PSP World

Source: PSP Go Could Get Price Cut Before Release

Two hundred and forty-nine dollars! That was the price announced for Sony's new portable hardware at E3 this year. The handheld, which features 16 GB of on-board flash memory and a sliding screen, will go on sale this October 1st for the price of $249 USD and 249 Euros. Or will it? A corporate source at Best Buy has told us that there "is likely to be some wiggle-room in pricing for Sony's PSP Go," and that they expect the company will announce a slight reduction in price before release. This could bring the price as low as $199 USD, a much more attractive price point for consumers.

The reason for a price cut is obvious: Sony's PSP Go is simply priced too high compared to competitors in the portable media space. Yesterday, Apple Corp. announced sweeping cuts to its iPhone and iPod Nano lineup, which brings the feature-rich 16 GB iPod touch down to $249. The company even took aim at Sony specifically, calling out the PSP for it's high-priced games saying "We're talking about 25, 30, 40 dollars a title. The kids can't afford those titles. Worse isn't the price, it's the buying experience.". Microsoft has also introduced its new Zune HD device at the more competitive price of $219.99. Sony could signal to its competitors that it means business by dropping the price of its flagship digital media device below $199, essentially blowing both of them out of the water. This is what Sony has already done by dropping the price of its home console at $299. A one-hundred dollar difference between the more powerful PS3 hardware and the portable device might also sit better with consumers, many of whom have expressed discomfort with the near-equal pricing of both systems. A lower-priced PS3 console might bring more people to the Playstation brand this holiday, but paradoxically kill the chances of the PSP Go as more consumers opt for a powerful home console instead.

That is why our source at Best Buy says they would be "astonished" if Sony didn't opt for a lower price point before launch in October . Our source told us that product displays for the PSP Go (which feature the price) have not yet been finalized.