellphones can never replace those. Maybe if future cellphones changed significantly, then sure, they can destroy portable gaming, but you can't even emulate Mario correctly on a cellphone and cellphones will not morph just to try and take all of the portable gaming market.

I don't see why dedicated gaming portables "have" to die; why some people think it's impossible for both, cellphone gaming and dedicated handheld gaming to coexist?
 
Euro dropped under 100 Yen today, Sony is going to have to make some tough decisions in Europe and the chances of a price reduction there anytime soon isn't likely.

I would expect them to allocate more stock in the UK and NA and reduce what they expect to sell in mainland Europe.
 
While that's true, it doesn't change the design intention. No one at Sony is fooling themselves into thinking this is going to be the next big (ho-ho) generalist pocket device.

They've needed Playstations to help carry extra functionality and agendas in the past, but their 'smart' device agenda is being served by Playstation in a different way now, and that has left Vita practically untouched by those concerns, and has given SCE the license to just make a games machine. There is no other agenda evident, at least in any particularly strong way, or in any way that compromises the games side.

I would say Vita is the most focused Playstation yet, at least since the first.
I agree.
 
My problem with idea of making of videogame systems multimedia devices is that the specs on the smartphone business side evolves almost every six months. Gaming hardwares can't get revisions as often as smartphones which makes them outdated as fast as they come out. Keeping the hardware specs steady for more than a year makes gaming systems bad multimedia platforms.

I don't disagree -- in fact, I believe this is in large part why the successful convergence devices are coming from other industries first and foremost. Rather than being game players first and other things second, they are phones first, or tablets first, and gaming second.

So if gaming systems are bad multimedia platforms (as you say here), then Sony should abandon their persistent attempts to push the Playstation brand in that direction, and reuse that capital for gaming purposes. Find a new venue that their products can more successfully compete in.
 
lol

anyway, in case you guys didn't notice it was Sony's plan all along to use a slide out form factor that could later be converted into a phone like device but reports said it was overheating. with a die shrink that will be possible

the main roadblock is actually on the software end as they don't appear to be competent enough to make their own general operating system or apps so unless they acquire the expertise they have to look at bringing vita games to other operating systems like android without making the hardware into an abomination (android itself is actually more of a hardware drain than it should be so it's not so easy)+. vita was an opportunity for them to show that they can offer a value add in social/apps/browser and it looks like they failed pretty badly. the way they designed the vita they sacrificed everything for games which misunderstands that the greater competitive advantage is in bringing quality games to something more general purpose that would make people want it over the other devices out there. that will do more for them in the long run than big system sellers especially when they can't seem to make any in first party

it's OK that the apps suck and they don't have an app platform with the current form factor but slide out makes people want to use as a general purpose device. the idea that people only want finger flicking or touch games is questionable to me when hardcore games like dead space, call of duty, grand theft auto are selling well on idevices even when they are shitty badly controlling versions.
 
Because then Android would compete with Sony on it's own platform that is designed to be subsidized by software sales.

If I'm Sony, I'd rather have people logging into PSN to play Android games than simply flipping through their smartphone. It's the same reason why MS allows Netflix, Hulu, and Last FM even though they have their own movie/music marketplace: you just have to get people accustomed to having your console online all the time, and the revenue will follow. It's not just LIVE Gold subs; people who use their 360s as media devices (as the thread on GAF clearly pointed out) are bombarded with ads for everything else on the marketplace.
 
I just think having so many marketplaces on a portable device (PSOne classics, PSP Mini, PS Suite, PS Vita DL, and PSP DL) is a fucking mess that's already more fragmented than what's available on 360/PS3 (XBLA, GoD, XBL Indy, XBL Classics).

PlayStation Store is a single marketplace already. Most of the categories you mentioned (apart from maybe PS Suite) are simply that, categories within the PlayStation Store.

PlayStation Suite is somewhat of a wild card, as we don't know what form PS Suite games will take on the PS Vita. Will they be sold as a separate category of "PS Suite" games, or ordinary PS Vita games?

The problem that I have with Sony's downloadable game strategy is that devices that are "PlayStation Certified" (such as Xperia Play or the Sony tablets) but not actually PlayStation branded are getting separate online marketplaces from the PlayStation Store. The phone/tablet marketplaces might be branded as "PlayStation Store", but if it's not a truly unified store (like Amazon's Kindle e-book store), then it will be confusing to consumers. Developers might not be very fond of it either, as it would take away what could be a strong selling point.

A unified PlayStation Store with shared content between all PlayStation Certified devices (and not just PlayStation branded devices) could be a compelling platform to develop for. Consumers would have a real incentive to buy games through PS Store if they could freely transfer them between their Vita and possible smartphone or tablet devices--pick whichever device is convenient or best suited to the type of game you want to play.

This shareable content strategy has worked well with Amazon's Kindle line. Users have incentive to buy Kindle books because they work on their PC, their smartphone, their tablet, and also the Kindle hardware device that they might not own yet but intend to buy soon because of the knowledge that their book collection will transfer over seamlessly. If PS Suite games can be shared in the same way, then there is a good chance that gamers that are weaned on PS Suite games on Android who later shop for a dedicated portable game system (because they want real joypad/button controls) will choose PS Vita first and foremost for the same reason.
 
My problem with idea of making of videogame systems multimedia devices is that the specs on the smartphone business side evolves almost every six months. Gaming hardwares can't get revisions as often as smartphones which makes them outdated as fast as they come out. Keeping the hardware specs steady for more than a year makes gaming systems bad multimedia platforms.

And how often does media change it's requirements? How long did it take to go from 480p to 1080p? How long before XHD? 320Mbps MP3 has been standard for how long? This is a ridiculous claim because the time scales are much, much slower for media.
 
I don't disagree -- in fact, I believe this is in large part why the successful convergence devices are coming from other industries first and foremost. Rather than being game players first and other things second, they are phones first, or tablets first, and gaming second.

So if gaming systems are bad multimedia platforms (as you say here), then Sony should abandon their persistent attempts to push the Playstation brand in that direction, and reuse that capital for gaming purposes. Find a new venue that their products can more successfully compete in.
Well, Sony seems very motivated to force their "premium" corporate philosophy into the Playstation brand which as played a great part in it's recent demise. If they're not charging the premium factor through multimedia, they'll do so through other means (the proprietary memcards).

Edit: I'm wrong about Sony charging premium through the memcards. They'll do so through any other means whenever they'll have the chance.
 
Is there any reason why Sony didn't put the Android store directly on the Vita? Is this something they could patch in the future? As a revenue stream having a .99 app store obviously isn't going to make everyone jump for joy, but as a reason to pick up the hardware it would be a huge plus. I just think having so many marketplaces on a portable device (PSOne classics, PSP Mini, PS Suite, PS Vita DL, and PSP DL) is a fucking mess that's already more fragmented than what's available on 360/PS3 (XBLA, GoD, XBL Indy, XBL Classics).

When you boot up an iOS device or Steam, it's nice to have all of your games right there in front of you in a neat little list.

It's meaningless to have Android store on Vita if Vita doesn't run Android. PS Suite has its own store. The mix of Playstation titles are indeed confusing primarily because of different DRM and run-time limitations. They can still be hosted on the same store, under different categories.
 
And how often does media change it's requirements? How long did it take to go from 480p to 1080p? How long before XHD? 320Mbps MP3 has been standard for how long? This is a ridiculous claim because the time scales are much, much slower for media.
You're avoiding my point. How often we've seen new specifications & technologies being introduced for mobile related tech the past 3 years? I'm talking about OS and hardware related changes.
 
More than anything, Vita needs to be released. It's currently losing ground to the 3DS and will be contending directly with the Ipad 3 in February. Sony picked the worst rollout date possible.
 
I think Sony can pull things together...but I don't think dedicated videogame players will be competitive during the next hardware cycle. They must become phones. The best thing Sony can do next cycle is create an OS you can program to and have a phone that can be upgraded every year, but will have no problems with BC, and older units can still play new games but at lower settings.
 
My problem with idea of making of videogame systems multimedia devices is that the specs on the smartphone business side evolves almost every six months. Gaming hardwares can't get revisions as often as smartphones which makes them outdated as fast as they come out. Keeping the hardware specs steady for more than a year makes gaming systems bad multimedia platforms.

specs are only one thing. the smartphone devices are suffering the same problem PC games have that it makes business sense to also make the game for the lesser devices so you get games which are not taking full advantage of the ipad 2 or iphone 4s beause they also need to run on a iphone 4 or ipad 1. and it's not so much of a disadvantage to have die shrink and greater clocks as that is what allows a company like Sony to make a convergence device without sacrificing the games. home consoles have shown that developers like a stable platform and it's possible to make graphics competitive. it also allows for the device to occupy a cheaper price point as it ages. there are barriers in the way from them making a successful convergence device but I don't think competitive specs is one of the important issues
 
Anyone who is shocked by this or disagrees with it needs to get out of their basement and face reality. Most people don't give a shit about dedicated portable game systems anymore, especially ones that command the price of the Vita. Yes, the market is in decline, and will continue to be. The appeal is non-existant beyond the hardcore.
 
More than anything, Vita needs to be released. It's currently losing ground to the 3DS and will be contending directly with the Ipad 3 in February. Sony picked the worst rollout date possible.

I think not much difference to launch early beyond short term boost. They should think through their strategy and lay down all the ground work in the mean time. The western world should be tougher than Japan.

The dedicated entertainment device market is going through a transformation right now. It may be expanding instead of contracting. Sony should try to ride the wave instead of running away or going under. Vita may be a good bridging device since its hardware is similar to cellphones and tablets, but with more control options.
 
More than anything, Vita needs to be released. It's currently losing ground to the 3DS and will be contending directly with the Ipad 3 in February. Sony picked the worst rollout date possible.

Yeah, not exactly the ideal launch window for Vita. It'll be the hot new gadget for like a month, then everyone will be fawning over the iPad 3 with retina display in March.
 
Anyone who is shocked by this or disagrees with it needs to get out of their basement and face reality. Most people don't give a shit about dedicated portable game systems anymore, especially ones that command the price of the Vita. Yes, the market is in decline, and will continue to be. The appeal is non-existant beyond the hardcore.

Again, give us the empirical data to support this claim. I assume you can't, because it currently doesn't exist.
 
The flipside of the phone gaming market is it might get more people interested in games... I see quite a few people playing stuff like angry bird who have never been into games...fair enough, that will be as far as the majority go...but it might spark interest in others.

I only played Angry Bird for the first time a couple of weeks ago...its decent fun. It reminded me of worms except much more bare bones. Not my cup of tea though
 
Yeah, not exactly the ideal launch window for Vita. It'll be the hot new gadget for like a month, then everyone will be fawning over the iPad 3 with retina display in March.

The expected behavior should be: People will compare iPad 3 with Vita and conclude that the latter is doomed. So Vita should continue to be in the news after iPad 3 launch.

The trick is to organize something unexpected/different to set Vita apart at that time. Nope, AR games is not it. ^_^
 
The flipside of the phone gaming market is it might get more people interested in games... I see quite a few people playing stuff like angry bird who have never been into games...fair enough, that will be as far as the majority go...but it might spark interest in others.

Yap, this is already happening at home. Wife used to think gaming is a waste of time, but the kid and her are addicted to a few iOS mini-games. Now they understand Resistance 3 and Demon's Souls better for my sake. ;-)
 
I am pretty sure that the lack of a new Monster Hunter title on the PS Vita and the availability of one on the 3DS is the major reason behind the drop-off in PS Vita sales.

The PSP is basically a Monster Hunter playing machine in Japan. Nine times out of ten when I see someone playing the PSP on the train, it is that game. Now I am starting to see people with that ugly attachment on 3DSs playing away at Monster Hunter. Sony should definitely dish out the money and get Capcom to make a PS Vita version.
 
Just give me a Demon's/Dark Souls and a Monster Hunter title for the Vita and you guys can call the system a failure, the best thing ever or whatever you want to label it. I'll live in ignorance and love every second of it.
 
the main roadblock is actually on the software end as they don't appear to be competent enough to make their own general operating system or apps so unless they acquire the expertise


I have to agree that this is a huge roadblock.

Its the OS/Software that separates Sony and Apple.

Without a proper OS Apple is just Sony at its current state, with a good OS and integration Sony could easily be the next Apple.

I don't know if it was on this forum or another but someone made a great hopeful suggestion that Sony should have made a bid for WebOS.

Sony Laptops/Desktops/Playstation Consoles/Walkman/Blue Ray Players/TV's/etc running a modified WebOS would have been sweet.
 
Also, there is some decadence in the iOS gaming.

More decadence with traditional portable games if you ask me.

You pay almost as much as you do for a console game and all the games people hold up as reasons why portable gaming is so good would be better off as full console games or downloadable games.
 
Seems like PS Vita's biggest problem is largely the same as what Nintendo's problem was. $249.99 is too high for the average consumer and the library of games is lacking.

I'm sorry, but I don't see anything special about Vita's launch besides Uncharted. The problem that Vita mostly faces (although, it might be a good thing for some) is that a lot of it's games are just ports or portable versions of console games (by all means, correct me if I'm wrong but that's all I see). That's fine for some and there's an audience for it. It worked for the PSP throughout it's lifetime and it did incredibly well for Sony's first handheld.

I think the PS Vita is largely going to have the same fate as the PSP and that's not a bad thing for most people. Personally speaking, I hope it isn't just a PSP and I'm hoping for more original content that aligns with my gaming tastes.
 
Kinda-sorta unrelated, but given that the article starts off with a comparison between the price of the PSV and that of the Kindle Fire, what is your feeling about 1) the pricing of the system, 2) the price of dedicated (or near-dedicated) handheld gaming systems? For instance, can you imagine, in today's context, a situation where the pricing of the PSV won't be much of a hurdle?

In other words, can dedicated gaming handhelds still propose $150-250 worth of utility today, or will people in general really start to compare them to similarly-priced convergent devices like the Kindle Fire?

The value must come entirely from the games library, but yes, absolutely -- given enough high quality games I think prices in excess of 200 dollars are sustainable.

The problem is that getting to that point (where you have a massive library of games) requires high sales to begin with (so that developers will develop games), and getting there typically requires low prices.

Interestingly, I actually believe a system is worth more money in the fifth year of its existence than it is in its first -- but it's extremely difficult to convince consumers of that if you've already sold the system for 130.
 
I have to believe that this device would be just fine if Sony keeps the software coming. My biggest beef with the PSP was the poor software support. But I love the handheld. I probably used it as much for the Internet radio and web browser as I did for gaming.

I think Sony needs to embrace apps for the device, too. Having an app store where developers can port and sell their iOS and Android wares would be a free revenue stream for Sony. Just release an SDK and take a cut for hosting and delivery of apps. If the concern is that Angry Birds is cutting into the action then bring Angry Birds to your platform and get a slice of that pie.
 
The value must come entirely from the games library, but yes, absolutely -- given enough high quality games I think prices in excess of 200 dollars are sustainable.

The problem is that getting to that point (where you have a massive library of games) requires high sales to begin with (so that developers will develop games), and getting there typically requires low prices.

Interestingly, I actually believe a system is worth more money in the fifth year of its existence than it is in its first -- but it's extremely difficult to convince consumers of that if you've already sold the system for 130.

You could always do what Nintendo did with the DS - release new versions at a higher price point.
 
Interestingly, I actually believe a system is worth more money in the fifth year of its existence than it is in its first -- but it's extremely difficult to convince consumers of that if you've already sold the system for 130.

You have a point here, because the catalogue is much bigger (and, in that new generation, probably the firmware updates the machine will be able to do much more things in year 4 than in year 1), so the device is better.

But also it has less time to be enjoyed until it get deprecated for a newer device. First users pay for the promise of games and the potential use of the console during a lot of years, more than for what the console is worthy in the day 1. A year 5 user has a better product, cheaper, but the potential enjoyement time of the device is less (unless he don't care about playing in a deprecated console where there are no new games, and skip the new ones during the next years).
 
Interestingly, I actually believe a system is worth more money in the fifth year of its existence than it is in its first -- but it's extremely difficult to convince consumers of that if you've already sold the system for 130.

Yep, and this is exactly why I believe both Sony and Nintendo made a huge tactical error in their pricing. Whether or not smartphones are impinging on the handheld market, it's just a fact that effectively the cheapest general-purpose phone-OS devices are coming in at $200, and the vast majority of the ones people actually buy are a good bit more. A $130 device is "cheap as free" -- people will buy it for their kids, or pick it up to play a single game, or otherwise lower their standards for it at basically the slightest excuse (and thereby open themselves up as software buyers.) Targeting a price like this would've been far smarter because it would've effectively filled a niche that phone companies were unlikely to go.

You could always do what Nintendo did with the DS - release new versions at a higher price point.

This was a pretty genius move, for sure.
 
That's because every gen starts from zero base.

People typically only jump onboard early if a product offers a new experience, 'specially if early adopters gain an advantage. The old Internet gold rush was somewhat like this when people tried to grab good domain names or email IDs.

A seamless platform strategy like iOS would also provide better benefits because of backward compatibility (Proven games at a cheaper rate).

Under Kutaragi, the launch products used higher quality components. Later iterations may use cheaper parts as they cut cost more aggressively. This is somewhat counterbalanced by the risk of using new technologies though. Despite the initial stuck pixels complains, I was really happy with the launch PSP. My replacement PSP feels cheaper (Left my PSP on a plane :-( )
 
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