We have all found out via Engadget that Sony-Ericsson may be planning (and developing) an Android-powered PSPgo-like smartphone. It seems it’s a landscape slider with all the PSPgo buttons in place, except the D-pad which has been replaced with a long touchpad. It should be powered by Android 3.0 coupled with a 1GHz [wikipop]Snapdragon CPU[/wikipop] and its graphics should be powerful enough to play PSX/PSP games. Engadget estimates that its release should be somewhat around the corner, with October 2010 as a possibility.
OK, nice rumor. We all know many people have been asking for a PlayStation phone and this may be it. Let’s say for the sake of our small analysis that this rumor is actually TRUE. What does it mean? Where does it lead to? Why has Sony concealed this device up until now?
First and foremost, let’s consider what Sony currently has in production. On one hand we have the PSP-3000 which can play both UMD and digital titles, while on the other hand we have the PSPgo which targets the digital distribution fans. We don’t have an update on their sales for August, but in March 2010 Sony had already sold 17 mil. units in North America and 60 mil. worldwide. On the other hand, back in March this year the company declared that the UMD format is still “alive and well” and that they had no plans to ditch it.
Sony has also stated they have a dual strategy concerning their handheld line, which makes sense as they cannot ditch UMD (and retailers) over night. Retail is still going strong, many people still buy these games so it’s not a very healthy business decision to give up this channel just yet. On the other hand, Sony has a pretty powerful digital distribution channel, the PSN.
So, from my point of view, the best business decision IN CASE the upcoming rumored smartphone exists, is to DISCONTINUE THE PSP. First of all, I asked myself why Sony-Ericsson would make such a great deal about it and keep it a secret. Imagine they would have announced it back at E3 this year. That’s June. How many PSPs do you think Sony would have sold between June and October? Closed to none? Keeping it a secret and announcing it at TGS for example (in September), could be enough for a late October, mid-November launch. On the other hand, pushing two PSP offerings in the same time with such a smartphone, can hurt sales (of the smartphone, of course).
So, having prepared you in the paragraphs above, I can safely say that Sony will discontinue at least one of its PSP models this autumn IF the smartphone rumor is TRUE. My guess, as well as everybody’s, would be the PSPgo but, there are other scenarios, like killing the PSP and PSPgo for good. Eventually, the PSP will stop selling like any other console out there approaching the end of its life cycle. It’s not a matter of IF, but a matter of WHEN. Starting with a smartphone that can play PSX/PSP games also means this is the first device (the flagship) of a range, so cheaper/limited versions will eventually see the light of the day, effectively killing the PSP alltogether, as the price goes down.
Will it happen in October? I don’t know. I just took a rumor and ran with it in my mind. Is this what I believe will actually happen. Well, I think Sony-Ericsson is late to the table and they know it. If they intend to develop an instant hit then yes, the Android-powered PSPgo-like smartphone could be the right solution. Android is on the rise, PSN is doing very well (much like the PS3 sales) so adding a new device to the mix will fill a gap while starting a new era of mobile gaming devices. Let’s just wait and see if they are smart enough to do it. What do you think?