The first time I heard about the PSP Go, I wondered if most of us were ready for a dedicated game system that lacks a physical software format. Sure, that is basically what the iPhone and iPod touch are, but I don't really think of those devices and the PSP Go as being in the same category.
The big rub for game retailers with a device like the PSP Go is that without software, there is nothing for them to make money on after the initial sale of the device. Secondary software sales are often where the stores make more money than on the hardware itself. One Dutch game retailer -- Nedgame -- has reportedly refused to carry the PSP Go because the game lacks a physical software medium where it can make some money.
The company also reportedly cited the high price of the device as a reason for not stocking it. The console will sell in the region for EUR 249 compared to the PSP 3000 EUR 169 price. Nedgame also reports a problem with the fact that Sony is setting up a pricing monopoly for PSP Go games. It will be interesting to see if other retailers in Europe and America feel the same way about the PSP Go.