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Sony dumping PSP at 60% below cost

Last response: in Cell Phones & Smartphones
October 31, 2004 4:01:07 PM

Archived from groups: comp.sys.palmtops.pilot (More info?)

Its official:

Sony's planning to illegally dump their Sony PSP at 60% below cost, selling
PSP for only $180.

Dumping maybe tolerated amoung full-sized game consoles, but not in the
handheld computer market that is very competive. This is a highly illegal
and anti-competive move by Sony. And they should not be allowed to get away
with this!

Zodiac, Palm, Dell, HP, PocketPC, Apple and anybody who makes handheld
computers or MP3 players should prepare to sue Sony for being monolopistic
a-holes and trying to take over a market by dumping their product at a 60%
lose. It is against the law to sell products at a lost particular when the
market for handhelds is already well established. Dumping products is
anti-competive, monopolistic, highly unethical, and highly illegal. Shame on

Somebody should put an end to this by filing an injuction against them when
they launch their product or sue Sony for damages inoccured by dumping.



the PSP does not compete with PDAs, in the world of video games it's common
for manufacturers to sell their systems at a loss and then make money on
video game sales. Two different markets and different beasts my friend.

i understand you're looking out for the good of the market. but you're
talking to consumers in this forum and we won't sue anybody for dropping
prices ...we'll leave that to competitors of Sony.



And this isn't even a case of dumping. They're selling the device at a
competitive price. It's their perogative to take a loss on the hardware if
they want to.


Bullsh!t. A PSP is a handheld computer.
Just because Game console companies have been able to get way with dumping
their products in the past does not make it right! If fact is always been
unethical practice.

What changes things now is that there is an ALREADY
established market for handheld computers that
sony is targeting in a predatory manner by selling
their product at a $200 dollar lose per unit.

You might argue that its not direct competition, but you are wrong. PDA's
and PSP are both handheld computers. You are not making an accurate
distingish. This hurts futher grow prospect of PDA device. Tell me what
happens to the future of PDA's when PSP takes over the market by dumping
what happens to Tapwave Zodiac, and the future
games that will never come to PDA's as a result
of this illegal action?

"Dumping: The practice of selling goods abroad below their normal market
value or below the price charged for the same goods in the domestic market
of the exporting country. Dumping can be a predatory trade practice whereby
the international market, or a certain national market, is flooded with
dumped goods in order to force competitors out of the market and establish a
monopoly position. Oftentimes, government subsidies are used to help absorb
temporarily the losses caused by predation, leading to friction among trade
partners. Dumping and predation are considered to be unfair trade practices
and, as such, are prohibited under many national trade laws. The most common
antidumping measure is an added import duty calculated to offset the
"dumping margin," that is, the discrepancy between home price or cost and
the export price.

Furthermore, Sony actually pays more to develop their own integrate circuit
components. Tell me how much does it cost Sony to have their own chip
fabriabtion facility, and R&D to support
it, and all the overhead involved? This costs billions and billions of
dollars... Sony is not factoring this into their cost. They are losing
subtantially more money per unit than $200 dollars if you factor this
overhead into the equation.
In fact the Sony componets are actually more expensive than the industry
standard due to this. Tell me how this is good for the free market to allow
Sony to establish a monopoly that forces you to buy everything from Sony at
the expense
of a free market?


Well, Sony does use those chips in other devices they make, so you can't
allocate all of that cost, or even most of it to the PSP.

The fact is, the PSP is not going to compete with PDAs. Maybe a tiny bit
with the Tapwave, but even that is a stretch at best. Sony also has US
operations, so I'm not even sure the main part of that definition applies.
Even so, it's easy for them to aregue that in order to compete with Nintendo
they have to keep their price down.

Honestly, I don't see how this hurts anyone in a material sort of way. It's
survival of the fittest right? For comparison, look at what happens when a
low-cost carrier comes into a new airport. The big airlines cut fares,
taking losses until that carrier is gone. I supose I'm just anti-regulation
for this sort of thing. I prefer to leave it up to the marketplace to
determine what they want.


Yes, but its not survival of the fittest. Its survival of the deepest

Why is it that the only company that has been able to take on Sony in the
game console space is Microsoft who has even deeper pockets than Sony?
The answer, this has nothing to do with free market competition, its about
monopolies take each other one. Don't let sony turn handheld computers into
another monopoly and destory the PDA industry.

Most companies in the PDA area don't have deep pocket's like sony. But they
have good products, and are very competitive.
Sony just takes dumping products at a 200 dollar lose and making it
impossible for PDA's to
attract game software developers.

"Well, Sony does use those chips in other devices they make, so you can't
allocate all of that cost, or even most of it to the PSP."

BS, those fabs are used almost exclusively for game consoles and handheld
computer chips. that expense is directly applable to the cost of the PSP.
not to mention all the money Sony paid to IBM to aquire this technology.

More about : sony dumping psp cost

December 9, 2004 4:28:41 AM

Archived from groups: comp.sys.palmtops.pilot (More info?)

The Sony PSP will always be considered a gaming machine first and all
other devices second. Most of your top console companies have taken a
loss on hardware at launch, with the knowledge that once the get a
consumer base they can make thier money back in software. They (console
manufacturers) have used this technique for years if not decades. You
can point a finger and shake it, but at the end of the day nothing can
be done to stop any company from selling proprietary hardware at a
Arcane Hayter
December 17, 2004 5:47:56 PM

Archived from groups: comp.sys.palmtops.pilot (More info?)

I agree with bynight. How is Sony expected to compete in such a tight
market? It may be illegal to dump their product, not that I mind, but
how are they expected to compete with the DS and Nintendo? Just because
the price in Japan is higher right now than it will be in the US
doesn't make it Illegal. It's a strategy to make sure that it
doesn't leak into the US before it's supposed to. It's the
American way to at least look for the cheapest one at the same quality
before buying, and if that's what it takes people will wait longer to
buy. Sony and many magazines stated that the Japanese release price
would be high because of the demand, but in the US would be slightly
lower because of the Dollar : Yen ratio. And when were games ever
popular on the Handheld PDA systems. I've heard of some, but Sony is
making a device of another caliber; the bullet just doesn't fit this
gun. I haven't seen Sony advertising it as a calendar with windows
software on it. And If you want to compare this system to the PDA, look
at the new Mobile phones that are going for just about nothing now.
They have games I've heard of, take pictures, have internet, and even
keep that oh so important calendar. You have to look at everything on a
broad spectrum, all electronics are crossing fields that they may not
have belonged in before, but because a price drops to increase sales is
not a reason to raise concern. Those people who want PDA's will get new
models that are more advanced and improved because they want PDA's for
their specific values. So what if one or two company's sales go down
some, that's what entrepreneurship is, taking your losses and getting
back up with new and innovative designs. Survival of the Fittest my