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Your email address will not be published.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 383: Get Some Board Games InEpisode 383: Get Some Board Games In

This episode was recorded on short notice thanks to last week’s late posting, so the Listener Feedback that responded to 382 couldn’t make it here. Paul and Jonah discuss some board games with remarkably similar themes they played in the past few days. Paul also waits for his compensation for The Sims Freeplay.

The news of the week includes:

  • Microsoft discontinues Kinect for Windows
  • Microsoft says open source Windows is “definitely possible”
  • OnLive shuts down streaming games service, sells patents to Sony
  • Mario Maker gets release date

No Listener Feedback this week, so the Question of the Week remains the same: “What do you think the future is for old games?”

Episode 723: Hellblade and HelldiversEpisode 723: Hellblade and Helldivers

The gang discusses the PC Gaming Show coming June 9, Tesla ending Steam support in its vehicles, Ghost of Tsushima being PlayStation’s biggest single-player PC launch to date (second only to Helldivers 2), Hellblade 2 developer Ninja Theory’s next game reportedly already greenlit by Xbox (and “no plans whatsoever” to close studio), Grand Theft Auto 6 publisher “highly confident” of an Autumn 2025 release window and the Resident Evil 1 Remake is in production and will release in 2026 according to a leaker.

The news includes:

  • This year’s Call of Duty will reportedly launch on Xbox Game Pass
  • Jason Voorhees slashes into the MultiVersus roster
  • Life By You is delayed again

Let us know what you think.

The Calm Before The Storm, Why No News?The Calm Before The Storm, Why No News?

Journalists and bloggers around the Net are doing whatever they can to scrape up news on the gaming industry. What’s the deal, it’s a Monday and nobody in the gaming industry has anything really big to announce, talk about or “leak” onto this here Interwebs?

Sure, we can read about a 7 year old’s request for game design tips for Little Big Planet, more than enough DSi news beating down the same door over and over or pour through pages upon pages of Warhammer Online reviews. But, where is the news?

Here is some news for you: nobody wants to make waves in the game industry right now. Consumers around the globe are looking for what is hot and what is not for the holiday rush. Parents are watching their children and looking to see what they’re talking about to build an internal memory of this years wish list of items. Maybe a Wii Game or a DS game or a 360 console or perhaps the PS3.

Moms and Dads are looking at the entertainment industry to find the best bargains and deals so we can stow away our tech toys in closets, basements and attics for holiday mornings. You don’t have to celebrate Christmas to be looking for great game deals this holiday season.

(more…)