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Can the PSP cause problems for iPod?

By Charles Starrett Earlier this week, a rumor floated around that the PSP might receive a hard drive as soon as 2006. While this turned out to be speculation, it got me thinking: would a HD equipped PSP be able...

By Charles Starrett

Earlier this week, a rumor floated around that the PSP might receive a hard drive as soon as 2006. While this turned out to be speculation, it got me thinking: would a HD equipped PSP be able to give Apple's iPod a run for its money? This turned out to be a much more complex question than expected.

Right now, Apple enjoys a huge lead in the digital music business. Sony's response, up until now, has been in the form of Network Walkmans which were limited to playing Sony's proprietary Atrac format. They have met with little success. The PSP (and a newly released Network Walkman) both include support for MP3, albeit limited. They are supposed to represent Sony's push to overtake the iPod. As much as I love the PSP, I have to admit that this is too little too late.

First of all, anyone who has used both the iPod interface and the PSP's audio interface knows the rest of the story. The fact of the matter is that in comparison, the PSP's interface is archaic and flat out difficult to use. I carry around three items in my pocket that can play digital audio files: an iPod, the PSP, and a Treo 650. I use the iPod to listen to music. I use the PSP to play games, and watch the occasional mp4 TV show. I use the Treo to make calls and have wireless access to my email and the web. Why do I do this? The answer is simple: I use the device that is best suited to its task.

In today's crowded gadget market, many devices do a multitude of things. The trick is to find the ones that fulfill your needs the best. The devices I carry aren't with me because they can do everything in the kitchen sink—they are with me because they are all the best at what they do. Both my Treo and my PSP can play music, but when I want to listen to music I choose to use my iPod. It's not because I don't realize the other two's capabilities, it's just that the iPod is better at playing music than the other two. The same goes for the PSP: I play games and watch the occasional movie on it, because its controls and screen make it the best choice.

The idea of the PSP having a hard drive in it for music storage, without a change in navigation software, is absolutely absurd. The navigation structure is, as mentioned above, archaic—you have to put your music into a folder—and use folders inside folders as playlists, then pick your songs out from that. For all the strengths of the PSP, this is simply not acceptable if they intend for it to compete with the iPod. As for current configurations? Forget it. Memory Stick Pro Duos are expensive—in fact, prohibitively so when compared to the prices of current iPods. And let's not forget the popularity of iTunes, and all the other online music stores for that matter. Sony's Connect store just can't compete with the popularity of these other stores and their formats. The fact that the PSP can't play any of them is a major detriment.

Over the long term, though, it is possible for the PSP to cause some problems for the iPod. Should Sony beat Apple to the punch in opening an all-digital movie/tv episode store, they could make huge inroads into Apple's long term business model (assuming Apple is planning this strategy, which I think it's obvious they are). In this sense, the rumored hard drive would make sense. Should Sony be the first to offer your favorite TV shows on-the-go, and fix their horribly flawed navigation structure, they could become the player to beat. This will grow increasingly apparent as generations that grew up playing video games (and never really stopped playing) gain more and more disposable income. Apple has yet to show they plan on going that route, and that (for Apple) is both a weakness and a strength.

The bottom line in this situation is that Sony needs to address the already existing problems of the PSP's media functions before they even think of taking on competition as strong as the iPod. Will I end up listening to the occasional song on my PSP? Probably, especially if my girlfriend has fallen asleep on a flight while listening to my iPod. Will I someday listen to music on my PSP instead of carrying my iPod as well? At this point, I doubt it.

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