The Manchester City defender turned 24 last month, making him one of the older squad members and the boss suggested he will play in the centre of defence during the Games
The defender has been included in the Olympic squad as one of the three designated players that are allowed to be over the age of 23, along with Welsh duo Ryan Giggs and Craig Bellamy.
The choice was met with surprise from some quarters after the Manchester City man snubbed Roy Hodgson by refusing to be placed on the Euro 2012 squad stand-by list earlier this summer.
Other critics called for David Beckham to be called up after he helped with London's successful bid, and has since been an ambassador for the Games.
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"It's a shame with Micah Richards that he's an overage pick," Pearce told reporters.
"He misses out on being an underage player by a few months."
The former interim England manager, and current u-21 coach, then indicated that the player will take up a role in the centre of defence rather than on the right as he has done for his club.
He added: "I see him playing at centre-back than at full-back to be honest."