[quote name='Alpha2']If apple can keep selling 20gb iPods for close to 400 bucks then Sony can get away with selling the PSP for 250, there's no end to the number of people that will continue th puy it as long as it's available, it'll just take them longer to buy it than a DS or GBA.[/QUOTE]
This statement is rather inaccurate. There have been a few nods to Apple and the iPod, pointing to the lack of price drops but the increasing sales. However, Apple does not keep selling the same old iPod for the same price. In its four generations, the iPod has gotten significantly slimmer and has a refined interface and improved feature set. Also, the capacity has increased dramatically. Right now, I can buy a 20 GB iPod for $299. Two years ago, when I purchased my iPod, it cost $299 for 10 GB. Also, items thrown in now, such as USB connectors, weren't part of the standard package prior to the fourth generation. Apple appears to have kept the same product at the same price, but that's because after the newer, better generation of iPods are released, the old ones cease to exist. The only example of an iPod model which stayed the same is the iPod photo. Originally, a 40GB and 60GB iPod photo cost $499 and $599 respectively (or at least around those prices). Now, a 30GB iPod photo costs $349 and the 60GB iPod photo costs $449. In the latter case, the 60GB iPod photo, the price reduced significantly and the package remained the same.
If Sony can follow this model and improve the PSP each year to year and a half by doing things such as providing a higher capacity memory stick in the value pack or using a better, longer lasting battery pack, then I would understand keeping the $250 price point...almost. However, I am fairly certain that this is not Sony's plan.
Then again, I'm hoping Sony doesn't stick to this model for long.