Sony Sets Portable Game-Player Rollout
Despite the PSP's initial success in Japan, some analysts have
Ironically, the more successful the PSP is, at least initially, the more Sony could lose on it. One analyst has estimated, for instance, that Sony is losing about $50 on every PSP that it sells.
Company spokeswoman Janette Barrios declined to talk about the specific economics of the PSP, but likened the dymanic to "razors and razorblades," where any negative impact would be offset by royalties.
Barrios noted that Sony used a similar business model with its PlayStation consoles. Despite the subsidy on its consoles, Sony's PlayStation division has consistently posted profits, Barrios noted."We're not concerned about that at all," she said. The company plans to sell the devices in Europe also, but has not yet given out details on when it will debut the device there or at what price. The U.S. price may surprise some analysts and consumers. In Japan, Sony is charging the equivalent of less than $200 for the PSP. But Barrios noted that the company offered two different PSP packages in Japan. One was a value pack similar to that offered in North America, but for the equivalent of about $240. The version offered for less than $200 was a stand-alone package that did not include a battery pack, AC adapter, memory stick or headphones, she said. In the North American launch, Sony does not initially plan to offer a stand-alone version of the PSP, Barrios said.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV