PlayStation 3: Not About Quantity, About Profitability

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”

Leave a Reply

Your email address will not be published.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

Related Post

Episode 250: Do the Time Warp AgainEpisode 250: Do the Time Warp Again

It’s the fabulous 250th Episode milestone, and this particular podcast features a major surprise for longtime listeners. Not only is this one of the funniest podcasts in a long while, but there’s plenty of show to go around, too. First, the Gaming Flashback checks out the classic shooter No One Lives Forever, while the Gaming History examines the infamous Gizmondo handheld gaming console.

As for the news:

  • Hirai: Sony could be facing “serious trouble
  • Take Two CEO states “strong become stronger” with next-gen transitions
  • Developer Starbreeze fears Syndicate may be “too hard
  • Oklahoma state rep wants 1% violent videogame tax
  • Ubisoft cuts off legit players With DRM server migration

There’s no Question of the Week, but we’re definitely sure there will be plenty of comments for the podcast hosts.

Guitar Hero: Aerosmith Hit’s the ShelvesGuitar Hero: Aerosmith Hit’s the Shelves

Guitar Hero: Aerosmith is out, gamers rejoyce. Reviews show the game being “so so” in terms of value and total experiences. GameSpot gave it a 7.0 out of 10 saying it’s a bit short, 41 songs instead of the typical 70+ from other Guitar Hero games… but you’re still paying full price.

They’re also saying Guitar Hero: Aerosmith is easier, which is great for the non-hardcore players. For those uberskills shown off in so many youtube video’s, you’ll probably wanna stick to Guitar Hero III. IGN ranked it a 7.6 out of 10, with much of the same issues as other review sites have found: lots of “the same” in this title only with Aerosmith songs instead of a variety, a bit easy and only attractive to those that like Aerosmith.

If you’re a huge Aerosmith fan, this game goes without saying. If you’re looking for additional guitar tracks to rock out on, again, not a bad selection. If you’re looking for the next great rock and role gaming experience, this isn’t worth the cash it seems.

(more…)

Episode 404: Rebel ScumEpisode 404: Rebel Scum

This week’s episode is a little late thanks to unforeseen circumstances, but nothing will stop us from posting new episodes. It’s actually one day late, since last week was a week off, thanks to Podbean limits and Halloween. On that note, this week, Jonah had to erase a spoiler segment about The Force Awakens, but enough remains of the convo discussing other parts of the upcoming movie.

This week’s news:

  • Sony not to offer backwards compatibility
  • Advertising Standards Authority rules Valve misled customers with Grand Theft Auto V Steam Sale
  • The Witcher movie slated for 2017
  • Ubisoft admits poor Syndicate sales are due to franchise fatigue caused by Unity
  • World of Warcraft paid subscribers at a nine year low at 5.5M

The Question of the Week is what we usually ask ourselves, but with all the new games coming out, “What have you been playing this week?”