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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Final Fantasy XIII Not Simultanious EverywhereFinal Fantasy XIII Not Simultanious Everywhere

It seems the promise of Final Fantasy XIII on the Xbox 360 is a big “work in progress” as it’s not actually under development yet. Square Enix is fully ready to commit on a simultaneous release for Europe and North America but not every territory around the globe.

The reason is simple: there are just too many countries to perform language translations in the time of a release window. Final Fantasy, as many know, is very text heavy in terms of dialog and storyline. We’ve spoke at length about that in the gaming podcast which helps explain why certain countries get some releases of Final Fantasy at different times and why some sequels never make it out of Japan.

“We’re ready to start developing FFXIII for 360,” said Square Enix’s Shinji Hashimoto. “First, we will complete the game for PS3 in Japan, then begin localization for America and Europe while developing the 360 version simultaneously. The PS3 and 360 versions will be released at the same time outside of Japan — although, due to language and other conditions, the game may not be released simultaneously across territories.” (1up)

Their plan of attack seems solid and gives the PlayStation 3 a bit of an advantage in the Japanese market, but considering the lack of 360 presence in the land of the rising sun, this isn’t too surprising. What is surprising, still, is the concept of Final Fantasy XIII on the Xbox 360 at all!

When it comes to E3 announcements, letting the crowd know Final Fantasy XIII was arriving on Microsoft’s console was a positive shock to the system. It may not be simply because yet another Final Fantasy game is in the works but to prepare gamers for the idea that they don’t have to run out and invest in a PlayStation 3 just to play the next big RPG.

The value to the Xbox 360 is growing and the need to collect all the consoles is fading. End of an era?

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