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so they spent all that development money to find alternatives (which sound absurd) to help sell their previous models?...i dont think so.
The new PSP is most likely targeted at a demographic they discovered more recently...nowadays people dont want to carry around UMD's, they want portable games on memory (i.e. iphone).
Its more likely they expect hardcore fans to buy version of the PSP as well, marketing it as a proper "2nd version" rather than minor improvements.
The new PSP Go is is priced @ about $250, and with no way to convert previously owned UMD discs to become compatible with the Go the product seems rediculous, right ?? Wrong. heres why: No one is dumb enough (i hope) to purchase the new psp go for $250. Sony made the price this high so comsumers will either opt out and purchase the psp3000 series for 50 bucks less, or pitch in 50 bucks more and get the psps slim, THUS increasing sales in either the ps3 or the psp3000 series. This will especially be effective come the Christmas season. Kudos to SonyLpKing
Not a bad theory if you don't add in the extreme cost of Developing,Marketing and distribution.Trust me a lot of people will buy the PSP GO only to regret it BUT they will scream how much they love it so they don't feel like they got ripped off.
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