Why is PSP so expensive

Crash · 04-07-2005, 03:13 PM

cause Sony can't afford to lose anymore money on it's operations.

Sony's total debt stood at 6.71 trillion yen ($61 billion) on June 30

http://quote.bloomberg.com/apps/news...As0&refer=asia

Quote:

Sony's shares fell 1.5 percent to 3,890 yen today in Tokyo. The Nikkei 225 Stock average rose 0.4 percent.

Standard & Poor's today said it is reviewing Sony's A+ long- term debt rating, its fifth-highest, for a possible downgrade because the acquisition may damage Sony's balance sheet. MGM's losses over three years, which total about $740 million, make it ``uncertain what contribution MGM can make to Sony's profits,'' S&P said. Sony's total debt stood at 6.71 trillion yen ($61 billion) on June 30.

That's a lot of debt... Microsoft has lost $5+ Billion this generation too... No wonder Nintendo is in no hurry to try and take over the #1 spot. They are still making good money even in last place.

Dark Samurai · 04-07-2005, 03:31 PM

Damn, and here I am ready to say that the PSP is really 180-190 dollars but because of the value pack its $250.

But damn, you just stole my own answer from me...

DarkMaster · 04-07-2005, 03:32 PM

*sigh* This is Sony the ELECTRONICS company's loss, not Sony COMPUTER ENTERTAINMENT. You might be surprised to learn that they are two completely different divisions.

And considering the technology and capabilities of the PSP, as well as what is included in the value pack, it is not over priced at all.

Blackmane · 04-07-2005, 03:44 PM

They are probably not making much money on the hardware right now, if they aren't already taking a hit for it. Probably not as bad as Microsoft initially was, but still, probably something.

Null · 04-07-2005, 03:47 PM

people never seem to understand that dark, some *coughcrashcough* are just too quick to jump on anything bad that concerns sony.

and it is certainly not expensive. people were saying it was going to cost 400, and it gets released at 250 in a VALUE pack, normal package will prolly come out at 200, yet they still complain expensive. i dont see how its expensive when its not much over what a DS costs. i'd say both are very well priced for what they are.

MuGen · 04-07-2005, 03:57 PM

At least someone (DarkMaster) understands that divisions play a huge role in the electronics business.

Sony has spent millions on it's HDTV and WEGA televisions, and Samsung is currently destroying them in that department. That is the result in the huge debt Sony Electronics is in. Don't be so trigger happy with dismal news about Sony... because it's just their Consumer Electronics division that is in debt. Different divisions are funded by different subsidiaries and third parties.

Sony Computer Entertainment is a division funded by many different subsidiary companies. The losses in their consumer electronics division hurt the company as a whole, but it does not effect the price point of the PSP.

Do your homework.... PSP is reasonably priced. Everyone might not like that it's only available as a value pack, but that's no grounds to say it is overpriced. The solo unit in Japan is $185.

EDIT: Did anyone else notice how contrived it was to post this thread, considering this article reports on their situation on June 30, 2004.

Blackmane · 04-07-2005, 03:59 PM

My parents just bought a Sony Wega 42" Flat Screen.

I hope that helps pull you out of debt, Sony. Best wishes.

MuGen · 04-07-2005, 04:00 PM

LOL... their constribution will probably be noted, considering Samsung is owning Sony in the TV/Electronics department.

Perfect Stu · 04-07-2005, 04:09 PM

best. thread. ever.

Crash, you're on a roll.

MuGen · 04-07-2005, 04:14 PM

Why am I always the one that gets rebuked for starting threads of a controversial and/or pointless matter?

Perfect Stu · 04-07-2005, 04:17 PM

Quote:

Originally Posted by Kyuzo

Why am I always the one that gets rebuked for starting threads of a controversial and/or pointless matter?

The same reason why the dinosaurs died...

MuGen · 04-07-2005, 04:19 PM

For some reason I understand you.

EDIT: Update from Credit Suisse First Boston....

Sony sold 600,000 to 700,000 units of the PSP, as the game player is known, in the first week of U.S. sales, Credit Suisse First Boston said April 1, citing its own survey of retailers. Sony said it prepared 1 million units for the release.

Crash · 04-07-2005, 04:45 PM

perfect stu, you're what keeps these boards fun... I love you man!

GameMaster · 04-07-2005, 04:51 PM

Quote:

Originally Posted by Kyuzo

Why am I always the one that gets rebuked for starting threads of a controversial and/or pointless matter?

How dare you turn the focus of this thread toward yourself!

Crash and other members have the full right to discuss the good and bad factors of a gaming company and anything accompanied with it.

MuGen · 04-07-2005, 05:01 PM

Quote:

Originally Posted by GameMaster

How dare you turn the focus of this thread toward yourself!

Crash and other members have the full right to discuss the good and bad factors of a gaming company and anything accompanied with it.

I looked at your profile GM, and just realized your 18 years old..... but I'm not implying anything. I'm not going to sit here in a constant fued with you man, I have better ways of wasting my time.