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Your email address will not be published.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 598: Welcome to 2021Episode 598: Welcome to 2021

This is the first podcast of 2021! It was also recorded a day before people decided to invade the US Capitol. How weird is that, hearing us blissfully unaware of insurrectionists who thought they could terrorize the US Senate?

Anyway, this week’s news includes:

  • Minecraft Earth is closing in June
  • Bethesda tweets about Elder Scrolls
  • Hitman 3 will launch with trilogy-wide optimizations

Let us know what you think at the Facebook comment site.

Episode 460: PAX East 2017 RecapEpisode 460: PAX East 2017 Recap

Jonah Falcon is finally back from PAX East 2017, and related his experiences at the convention. Somehow, T.J.’s musings on Dune and the origins of Mini-Me come up during the discussion. Among the games discussed are Snake Pass, Earthfall, Dauntless, and Yonder.

There’s also some news discussed:

  • Payday owner Starbreeze to publish System Shock 3
  • Switch stock and sellouts could be a problem for Nintendo

Let us know what you think and post in the comments!

Episode 354: E3 Swag Bag Part 2Episode 354: E3 Swag Bag Part 2

The E3 Swag Bag contest is still going on, while Paul, Jordan and Jonah discuss the latest in videogame industry news.

This week’s news includes:

  • Nintendo loses Wii patent lawsuit to Philips
  • PlayStation Now beta gets six new games, but those high prices remain
  • Crytek claims it’s doing fine, despite rumors
  • Oddworld: New ‘n’ Tasty heading to Xbox One with ID@Xbox
  • Google announces virtual reality app Cardboard

All this and Listener Feedback. The contest question is still up: “What was your biggest takeaway from E3?”