Sony May Outsource PSP Production
SCE president Ken Kutaragi has confirmed that PSP production may be outsourced to another company, as demand for the PSP is already outstripping Sony's ability to produce. GamesIndustry.biz has the story, which points out that the handheld console is still not released in Europe, an event anticipated in early September. From the article: "At present, there is only one factory producing PSP consoles - the Kisarazu facility east of Tokyo, which manufactures around one million units per month. Sony has previously announced plans to double this figure by the summer as it continues the fight to compete with Nintendo."
To those who think the PSP isn't selling a million units a month, I think you may want to check your facts first. Not only is the PSP selling like hotcakes even at the $250 price point, but the Nintendo DS is essentially dead in the water as far as sales go. The software library for the DS is pitiful and there are more titles for the PSP, which has been out for two months, than there are for the DS (which has been out for seven months). And the quality of titles for PSP is much greater. Nintendo is largely out of touch with what the market wants, despite all of their hubbub about what they think is going to sell.
I don't think it is necessary to outsource the PSP. If demand continues like this, they can keep the price at $250 much longer and sell more units. When demand starts to drop, just lower the price a little. Demand is not at such a high level as to justify a second factory without it oversaturating the market.