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Your email address will not be published.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 526: New York State of MindEpisode 526: New York State of Mind

This week’s episode of Gaming Podcast features the first news of 2019 for the podcast, and there’s some juicy items to discuss. There’s no Gaming Flashback, but there is more discussion of the latest Civilization VI: Gathering Storm civs to be discussed.

The news includes:

  • “Exciting Halo: The Master Chief Collection news” teased for SXSW 2019
  • EA cancels open-world Star Wars game
  • Pillars of Eternity 2: Deadfire is getting turn-based combat later this week

Let us know what you think.

Episode 646: Late April Fool’sEpisode 646: Late April Fool’s

[This episode has been re-uploaded due to technical issues]

This week’s episode deals with the fact it was published on April Fool’s Fool’s Day, and discussion of the games that have been floating the hosts’ boats. This week’s Gaming Flashback is the magnum opus of Telltale Games: The Walking Dead. The guys also discuss the upcoming Kingdom Hearts 4 and whether anyone cares about it.

The news includes:

  • Digital games on PS3 and Vita are reportedly “expiring” and becoming unplayable
  • Ubisoft ends its NFT experiment in Ghost Recon Breakpoint
  • Konami details eFootball 2022 v1.0 update due next week
  • Blue Box: Abandoned has not been canceled

Let us know what you think.

Episode 591: The PS5 Is HotEpisode 591: The PS5 Is Hot

This week’s episode has only two official news items, but there’s a lot to discuss that didn’t quite make the list, including Sony’s controversial plan to update the fan speed on the fly by taking data from consoles already purchased, to the beautiful Ori Collector’s Edition bundle. This week’s Gaming Flashback: The Legend of Zelda: Twilight Princess.

The news includes:

  • Phasmophobia updates will make ghosts smarter and less predictable
  • 2K under fire for adding unskippable in-game ads to the full-price NBA 2K21 a month after release

Let us know what you think.