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PSP Go Price Drop: Coming Soon?

The price of the PSP Go could drop significantly in coming weeks, according to recent comments by Sony insiders. When the smaller, sliding version of Sony's handheld came to market last year, we were astonished that it carried a $249 price tag. Even though the portable game and media device comes with a decent 16GB of on-board flash storage, it was still priced higher than other competing devices like the iPhone and Zune HD, which arguably contain much more cutting edge technology. A regular old PSP 3000 retails for $169, a much better bargain despite the missing flash storage.

Why are we advising our readers to stick with the older models of PSP? Mainly it's because the extra 16GB of memory does not make up enough of the price of the PSP Go. Additionally, the higher price of downloadable games means that PSP Go customers have been paying much more for their games than regular customers. UMD games can often be had for a few bucks used, while PSP Go users are stuck paying a massive premium (sometimes as much as $30) for downloadable versions of the same title.

How does Sony plan to remedy this and improve the lethargic sales of the PSP Go? We expect to see them adopt two main strategies. The first and most obvious will be a price cut to get the smaller handheld below the $200 price point. Even then, it will be tough going for the so-called 'premium' model. However, we also expect to see Sony unveil a subscription-based download service that vastly improves the price and quantity of PSP games for download on the Go. This service, which could cost in the neighborhood of $10 per month, would give PSP users access to an unlimited repository of titles than could be swapped out for newer games as they become available.

Many fans are still hoping for an external UMD drive to copy over their old games to the newer handheld. Unfortunately, we believe that licensing difficulties and piracy concerns make that dream an impossibility.

What do you think? Would you be tempted by a $199 PSP Go, or will you continue to stick to the old format?


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