The PSP Go will be hitting shelves all over the world on October 1st, except at major Dutch retailer Nedgame. They have told Eurogamer that they will not be stocking and selling the PSP Go.

But why? Nedgame pointed out there is little incentive for them to sell it, since there are no physical games for the PSP Go. This cute little guy is a digital distribution only. Profit margins are very slim on consoles and most of game retailers profits come from selling video games and accessories. And at 249.99 EUR (which is approximately $366 US), it’s far too expensive of a risk.

Nedgame is not alone in their refusal to stock PSP Go’s in October, Eurogamer reports that other Dutch retailers, and retailers in Spain will be doing the same thing.

SCEE President Andrew House said in an interview earlier this summer that the costly hardware isn’t meant to appease retail giants or recoup research and development costs. “Those aren’t the factors,” he said. “When you introduce a new piece of hardware you have the opportunity to say there is a certain premium that is associated with it, and we took that into account. As with all hardware launches you look at the business model, the cost structure, and the necessarily level of profitability, and you use that to set the wholesale price.”

The PSP Go memory should be able to hold 17-18 games in its 16GB HDD, without having to add extra storage (one can add extra memory sticks). The average size of a game download for the PSP Go will be around 600-800MB.It will run for $249.99 in the US and will be released on Thursday, October 1st in both black and white colors.