A major retailer of consumer electronics is set to join gaming retailer EB Games in refusing to stock the new Sony PSP Go because of margin issues and a move by Sony to strip business away from retailers with the expansion of the Sony content network that will see the struggling Japanese Company sell games music and movie direct to consumers.
EB Games chief executive Steve Wilson has already told Sony that his business is based around selling both hardware and games and that the current margins that Sony Computer Entertainment is offering to sell the PSP Go is “not enough”.
“We make our money selling games and often we are giving away the console to get the game sale. The margin that Sony is offering to sell a piece of hardware is not enough” he told SmartHouse.
With the new PSP Go Sony wants retailers to sell the hardware console while they sell the content online. The move has alienated retailers worldwide after Sony removed the drive that allowed games to be purchased from retailers and played on the new handheld console.
When Wilson was asked whether he was happy with EB Games selling a piece of gaming hardware that prevented future gaming sales he said “No our business is selling games.”
Other EB store management said that they were concerned that both Microsoft and Sony were planning online content that would be sold directly. “This is a real concern as both Microsoft and Sony are currently working on new online gaming consoles that eliminate the need for a retailer. This will hurt all gaming retailers around the world.
On September 16th, the Dutch-based retailer Nedgame announced that they would not stock the PSP Go, claiming that the handheld was overpriced and forced a monopoly on game sales, killing the used games market.