The Money Making Game #4: The PSP2

We certainly have no problem getting caught up in the fun of playing games, but the people who create them have their pocketbooks to worry about, too. In this column, finance expert and GameSpy contributor Chris Morris guides you through the tricky corridors the gaming industry’s financial side, touching on big-time business decisions and how they matter to the common gamer.

If the latest whispers are correct, we should get our first official look at Sony’s PlayStation Portable 2 before the end of the month. Sony, it’s said, has scheduled a meeting with select press outlets in Japan for January 27, 2011 to make the announcement. Regardless of the veracity of these particular rumors, we can all agree on one thing: The PSP2 is coming, and probably before the end of the year. And while I’ll give Sony credit for timing this announcement so it’s not caught in the blast zone of the 3DS launch coverage, something about this product has me concerned.

If we’ve learned anything from the iPhone’s success, it’s that the days of single-function devices are rapidly coming to an end — and products that don’t evolve are doomed. We don’t know anything about the PSP2 yet, other than vague talk about performance and graphical improvements. But amidst all the chatter (much of which has been coming from developers working with the systems), we haven’t heard any talk about non-gaming functionality.

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The Money Making Game #3: Is OnLive the Next Big Thing?

We certainly have no problem getting caught up in the fun of playing games, but the people who create them have their pocketbooks to worry about, too. In this column, finance expert and GameSpy contributor Chris Morris guides you through the tricky corridors the gaming industry’s financial side, touching on big-time business decisions and how they matter to the common gamer.

OnLive’s initial announcement of its self-titled, gaming-on-demand service prompted a lot of skepticism. With vaporware services like Phantom still fresh on the brain, gamers didn’t trust the company’s claims of immediate streaming and strong publisher support.

Even the inclusion of CEO Steve Perlman — who previously led development on the technology behind QuickTime and founded WebTV — didn’t do much to lower eyebrows about the project. Infinium Labs’ Phantom, you’ll recall, had Xbox co-founder Kevin Bachus running the show.

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The Money Making Game #2: The PlayStation Phone

We certainly have no problem getting caught up in the fun of playing games, but the people who create them have their pocketbooks to worry about, too. In this column, finance expert and GameSpy contributor Chris Morris guides you through the tricky corridors the gaming industry’s financial side, touching on big-time business decisions and how they matter to the common gamer.

While the Internet has been buzzing about leaked images and details of what seems to be a prototype PlayStation Phone from Sony Ericsson, the debate has generally circled around whether the leaks were real or faked. The question no one seems to be asking is: Is this a good idea in the first place?

Just for the sake of argument, let’s assume Sony is, in fact, working on a PlayStation Phone. The company, after all, hasn’t done much to quell the rumors, with CFO Masato Kato stirring the embers during a quarterly results conference call earlier this month when he said “The PSP … was more concentrated I’d say [at the] core gaming segment rather than the light game, but now we are addressing that market as well.”

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The Money Making Game #1: Nintendo’s $300 Handheld

We certainly have no problem getting caught up in the fun of playing games, but the people who create them have their pocketbooks to worry about, too. In this column, finance expert and GameSpy contributor Chris Morris guides you through the tricky corridors the gaming industry’s financial side, touching on big-time business decisions and how they matter to the common gamer.

When Nintendo announced the price of the 3DS, jaws dropped. 25,000 Yen converts, as you undoubtedly know by now, to just under $300 — a figure the gaming world howled was too high. Many gamers initially assumed the system would carry the same price tag when it hit the states, and the outrage increased. Analysts and industry observers predicted (after currency conversion and other factors) that the U.S. launch price would likely be closer to $250, but this did little to mollify people.

What many people tend to ignore or forget, though, is that Nintendo made some enormous pricing mistakes with the Wii — leaving millions of dollars on the table. And with the 3DS, the company’s taking steps to ensure it doesn’t repeat those gaffes. $250 (or even $300, if the company decides to surprise everyone and roll the dice) is, admittedly, an extraordinarily high price for a handheld gaming device… particularly one that has a single function. And this pricing strategy could backfire and give Apple a window to increase its market share. But from a pure business standpoint, it’s a sure way for Nintendo to regain the confidence of its investors.

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