PlayStation 3: Not About Quantity, About Profitability

July 11, 2008July 11, 2008| schommerschommer| 0 Comment| 2:22 pm
Categories:

The Xbox 360 price drop rumors flow like water and it’s all but officially been announced at this point. What about PlayStation 3 and their price? No.

Nobuyuki Oneda, the Sony’s chief financial officer said, “our plan is not to reduce the price. Our strategy is not to sell more quantity for PS3 but to concentrate on profitability.” (gamespot) This makes complete sense coming from their chief financial officer, as their motivation is to make money, not lose it.

The question remains, how will they actually make money if they’re no longer in the race for competitive market prices? Considering game licensing must Net them some amount of profit Sony’s idea seems to be the exact opposite of their original PlayStation method: saturate the market and sell them all games.

So far we’ve seen very few “need to have” games for the PlayStation 3 console while Xbox 360 continues to build a substantial library and Wii continues to break sales records for apparently no reason. When a game publisher has to decide on a platform to launch a new game, why would they choose the one that doesn’t care to be competitively priced in the market? The one that doesn’t care about quantity of sales?

Sony intends to reverse the entire razor blade philosophy where one sells a cheap razor and charges users for the blades over and over again. Their take on this concept is to sell really expensive razors and put out small half-quality blades. Is that a good market strategy at this point?

0 thoughts on “PlayStation 3: Not About Quantity, About Profitability”

  1. Pingback: Final Fantasy XIII - Xbox 360 | Gaming Podcast

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Retro Gaming: Mega Man 9 Get’s Flicker and BugsRetro Gaming: Mega Man 9 Get’s Flicker and Bugs

Capcom isn’t fooling around, they know their market for Mega Man 9 on Xbox Live, WiiWare and PSN and its nostalgic gamers with a desire to be a kid again. Any retro gamer will tell you the old school experience must include some pixel flickers, slow down and 8-bit style bugs.

They have decided to include an optional feature to enable old school bugs on purpose. The limitations of early hardware like the NES caused situations where you would only see a limited number of creatures on the screen at any one time else things slowed down, flickered and got undesirable fast. What used to be undesired is now nostalgic!

“Yeah, there were some things, like you couldn’t have more than three enemies on the screen at once, so we had to make sure that that’s how it stayed in our game. In the part with the dragon with the flame, [there should be] flickering, and whatnot,” noted the game’s producer. “In the options of this game, you can adjust that, unlike the old games. We purposely put some of those old-school bugs into this game, so it does recreate that feel.” (joystiq)

Luckily these options are disabled and can be enabled to get a bit of old world feel if your little heart desires. For most of us, we should have moved on from the old times and are ready to play old school games on new school hardware to show off a bit more fluid 8-bit logic. Not so for everyone, which is why the feature was added as an optional one.

Staying true to old school computing in an emulator is extremely important when playing old ROM games because the game was coded with a certain speed and understanding of the hardware. Change the hardware without updating the game can lead to an unusable product. Mega Man 9, however, is a new game so it doesn’t have to adhere to old standards. But, it’s funny to see it try.

Read MoreRead More

Episode 484: Letters!Episode 484: Letters!

This week’s podcast was delayed in publishing thanks to the holiday week being more hectic than usual. However, better late than never, and there’s even some listener feedback included!

The news items include:

  • Valkyria Chronicles 4 is mobilizing for deployment in the west in 2018
  • Clicker Heroes 2 developer abandons microtransaction model citing ethical concerns
  • Rainbow Six Siege is getting a high-tech ninja named Vigil
  • Minecraft is adding tridents, shipwrecks, dolphins and coral reefs in Spring 2018

Let us know what you think.

Read MoreRead More

Microsoft To Indulge on Hype at E3 2009Microsoft To Indulge on Hype at E3 2009

This year’s E3 should be interesting as we head back to the no holds barred approach to gaming conferences. While E3 tried to go all PG for the last few years, it’s time to get back to the serious business of hype-o-rama. Microsoft’s on board with it and plans to “break the bank” in terms of hypesville.

Microsoft Game Studio’s producer Phil Spencer said:

“[It’s] very exciting, because there’s a lot of stuff on the docket and maybe we’ll break the bank a little bit and talk about things that are further out, which will hopefully get the community excited.”

Microsoft continues to hammer home big announcements at the E3 events even while in the ho-hum lull of the past few E3 events. Last year they nailed Sony with the Final Fantasy XIII announcement and hyped up the New Xbox Experience. What are they going to pull out this year now that we’ve seen Gears of War 2 and have a pulse on some of their Halo ideas?

They’re talking about hyping games further down the pipeline, perhaps to keep people jazzed about what the future holds even in these economic down times. It’s important to keep gamers focused on what is to arrive on the 360 so they don’t sway towards the opposing consoles in moments of doubt.

Of course, this begs the question, will Sony pull out even more hype? Will Nintendo continue to give mediocre showings with “I told you so” sprinkled in their message? Only time will tell.

(Thanks, Eurogamer)

Read MoreRead More