Pachter: PSP2 Is Dead On Arrival

During his Pach Attack! Show, Wedbush Morgan analyst Michael Pachter expressed his belief that the PSP2 is doomed to fail as it faces an uphill battle against Apple's iOS devices which gain market share each passing day.

"We're way approaching saturation on the handheld market," he asserted. "We're starting to see DS hardware sales crack, I think the ubiquity of the iPod Touch is cutting into the handheld market. I think the PSP is dead on arrival and I think the PSP2 is going to be dead on arrival."

"It looks to me like young kids are just as happy playing with an iPod Touch or a Nano. The Touch is cool, it plays games, plays music, they're going to put a camera in it and you're going to get all kinds of cool stuff."

As for Nintendo's innovative 3DS, Pachter believes that "the 3DS will prolong the handheld market for the game manufacturers, but ultimately, I think handhelds are in trouble. I really think as the iPod Touch gets more and more powerful, you're going to see a lot of free games over there."

"What's the difference if you play Tetris on an iPod Touch or on a DS? Well, you pay a buck on the iPod Touch, you pay $20 on the DS. Parents prefer $1 or free software, I think the iPod Touch is going to sell really, really well. So, after the 3DS has had its little rush I think the handhelds will continue to decline."

During the same show Pachter also expected that Playstation 3 and Xbox 360 will continue to see price drops until they reach the $200 range in the US by next Christmas, enticing many users to "upgrading their Wiis" as a result.

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Comments

What an idiot.

He contradicts himself by pointing out that the iPhone and iPod Touch have the ability to play music and that the DS has more than just a touch screen.

The PSP2 isn't dead on arrival for various reasons. For one, it's an Android phone, which is this moron had done his research, just with in this year alone, the market for droids is 40%+ among smart phones. Not to mention that yea, it's like a DS with controls and a touch screen, but again it also plays music and is a phone.

It has it's own area by combining the PSP and touch screen experience with a phone that has a ton of apps, the ability to watch videos and play music. Comparing this to a DS is like saying a 20 inch 1960s TV is the same thing as a 50 inch LED LCD TV....they're both meant to be mobile gaming devices, but that's where the similarities end.

Yes, the iPhones and iPods have a big market gain, but the android OS market is gaining a strong foothold. With the PSP running 2.3 of the droid OS, well see alot more games being developed for the droids, and that playing field will even out.

On a side note, I love when Apple and Nintendo fan boys spew out things they have no clue about and fail to mention he hard facts.

Handhelds haven't changed

Handhelds haven't changed much since the original Game Boy. They're basically screens with tiny speakers and buttons that play games, and smartphones are becoming powerful enough to run games with the same graphical quality.

In the future, gaming handhelds will need to do something smartphones can't (like the 3DS), or they'll be obsolete.

not really... a smart phone

not really... a smart phone has to pack a lot more things into (preferable) an even smaller package than a handheld console. as well as run more background tasks. one day maybe handheld consoles and phones will merge but not for many years. as no the best smart phones can not run anything even close to what a dedicated handheld can do. remember dedicated is ALWAYS better. since it only needs to do 1 thing well, a smart phone for example needs to do many things will games is not one one them.

also smartphones may be getting somewhat close in graphics quality BUT definatly not in length as that requires either a really huge internal memory/memory card like an sd card and relys on on downloads. OR a cartrage/disk system either of which would increase cost(a large enough/enough sd cards costs the buyer) and or size of the phone

That little tetris comment

That little tetris comment really doesnt mean anything, because people dont buy a psp or ds for ultra simple games like tetris, they buy them for the quality worthwhile games that come out for them. There arent many DS quality games on the iphone. lots of "throw the ball" games but im sorry thats just lame.

"We're starting to see DS

"We're starting to see DS hardware sales crack, I think the ubiquity of the iPod Touch"

um what? the ipod touch has no where near the same number/quality of games as a dedicated handhel console. I also wouldn't consider anything about that pos 'quality'

"What's the difference if you play Tetris on an iPod Touch or on a DS"

earlier case in point theres a hell of a lot more than just tetris and shitty games that are basicly flash web games.

oh and guess what ipod, I have a touch screen mp3 player, it can play games too, its games are FREE

Maybe someday.

Gaming on an iPod is akin to playing crappy little flash games. I've taken mine as far as it can go, and it's a great little device. But an awesome game platform, it isn't. At least not yet.

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