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Your email address will not be published.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 772: Just a FableEpisode 772: Just a Fable

Vampire Crawlers getting PC and Xbox demo on February 23, and the Gaming Flashback is Jonathan Blow’s The Witness. The guys also cover the Xbox Developer Direct.

The news includes:

  • Ubisoft closes two studios and cancelled six projects
  • Marathon soars to Steam’s Top Sellers after release date reveal
  • Nintendo president is ‘carefully considering the situation’ around memory prices as research firm predicts Switch 2 price hike

Let us know what you think.

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 360: City of WarcraftEpisode 360: City of Warcraft

This week’s Gaming Flashback is a major one, in particle for Gaming Podcast: World of Warcraft, as the WoW guild established by Derrick and Jennifer is well-remembered. For Paul, however, World of Warcraft was and is the source of some deep pain.

Along with the Gaming Flashback, this week’s news includes:

  • NCsoft might allow players to resurrect the City of Heroes IP
  • Sega accuses Gearbox founder of “doing whatever the f— he likes”
  • Free full-version Xbox One game trials coming for Gold members
  • Thousands of developers sign plea for tolerance in gaming community
  • Dev on PS4?s 8GB RAM: “It didn’t really change that much for us”

All this plus Listener Feedback and the Question of the Week: “What are the strongest memories of World of Warcraft that you have?”