PSPgo price cut “too meager, too late” says analyst

Yesterday, Sony announced a price cut for their UMD-less handheld the PSPgo, setting it now at $199. But is it enough to sell more product? Not according to M2 Research’s Billy Pidgeon.

“Sony’s fifty U.S. dollar price cut on the PSPgo is too meager and too late,” he told Eurogamer. “Now that ‘sources’ have revealed more details regarding PSP2, including a proposed fall 2011 date, it is very unlikely that these prices will clear shelves.”

Pidgeon goes on to warn that the “PSP will see sharp declines this holiday into Q1 2011 without more aggressive price cuts.”

Should Sony be concerned? Or will consumers ultimately be swayed by the drop in price? “I imagine that PSPgo is searching for a sweet-spot in terms of pricing, and certainly under $200 there should be a bigger market. However, I think it’s too early to say whether this will be the right price point or whether this is now the right platform for core gamers,” he added.