The PSP Go has been criticized from the start for its $250 price point, something that Michael Pachter called a "rip off" and then later apologized for on IndustryGamers. Speaking to MCV, SCEE president Andrew House said that the reason for the asking price is not retail margins or R&D costs.
"Those aren’t the factors. When you introduce a new piece of hardware you have the opportunity to say there is a certain premium that is associated with it, and we took that into account," said House. "As with all hardware launches you look at the business model, the cost structure, and the necessarily level of profitability, and you use that to set the wholesale price. Much as we do with any other hardware."
When asked about having expensive devices in the market during a recession, House responded, "Clearly the industry as a whole has seen some impact from the recession. I think everybody would agree we’ve held up tremendously well in the circumstances. On balance we are still a good value for money entertainment form, especially in terms of dollars per hour spent. So I don’t think there is a conflict – you have to be clearly sensitive to consumers’ perceptions right now. I am something of an optimist; I think there will be a turnaround within this calendar year."
House can be optimistic all he wants, but it doesn't alter the fact that, as nice as many gamers think the PSP Go looks, they also think that it's too rich for their blood. Of course, nothing is stopping them from dropping the price later, so Sony may just be trying to feel out what customers are willing to pay.
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