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Analyst: NGP To 'Handsomely Surpass' PSP In North America

Analyst: NGP To 'Handsomely Surpass' PSP In North America

February 3, 2011 | By Leigh Alexander

February 3, 2011 | By Leigh Alexander
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Sony's upcoming Next Generation Portable is following on the widepsread success of the PSP in Japan. But the PSP's struggle to gain traction in North America may impact the NGP's prospects on Western shores, according to one analyst.

"In Japan the PSP currently has the second largest active install base and is on track to become the fifth bestselling home or portable console of all time in that country," points out EEDAR's Jesse Divnich. "The key to the NGP's success, however, will come down to the adoption rates in the much larger North American and European markets."

The PSP's install base is currently 22 million units in North America and 28 million units in Europe -- which, according to EEDAR, means the bar for success isn't very high: "EEDAR expects the NGP to handsomely surpass sales of its predecessor, the PSP," writes Divnich.

Part of this, in his view, depends on a few caveats, first among them is that the NGP "is competitively priced." Naturally, long-term support from third-party publishers producing compelling original content for the device and adequate retail space and supply are also factors.

"Observers tend to forget that the PSP was incredibly successful at launch in [North America], selling more units in its first year than the Nintendo DS," he reminds.

"Long‐term, however, concerns about Sony's digital strategy, lack of publisher incentive and piracy, ultimately resulted in a decreasing support from third‐party publishers and a reduction in retail shelf space," adds Divnich. "EEDAR believes that the aforementioned problems of the PSP era will be resolved with the NGP."


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