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?

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Call of Duty: World at War Beta – Coming SoonCall of Duty: World at War Beta – Coming Soon

I don’t know anyone that can’t pass up a good beta, Call of Duty: World at War is no exception to the rule, especially for those gamers that pre-ordered the title already. It’s a great opportunity when you’re able to buy a game ahead of time because you’re a fan and get into the beta early.

Santa Monica, CA – October 13, 2008 – The dogs of war are being unleashed today, as Activision Publishing, Inc. (Nasdaq: ATVI) and developer Treyarch announced the launch of the multiplayer beta for Call of Duty: World at War on the Xbox 360® video game and entertainment system from Microsoft.  Console players can guarantee themselves a token by pre-ordering the game at North American GameStop retail locations,* or online at http://www.gamestop.com/Catalog/ProductDetails.aspx?product_id=71812. Call of Duty fans that register to become members at www.callofduty.com are also eligible to receive a token, but these tokens are limited in supply, so register today.  Windows PC fans can expect a multiplayer beta soon.  For more information about either beta and the opportunity to secure a beta token or key, fans can also visit www.callofduty.com/beta.

The Call of Duty: World at War multiplayer betas will provide players with an opportunity to play as U.S. Marines, German Wehrmacht, Japanese Imperial Army and Russian Red Army factions in a variety of game types (Team Death Match, Free-For-All, Capture the Flag and War), across three different maps:

  • Castle: The Imperial Japanese Army faces off against the Marine Raiders in a daytime battle, located on the grounds of an ancient, Japanese castle.
  • Makin: The U.S. Marine Raiders square off against the Imperial Japanese Army in a nighttime fight, set in an outpost on the Makin Atoll in the Pacific.
  • Roundhouse: The Wehrmact will fight the Red Army to the bitter end in a daytime struggle that features tank and infantry combat, set in a desolate, war-torn European train depot.

The betas will last for a few weeks; however, the full battle will commence on November 11, 2008 when Call of Duty: World at War is released to retailers nationwide.

Call of Duty: World at War is in development for the Xbox 360® video game and entertainment system from Microsoft, Games for Windows®, PLAYSTATION®3 computer entertainment system, Nintendo® Wii™ and Nintendo DS. The title has been rated M for Mature for blood and violence by the ESRB. The Nintendo DS version has been rated T for Teen by the ESRB.

For more information and exclusive updates about Call of Duty: World at War, visit www.callofduty.com

About Activision Publishing, Inc.
Headquartered in Santa Monica, California, Activision, Publishing, Inc. is a leading worldwide developer, publisher and distributor of interactive entertainment and leisure products.

Activision maintains operations in the U.S., Canada, the United Kingdom, France, Germany, Ireland, Italy, Sweden, Spain, the Netherlands, Australia, Japan and South Korea.  More information about Activision Publishing and its products can be found on the company’s website, www.activision.com.

Episode 434: Windows IssuesEpisode 434: Windows Issues

This week’s episode was delayed due to serious Windows issues this past week. The episode was saved, however, and is 90 minutes full of discussion. The podcast deals with a lot of console hardware rumors.

The news items include:

  • Rumor: PS4 Neo being unveiled in early September
  • Nintendo NX launch and spec details leak
  • Before you play Dishonored 2, you should finish the first game’s DLC says Arkane

All this and Listener Feedback.

Sony Says Competition is GoodSony Says Competition is Good

It seems the console maker who’s trailing in sales typically says how great competition is and how it’s great for the consumer. Sony’s not leading the console race, as of now, and Sony Computer Entertainment Europe president David Reeves stated in a recent interview:

The winner, he said, is the consumer. “That’s why we are not going to slag off Microsoft or Nintendo at all,” he said, “because again it’s rather like the trainer market: one year it’s Reebok, next year it’s Nike, and then suddenly it’s Adidas; it’s cyclical, but in the end everyone wins in five to ten years.”

Sony continues to speak towards their “10 year plan” and how they’re increasing momentum in the market. They’re not winning in sales but with a ten years to go, this is just the beginning. Had this statement come from Microsoft it would be a chance to worry, but Sony has proof to backup their statements.

The PlayStation 2 is going strong as a nine year-old and doesn’t seem to be letting up in game releases. Sony’s press conferences always cover the PlayStation 2 in their talks with the PSP and PlayStation 3 for three big reasons: it’s worth bragging about, it distracts from lower PS3 sales and it separates them from the competition.

Where is the GameCube or classic Xbox in Nintendo and Microsoft’s press conferences and number crunch reports? The fact is, the companies have given up on both products retiring them as “last generation” (translation: poor sales). What better reason to buy a PlayStation 3 than knowing the company is in the game for the long haul?

It might be bit cheaper to buy an Xbox 360 but who’s to say Microsoft isn’t going to announce their next generation console tomorrow and kill off the Xbox 360? Obviously, Microsoft will deny those claims but there will always be doubt without a proven track record.

On the other hand, Microsoft hasn’t seen the success in the classic Xbox and Nintendo hasn’t seen nearly the fervor over the GameCube as compared to their current generation consoles. So, that begs the question, why would they halt all that for new console announcements?

Until they’ve had more time in the market, we cannot be 100% certain what Nintendo and Microsoft are going to do when it comes to next-generation announcements while Sony’s been very clear in each press conference. As Kaz Hirai said to Eurogamer earlier:

“We certainly don’t do the consumer the disservice of basically saying that the consoles have gone by the wayside because we have a new one. Right now, a prime example? PS2 is nine years into it. Where’s the Xbox? Where’s the GameCube?”

If one console maker is looking for a way to stand out and explain their slow sales figures, Sony’s got the PS2 and its long history in their back pocket.

Now, if we could only get those game designers to continue to take it seriously and not put all their eggs into the PS3 basket.