PSP won’t and need not catch up with DS

Analyst Michael Pachter is at it again, saying the PSP may be getting outsold on a two-to-one basis in its handheld duel with the Nintendo DS. But that really doesn’t matter as long as Sony gets its profits.

In an interview with the website Wired, the Wedbush Morgan Securities analyst said that Nintendo has enjoyed tremendous success with the platform that it pioneered, capitalizing on its bread-and-butter target market and momentum from its Game Boy Advance fan base.

Pachter emphasized that the kid-friendly paradigm omnipresent in the Nintendo business model has done wonders because of the stigma attached to handhelds. These mini-consoles are looked at as starting bases for console games and serves children well. In contrast, the high-powered PSP is aimed towards 18-35 year olds, which has succeeded to some extent, but not to the magnitude that Nintendo has.

One of the criticisms against the PSP is that its software isn’t selling well. Pachter says “software is going to grow as the installed base grows. There are really not many more third party games for the DS than for the PSP. Most third parties are supporting both.”

The analyst reiterated his prediction that the PSP is going to go through some remodeling but said that it won’t happen this year. He says that the processing and graphic prowess of the PSP isn’t in question, but additional storage may be called for as users have been happy with the music and video features of the machine. “Flash is more likely, given the success of the iPod Nano,” he says.

“I don’t think that the gap matters at all, so long as Sony makes money,” concludes Pachter.

Via Wired

Analyst Michael Pachter is at it again, saying the PSP may be getting outsold on a two-to-one basis in its handheld duel with the Nintendo DS. But that really doesn’t matter as long as Sony gets its profits.

In an interview with the website Wired, the Wedbush Morgan Securities analyst said that Nintendo has enjoyed tremendous success with the platform that it pioneered, capitalizing on its bread-and-butter target market and momentum from its Game Boy Advance fan base.

Pachter emphasized that the kid-friendly paradigm omnipresent in the Nintendo business model has done wonders because of the stigma attached to handhelds. These mini-consoles are looked at as starting bases for console games and serves children well. In contrast, the high-powered PSP is aimed towards 18-35 year olds, which has succeeded to some extent, but not to the magnitude that Nintendo has.

One of the criticisms against the PSP is that its software isn’t selling well. Pachter says “software is going to grow as the installed base grows. There are really not many more third party games for the DS than for the PSP. Most third parties are supporting both.”

The analyst reiterated his prediction that the PSP is going to go through some remodeling but said that it won’t happen this year. He says that the processing and graphic prowess of the PSP isn’t in question, but additional storage may be called for as users have been happy with the music and video features of the machine. “Flash is more likely, given the success of the iPod Nano,” he says.

“I don’t think that the gap matters at all, so long as Sony makes money,” concludes Pachter.

Via Wired