NL Game Clain Refuses to Stock PSP Go!

[mmntech]

Link

We all knew this would happen eventually.

 

[AstroManLuca]

How does this help them exactly? I also think the PSP Go is stupid but if I owned a game store I'd still stock it. How much money do retailers make from UMD games anyway, compared to how much they'd make from selling the PSP Go instead of the standard PSP?

 

[erwos]

Originally posted by: AstroManLuca
How does this help them exactly? I also think the PSP Go is stupid but if I owned a game store I'd still stock it. How much money do retailers make from UMD games anyway, compared to how much they'd make from selling the PSP Go instead of the standard PSP?

If it's like every other new console or handheld, they'll make almost nothing selling it. What I've read is that the stores make their money off games and accessories at first, not the actual console/handheld. In fact, when you factor in shelf space, employee training (it happens!), and other costs, they will probably at best break even on the new console/handheld, and maybe even lose money.

The PSP Go is a handheld they can't sell games (directly) for, and doesn't really have that much in terms of accessories. What incentive is there to retail it?

My guess is that Sony will sell "download codes in a box" to compensate. We shall see.

 

[Beev]

Hardware makes for notoriously low profits. Software, not so much.

However, this chain is stupid. They're just proving that they don't give a shit about their customers. It's about the money and nothing else. Reminds me of the cable companies of the United States.

 

[DaveSimmons]

Wasn't the point of the insane two hundred forty-nine dollar pricetag that Sony would give some/most of the extra $100 in gouging to the stores to give them a reason to carry it?

I wonder if Sony has gotten greedy and is keeping too much of the gouging for themselves?

 

[Krakn3Dfx]

I can see where the PSP Go pretty much takes away a huge chunk of profitability for retailers. Sure, you can sell a card in store for a game for the PSP, but then you'll still need to download that game from PSN to play it, so why even bother going to the store to buy it when you can just buy it right on PSN?

PSPGo is a pretty bold experiment into how an all digital gaming platform will affect marketing strategies in the retail sector for stores like Gamestop IMO. I'll be interesting to see the effect it has long term.

 

[AstroManLuca]

Originally posted by: erwos

Originally posted by: AstroManLuca
How does this help them exactly? I also think the PSP Go is stupid but if I owned a game store I'd still stock it. How much money do retailers make from UMD games anyway, compared to how much they'd make from selling the PSP Go instead of the standard PSP?

If it's like every other new console or handheld, they'll make almost nothing selling it. What I've read is that the stores make their money off games and accessories at first, not the actual console/handheld. In fact, when you factor in shelf space, employee training (it happens!), and other costs, they will probably at best break even on the new console/handheld, and maybe even lose money.

The PSP Go is a handheld they can't sell games (directly) for, and doesn't really have that much in terms of accessories. What incentive is there to retail it?

My guess is that Sony will sell "download codes in a box" to compensate. We shall see.

Good and informative post, +reps for you

 

[Krakn3Dfx]

Originally posted by: erwos
My guess is that Sony will sell "download codes in a box" to compensate. We shall see.

I'm sure that's exactly what they're going to do. I honestly question how successful that strategy will be for stores, if you've already got to access PSN to dl the game, why add the extra step of going to Gamestop to pick up a card for that game.

More likely, if someone doesn't want to use a CC, they're going to buy a PSN pre-paid card for $20 or $50. I wonder how much retailers make on those.

 

[Injury]

Seems perfectly acceptable for this retailer to me. Eliminating the UMD also means they can't buy/sell used games, which is a service that made Gamestop such a behemoth of a retailer because they (and the stores they've absorbed over the years) are the only ones that did it.

 

[erwos]

Originally posted by: Krakn3Dfx

Originally posted by: erwos
My guess is that Sony will sell "download codes in a box" to compensate. We shall see.

I'm sure that's exactly what they're going to do. I honestly question how successful that strategy will be for stores, if you've already got to access PSN to dl the game, why add the extra step of going to Gamestop to pick up a card for that game.

Well, maybe it'll have a map or poster, like the GTA and FO3 expansions have. Or, call it a collector's edition and bundle some other DLC code with it.

More likely, if someone doesn't want to use a CC, they're going to buy a PSN pre-paid card for $20 or $50. I wonder how much retailers make on those.

Probably not a lot - but they can stash them in the checkout line like the other gift cards. They're very low cost to stock, I should think.