Launching PSP: Game Rush’s Frederick Jones On Hardware, Software, and the Nintendo DS

by Louis Bedigian

 

“The PSP and its unique features will sell itself.”

 

 

At 12:01 am, thousands of gamers across the country got their first chance to purchase Sony’s first entry into the portable gaming market, PSP.  They lined up in front of Media Play, EBgames, GameStop – anywhere that guaranteed a midnight opening.  Best Buy opened two hours early in many locations.  Game Rush, the video game offshoot of Blockbuster Video, closed two hours later than normal in order to be one of the first to sell their PSP units.

 

All you have to do is touch it, feel it, and experience the console’s unbeatable games.  All you have to do is realize that this is the portable version of the world’s greatest console, PlayStation 2, to be sold.

 

 

Wipeout Pure earned a much-deserved overall rating of 9.5. 

 

PSP is a portable revolution.  We know this.  Our readers know this.  But what will happen now that people can finally purchase it?  What will happen now that the hype has to be turned into reality?  Frederick Jones, Retail Games Buyer for Game Rush and Blockbuster Video, believes that the PSP could make this year even more exciting than the last.

 

We spoke to Frederick just before the launch to see where Game Rush stands, how the games are selling, what the future holds, and more.

 

 

Anticipation for the PSP continues to multiply.  Do you expect this to be a record-breaking launch for a portable console?

 

Frederick Jones:  Without question. What Sony has crafted is akin to the iPod in that the PSP is a highly stylized and heavily marketed lifestyle piece as much as it is a video game device. The PSP will help transcend movies, gaming and music into one neat package and that sort of convergence is the hottest trend right now in consumer product choices.

 

What are Game Rush's sales expectations for the console?  Are you planning on an immediate sell-out?

 

FJ: Game Rush has worked very hard internally and with Sony to create what we feel is an incredible choice of unique PSP products that includes both rental and retail options. With our enhanced marketing support, which has included in-store POP (point of purchase), print ads and a weekend FSI, we believe we will have one of the fastest selling product launches in the history of our Game Rush stores.  This will be no mean feat considering our tremendous success with the Halo 2 launch back in November 2004.

 

Game Rush had a hard time replenishing their stock of PlayStation 2 units last year – how do you plan to tackle the stock issue with PSP?

 

FJ: Honestly, if you look at the video game market as a whole, EVERYONE was affected by the shortage of PlayStation 2 hardware units. No retailer was immune to the great season the video game industry experienced last Christmas including Game Rush. We are very proud of the tremendous growth we’ve seen in our hardware business, and we are certainly aware of the frustration that shortages cause our growing customer base.  We are working very closely with Sony to make sure that we are addressing allocation needs in line with their production capacity. Over time, we feel that we will be able to offer our customers a steady release of PSP hardware as it becomes available.

 

How many pre-orders have you taken thus far?  How many PSP units has Sony promised Game Rush for launch?

 

FJ: Our pre-order program is really heating up. I cannot give exact numbers but what I can say is that we started pre-selling the unit late in January 2005 whereas many of our competitors began pre-sales during the fourth quarter of 2004. Demand for the hardware has exceeded our expectations, and frankly, we're sending a bigger portion of the initial allocation to stores than we had initially planned. 

 

“Gorgeous graphics, solid gameplay, and a wonderful audio track make this version of Spider-Man 2 a winner.”—Michael Lafferty 

 

What if I can't make up my mind and decide not to pre-order a PSP, but then I decide I want one on March 24th? Will I be able to walk into a Game Rush store and buy one?

 

FJ: Game Rush would love to be able to guarantee a unit for every customer that wants one. We honestly feel that out of all the retailers carrying PSP hardware and supplemental products that we are the best one slated to give the customer everything they're looking for in this category. That being said, this portable is simply one of the hottest consumer entertainment products to come out in a long while.  All we can do is hope that the customers who are seeking us out come early enough on March 24 to their local Game Rush store for the best chance to get a unit. While we can't promise every customer a PSP we can guarantee a fantastic experience for the PSP or gaming customer.

 

Roughly how many units will each individual store have to sell on the 24th?

 

FJ: Again, we can’t speak to specific numbers, but rest assured, each store will have a healthy assortment of accessories (both unique and exclusive product to Game Rush) as well as software to rent or buy to go along with a hardware purchase.

 

In regards to software, how many games are people pre-ordering per pre-ordered console?

 

FJ: Each of our Game Rush markets is different, and therefore makes this question difficult to comment on.  If I had to guess based on initial numbers, it seems like we are attaching at least one unit of pre-sale software for every hardware pre-sale.  This is in line with most hardware launch attach rates. We expect to sell many units of products (memory cards, software and other accessories) on and after the PSP's release date.

 

Which game(s) have received the most pre-orders?  Which ones have received the least?

 

FJ: We're not prepared to release that information right now as it's not really a competition. In general, the bigger a title's franchise and marketing, generally the bigger the initial sales.  It would be unfair to some of the newer, less established titles to speak about their performance this early in the sales cycle. What I can say is that the software has gotten some fantastic responses from our customers upon seeing initial in-store POP.  Several stores have sold out of initial allocations of titles they received early like Need For Speed Underground Rivals. We are immediately restocking those stores.

 

Could you give us a list of the top three pre-ordered games?

 

FJ: At this time, we do not have final sales information in from the weekend but it seemed that Need For Speed Underground Rivals, Metal Gear Acid and Wipeout Pure were doing very well. I've also seen lots of interest on a consumer level for Untold Legends: Brotherhood of the Blade and Twisted Metal: Head-On.

 

 

Twisted Metal: Head-On is easily the best vehicular combat game released since the series hit PS2.

 

 

What has been Game Rush's experience with gamers thus far: are they educated?  Do they come in, knowing exactly what the PSP is and which games they want for it?  Or do they ask a lot of questions about the device, what it does, and what games are expected to be released at

launch?

 

FJ: The great thing about Game Rush is that it speaks to a variety of customers. I know that when we created the Game Rush brand one of the primary concerns was creating a consumer experience that was relevant for the hardcore gamers while being accessible to the mainstream gamers. We have aggressive POP and a wide variety of titles to rent or buy for the hardcore gamers who want to experience everything.

 

On the other hand, we have interactive units and true gamers who are our dedicated customer service reps to assist in answering all questions from gamers young and old. To that end, Game Rush has a unique position in the marketplace. We are growing the pool of gamers by bringing in more non-gamers who become hardcore gamers thanks to their experiences with Game Rush. Combined with Sony's pre-hype for PSP I've been very happy with the customer awareness level of the unit both as a game system and movie playing device as well as our own ability to make customers understand the versatility of the unit and why they should own one.

 

Nintendo targeted teens and adults with the Nintendo DS and they seem to have reached that market fairly well.  Which age group(s) have expressed the most interest in PSP?

 

FJ: It seems to be across the board really. We haven't conducted a poll of the age groups for PSP but based on price and our past experiences it seems that the PSP will continue the Sony brand strategy of 18-34 year old males as a primary target and go outward from there for the secondary market.

 

Game Boy Advance games retail for no more than $35, and in most cases you can get 'em on sale for $25 or less the week they're released. Nintendo DS games don't cost much more.  Most PSP games, however, retail for $50.  Do you think there are gamers who will be turned off by this price point, especially when they can get brand-new PS2 games for $40?

 

FJ: It's too early to tell on the effect of Sony's pricing strategy. When Apple launched iTunes many balked at $.99 cent songs and a $250-$300 player. Now look at their marketshare. All in all, I would say that our customers will be in a great position to enhance their PSP gameplay. When you look at the opportunity for gamers to rent all of the launch games for PSP, coupled with the best trade-in prices and our diverse pre-owned software selection, gamers should be able to enjoy a diversity of PSP titles and/or accessories in Game Rush without breaking their wallets. 

 

World Tour Soccer is a surprising sports game that’ll have everyone cheering. 

 

What was your reaction to Sony's announcement of the PSP Value Pack? Surprised? Disappointed?  We all need a memory stick, but they're making us pay $250 for a console that sells for $190 in Japan, whether we want the extra goodies or not.

 

FJ: I'm not sure I had a reaction about it other than "Finally!"  LOL. It was quite a while before Sony released any information on the North American launch so at that point, any news was good news. That being said, the unit seems worth the $250 and Sony did a great job of customizing the launch for US audiences. Let's not forget the cleaning rag, demo disk, memory stick, headphones and Spider-Man 2 UMD would probably set you back an additional $75 dollars alone. The PSP and its unique features will sell itself at the start. Game Rush has created enough unique accessories with partners like Hip, Pelican and Dreamgear to provide additional value for the customer who buy one but wants accessories that help differentiate each gamer in their respective gameplaying circles.

 

Moving onto the topic of competition, who has the edge at launch: PSP or Nintendo DS?  Who has the edge in the long-term?

 

FJ: That's difficult to say. Both units have an amazing pedigree behind them and a commitment to grow this market from where it has been these last 10 years. It would be easy to say Sony – given their PS2 sales and brand name – but one thing I've learned in my years in the business is to not count out Nintendo. They always have a surprise in them. That said, it will be an interesting contest and we think there will likely be room for both, particularly since both units stress unique elements that are specific to their platforms.

 

What are your sales expectations for the Nintendo DS once the PSP arrives?

 

FJ: The DS has been a very strong platform for Game Rush since its launch back in Q4 2004. While we expect there to be some erosion of sales as it loses its 'new kid on the block' status, the truth of the matter is that the product continues to sell very well for us. I anticipate Nintendo will be making some announcements soon on new exciting software that can drive new awareness to the platform.

 

Nintendo recently increased their sales expectations for the Nintendo DS units but decreased their expectations for game sales.  Any thoughts as to why they would do this?

 

FJ: Nintendo DS really speaks to a unique audience.  It has the proven Nintendo brand which means family entertainment, yet it also has the hip high-tech feel of the DS when you factor in Pictochat, Dual screens and Wi-Fi connectivity. While the hardware will continue to compete with the launch of the PSP due to price, the software on the other hand has a tougher challenge as they are going to have to compete against an onslaught of major third-party PSP titles like Grand Theft Auto and NBA Street. This will cause their limited software options to work harder than if Sony had a smaller lineup of titles for PSP. Time will tell. 

 

Watch out competitors: Grand Theft Auto is on its way!

(Screenshot from PS2 version of San Andreas)

 

 

Going forward to Christmas, which portable console (PSP or Nintendo DS) will be the must-have hit of the holiday?  Which console will come out swinging with the strongest holiday game lineup?

 

FJ: Well, we certainly hope that Nintendo and Sony both have success in this portable arena. We're not an advocate of any system over any other because at Game Rush, we feel that when each company is successful everyone benefits. At this time it's difficult to say what the fourth quarter has planned for all of us. We expect both Nintendo and Sony to announce some very exciting plans around this year’s E3 timeframe. Last year's fourth quarter was an absolutely amazing one for the industry with the PS2, Halo 2 and Grand Theft Auto leading the charge. We feel that this year's fourth quarter has an equally strong chance and may be even more exciting with PSP, NDS and the next Xbox system.  We are thrilled to bring that excitement to our customers across all Game Rush stores.

 

I’d love to ask a few more questions, but I MUST get back to my PSP!

 

Thank you for your time, Frederick.