Sony: Sorry, No Price Cut for UK PSP
Sony’s Jack Tretton might be busy denouncing the newly launched Nintendo 3DS but his company’s own handheld has been in headlines recently too.
Europeans looking to invest in a PSP will be pleased to hear that the price of the portable console has just dropped considerably. Unfortunately, UK gamers won’t be treated to the same price drop.
The PlayStation Portable’s European price has just dropped to €129.99. This is down from the previous €179.99 price tag. However, Sony says the UK price will remain at £129.99 because exchange rates are preventing them from making a similar move in the United Kingdom.
"[The European price cut] has been made possible by favourable fluctuations in the exchange rate between the Euro and the Yen," the Telegraph quotes Sony as saying in a statement. "Since we in the UK are vulnerable to two exchange rate calculations, pounds into Euros and Euros into Yen, we are not in a position to offer a similar cut in PSP for the UK."
Those with their ear to the ground will know that the PSP2 (aka the Sony NGP) is expected to launch in some markets before the end of the year, so purchasing even a cut-price PSP might be construed as a bit foolish at this late stage. However, with reports that the NGP will cost quite a lot, price cuts on older models are always appreciated.
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The £/€ exchange rate is not 1.0.
Paraphrasing: "We know that the UK will pay it, so we're not going to reduce the price"....
Not even ANY reduction in price, or other incentive? Bullcrap, Sony.
The British already pump a lot of money into the EU..and into Sony products. This is what they get in return.
@ Nick_C,
You're right, we haven't hit parity with the Euro yet. But we're not far off, it's currently at 1.1012 Pounds to the Euro. (Taken directly from the Post Office).
When you factor in taxes, bank charges on currency conversions, and in this case a double conversion, it means Sony would make less money selling the PSP at £129 then selling it at 129 Euros.
The other thing to think about is the general trend of the Euro vs the Pound. Any third party can see that we've been heading towards parity. It doesn't make any sense to reduce the price now in the hope that the Pound will get stronger. It's a big financial risk when you consider what would happen if the Pound ever hit parity and even went further, Sony would either start making a loss or would have to increase the price again. The latter would result in lost revenue too simply because it's a marketing nightmare.
So from that point of view, I think it's completely understandable. In their shoes, I would make exactly the same decision.