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Your email address will not be published.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 446: Free-For-All EditionEpisode 446: Free-For-All Edition

This week’s edition is a little different, in that there’s no set format, just a roundtable discussion of the past week’s events. TJ raves about Owl Boy, Jonah talks about N7 Day and the new Mass Effect: Andromeda revelations, and everyone on the podcast discusses how games have really been a disappointment this year and not much is coming. Oh, and a $99 3DS coming for Black Friday.

Let us know what you think.

Episode 442: RPGs And StuffEpisode 442: RPGs And Stuff

This week’s episode is full of computer roleplaying game goodness, as well as some of the disbelief of a Nintendo-owned Harry Potter franchise. All that and Civilization VI and Turok excitement to boot.

The news includes:

  • Wasteland 3 multiplayer details revealed in new Fig update
  • Civilization VI offers multiple leaders for each civilization
  • Turok 2 remake ‘is coming‘ according to Nightdive Studios
  • Nintendo wanted to buy the rights to Harry Potter in the 1990s

Let us know what you think.