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Your email address will not be published.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 655: QuebecoisEpisode 655: Quebecois

Ce podcast n’est pas parlé en français. Ce n’est même pas en français canadien. Désolé, nous ne vivons pas à Montréal. Les gars se moquent du gouvernement du Québec pour leur peur provinciale de l’anglais et blâment tout sur la langue.

L’épisode de cette semaine comprend les nouvelles suivantes:

  • L’industrie québécoise du jeu vidéo sera impactée par une loi linguistique controversée
  • RimWorld: Console Edition arrive sur PS4, Xbox One le 29 juillet
  • Samsung Gaming Hub est officiellement lancé

Il y a aussi des retours d’auditeurs. Dites-nous ce que vous en pensez.

Episode 325: Civilized PodcastEpisode 325: Civilized Podcast

This week’s podcast has Dan Quick filling in for an ailing Jordan Lund, while Civilization V inevitably comes up in conversation with the Polycast host with Jonah Falcon. There’s no Gaming History or Gaming Flashback, but tons of news items.

The news includes:

  • Andrew Wilson named Electronic Arts CEO
  • PlayStation Vita TV announced
  • Sega buys Atlus for 14 billion yen
  • Star Trek video game “big disappointment” to J.J. Abrams
  • Chair on Shadow Complex 2: Fans “don’t want it more than we do”
  • Steam adopts Xbox One’s former family sharing program
  • Diablo III auction house closing in March 2014

There’s also some Listener Feedback from the T-shirt winning contestant.

Episode 452: Goodbye Princess Leia, Hello 2017Episode 452: Goodbye Princess Leia, Hello 2017

The year has ended, as the last podcast of 2016 was recorded last week, and released today. There’s much discussion that was cut out and saved for a future outtakes episode. Regardless, there’s plenty of show to go around, and the sound quality is also far better than ever thanks to Jonah getting a professional headset and mic.

This week’s news includes:

  • Nintendo registers trademark that could point to a SNES Classic Edition
  • Windows 10 may be getting a new “Game Mode” option
  • The next game by That Dragon, Cancer‘s dev is not what you’d expect

This week’s Question of the Week is “What game in 2017 might you buy that you normally wouldn’t?”