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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All that, as well as the following news items:

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Viva Piñata: Trouble in ParadiseViva Piñata: Trouble in Paradise

Once upon a time Rare though they had a winner; a game which would end all the confusion between a hardcore console and a kiddie console. Viva Piñata was supposed to change the way we think about Xbox 360 gaming by showing off a title that would make children feel more inclined to game on a “big boys console.”

Unfortunately, execution of Rare’s new franchise title came with a few rough patches, namely Gears of War. Earlier on they had press releases and conferences about how this game was going to interact with users, inspire them to watch Viva Piñata the cartoon to get new recipes for the game which would allow you to create new breeds of Piñata. There were a few flaws in the plan. They didn’t hype the game enough prior to the release and then they decided to launch the game during the over-hyped Gears of War title.

Oddly enough my children (two and four years of age) would rather watch Sponge Bob and Dora reruns than a single episode of Viva Piñata. I thought the show was cute and the bright colors and crazy creatures would draw children like moths to a flame, but they just didn’t care.

My children were too young to play the first Viva Piñata and it didn’t provide enough interest for them to watch me play it and invest the hours. I found the game to be creative and fun… for awhile. Once my happy little Piñatas started eating each other and fighting constantly I realized the joy was gone. If I want to listen to screaming and fighting I’ve got my own children, babysitting Piñatas in a fake garden just wasn’t doing it for me.

Now, Viva Piñata: Trouble in paradise has been given a date of September by Eurogamer. Rare is stating we’ll have 30 new Piñata’s to play with along with new environments, co-op play and other cute options. Admittingly, Drop-in/Drop-out co-op play does sound kind of neat but my emotional scares from the first title have not healed yet.

I was told there would be a great deal of downloadable content (DLC) for Viva Piñata. but found nothing available after I purchased the game and, if content exists now, I’ve long since lost interest in the game. The idea was solid, the demographic was available but the execution went flat. You cannot expect older gamers with children to believe Microsoft or Rare are planning to give us real kids games when you release a single title and show us no other kids games for two years.

At this point, if you’re looking for a console with more kid-friendly gaming you’re going to buy a Wii every single time. Titles on the Wii work for both young adults, teenagers, kids and older grandparents while the 360 goes strong with the 18-34 year-old male demographic.

If you want to be serious about bringing kids on board, Viva Piñata is going to need some friends not just a single sequel. Otherwise, you’re going to find out quick that the 18-34 demographic will simply nod politely and move on to their next great fix… Gears of War 2 perhaps (November, 2008).

If the upcoming Viva Piñata franchise executes like its prior title there will definitely be some trouble in paradise.

The PSN FiascoThe PSN Fiasco

It’s now the US government’s turn to question Sony about its online security, which follows the UK government’s scrutiny into the company’s affairs.

In a letter addressed to PlayStation executive deputy Kaz Hirai, the Subcommittee on Commerce, Manufacturing, and Trade has prepared a list of questions related to the intrusion; the list can be downloaded from the New York Times here. The letter asks several questions that Sony has not disclosed to the public, such as:

  • How many PSN users had a credit card on file
  • Why Sony cannot determine if credit card was stolen.
  • What are Sony’s plans towards increasing its security in the future.

The Subcommittee’s press release states:

“Given the amount and nature of personal information known to have been taken, the potential harm that could be caused if credit card information was also taken would be quite significant. The Subcommittee on Manufacturing, and Trade has a longstanding interest in consumer privacy, identity theft, and industry efforts to address threats posed by unauthorized access to consumers’ personal information resulting from a data breach.”

The Subcommittee is requiring a reply by no later than May 6, as part of a privacy driven effort “to protect consumer information.”

Meanwhile, Kaz Hirai will be holding a press conference tomorrow from Sony Japan, to address the PlayStation Network hacking crisis.

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