This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Hype War Goes to Xbox, but PSP Should Thrive

A more complete gauge on PSP sales should come out later this week when the NPD Group, an industry research firm, releases its November video game sales data.

Analysts say sales of the PSP in recent months have been hindered in part by the attention paid to the Xbox 360, which made its debut last month. The launch drew attention because the Xbox 360 is the first of a new generation of consoles that are expected to be on the market within the next year. With its high-definition graphics, sophisticated online gaming system and multimedia capabilities, the Xbox 360 is expected to steal share from Sony's market-leading PlayStation consoles in the new product cycle.

The PSP "is not where the focus of the gaming market is right now," says Van Baker, an analyst with Gartner, an industry research firm.

But even if Sony were able to push through all the Xbox 360 noise, it faces another problem in pushing sales of the PSP: price. The base PSP package costs $250. Add in a couple games and a decent-sized memory card on which to store game data or some songs, and the price jumps to well over $300.

The PSP's price is "prohibitive," says the Simba Group's Lin. "That's a huge purchase."

The other big problem facing the device is the lack of compelling software titles. To date, there have been no "killer aps," say analysts. Instead, most of the games developed for the system are simply reworked versions of games developed for the PlayStation 2 and other consoles, they say.

"Right now, there is very little on the PSP that is compelling," says Joe Spiegel, who follows the video game sector as a hedge fund at Dalek Capital. Spiegel has no position in Sony but is long shares of Nintendo.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AMZN $675.00 12.00%
MSFT $49.90 0.00%
SNE $24.26 0.00%
AAPL $95.03 0.21%
FB $116.73 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs