Tiny PlayStation plays hard to get

By Adam Graham / The Detroit News

http://www.detnews.com/2005/technology/0503/23/A01-126132.htm

New Item• It doesn't take ESP to figure out the PSP is going to be B-I-G. • Sony's new PlayStation Portable -- the cool kids call it PSP -- goes

on sale tonight at midnight at many Metro Detroit video game retailers.

• But don't just show up hoping to snag one. Most of Sony's first run of 1 million units is already accounted for through pre-orders, and the machines are expected to be in scarce supply for a number of weeks.

• Sniff around and you may find one, but here's a gauge as to how hot they are: Some retailers are already taking pre-orders on the second shipment of PSPs, for which Sony hasn't promised a release date.

• The shiny, sleek handheld device plays video games, MP3s and movies -- initial units come packaged with a copy of "Spider-Man 2" -- and experts say it will not only end Nintendo's dominance of the handheld market, but also revolutionize the industry.

Redefine Gaming?

• "The PSP totally redefines gaming, period," says Paul Koulogeorge, vice president of marketing for video game retailer EB Games, noting its superior graphics quality, buzzworthy add-on features and sexy design. "It's a milestone in the industry. It takes video games to a whole new level."

• Everything about the PSP tells Michael Ames, 16, of Royal Oak he needs to have one. Everything, that is, except for the price.

• At $250, "it's a little expensive," he says.

Profit

The Economics – A Monopoly?

• Market for PSPs.

• It would seem that there’s a big profit.

• $250 seems like a lot of money.

250

Quantity1,000,000

PriceD

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… or a Competitor?

• Market for OTHER games.

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Qo

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• Is the new PSP a substitute for other games?

• Are they a substitute for the new PSP?

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Price

Quantity

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