Sony NGP to Cost $250 for Wifi, $350 for 3G?

When Sony Electronics finally took the wraps off of the PSP successor, previously called by the public the PSP2 and currently codenamed NGP; both the press and consumers were blown away by what the system had to offer. We encourage to read our previous post where we dive into the NGP specs but for those who are playing at game, you will know that there is not one singular feature that stands out. Instead, Sony has created a cutting edge machine, much like the PS3 when it launched that offers power unparalleled by any currently and probably for some time to come. But the hardware is only part of the story, this time around, Sony has learned a good deal from both the PS3 and the PSP and has an extremely excited 3rd party presence that will sure help the NGP reach a success that the PSP was not to. Two questions were shortly discussed after the unveil; Is NGP really the products name and how much will this handheld cost.

The first question is the easier of the two. NGP stands for Next Generation Portable which is an internal codename that Sony used, during the products inception. The final product name has yet to be announced but think of it like when the original AppleTV was called iTV till an actual name (AppleTV) was given to the product. Although I would say that nearly two months after the product announcement and the word NGP sits quite nicely. After all, everybody thought Nintendo was crazy to call their next generation console the Wii and 80+ million units later, I don’t believe that the name hurt them one bit. Still, the product  name was the least of Sony’s worries or the perception that soon would follow the press release. Instead, question two began to set in. How much would the NGP cost?

Speculation soon began as everybody started to flashback to the PlayStation 3’s $600 launching price that hampered the systems beginning life success. Worst of all for Sony, they were still losing nearly $300 still on every PlayStation 3 unit sold during that time, despite the products high price point. Many thought that the NGP would follow the same faith, speculating that the device could cost as as high as $499 and as low as $399. Sony soon followed with press releases and interviews to help put out of the fire. While they did not go as far as to confirm a price point, Sony was quick to point out that they understand and have learned from the PS3’s launch and that the NGP would not cost the price of the PS3.

In the month to follow, it was also revealed that indeed learning from the PS3, there were many technologies that Sony had originally planned for the NGP but decided to scrap due to high costs. In another effort to help with the price point, all NGP models were originally announced to have 3G capability but Sony has since decided that a two tear approach would be better. Instead, opting to do what Apple does with the iPad and offering both a Wifi only model and  a higher priced Wifi+3G  NGP. Those familiar with the Apple will note that the iPad 16GB Wifi costs $499 and the iPad 16GB 3G costs $629. If Sony were to follow a similar strategy, the company could gain a lot buy gaining a nice return on 3G models while being able to reach a much wider audience with the Wifi only model.

So where does the $250 model come into play? A recent survey conduced by Ubisoft, commissioned online research firm Toluna to survey US adults about Sony’s upcoming NGP handheld. As Gamestop points out:

the survey asked about price points, stating that the 3G-enabled version of the system would sell for around $350, with a 3G-less counterpart on sale for $250. After presenting those numbers to respondents, the survey asked, “How likely would you be to purchase the Sony NGP now that you know this retail price?”

The one interesting aspect of this is that if Sony is able to release this product at $250, not only is almost half of the price that analysts had speculated about, but it would be a knock on Nintendo’s door who will be releasing their new handheld, the Nintendo 3DS for $250. Though both devices cater to the game on the go, the offering difference between the NGP and 3DS is even bigger then the PS3 and Wii. Of course, in the end, it’s not simply a matter of picking a price point that consumers want. Instead, Sony has to take into consideration the cost to produce each unit, the R&D thats led up to this point and the other numerous costs that continue to go into the NGP department, after a product is launched. All this while still trying to squeeze out money (after all, that is why companies exist) seems like a tough task and maybe that’s where the Wifi and 3G models come into play for Sony and their bottom line.

So how much will the NGP cost? In the end, until Sony announces it or there is a leaked memo, don’t believe anything analysts tell you because they are simply guessing. Would I love for the NGP to start out at $250? Absolutely, but am I going to bet on that price point? Not when we are still a good 8-10 months away from the initial launch. So what do you think? Will the NGP start at $250? Also, what price are you willing to pay for this device?

3 Comments

Comments RSS TrackBack Identifier URI