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Your email address will not be published.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 302: Just a TwosomeEpisode 302: Just a Twosome

This week Jonah and Jordan go it alone without Paul, which is unfortunately since the Gaming Flashback is the classic Nintendo 64 title Paper Mario. It might be just as well as the events of the last week made the crew ramble on about the industry at length, making the post much longer than usual.

This week’s impressive news items:

  • John Riccitiello steps down as CEO of Electronic Arts
  • Firaxis announces Brave New World expansion for Civilization V
  • Will fans back an Alice 3 Kickstarter, asks American McGee
  • Lord British explains Shroud of the Avatar‘s offline gameplay and DRM
  • Facebook of Italian automobile company mentionsGran Turismo PS4″
  • Team Meat sitting out on developing for next-gen consoles

Lots of Reader Feedback, but no Question of the Week this week – just too much show.

Episode 550: Kowtowing to ChinaEpisode 550: Kowtowing to China

Blizzard finds itself in hot water as it finds itself having to explain its actions in pleasing the Chinese government, in news that’s still hot and doesn’t look like it’s going to cool down anytime soon. It’s enough to overshadow even an official console announcement from Sony. There’s a Gaming Flashback, the embarrassingly bad FMV game Plumbers Don’t Wear Ties.

The news this week includes:

  • Blizzard is facing a boycott after removing a Hearthstone Grandmaster
  • PlayStation 5 launches Holiday 2020
  • Doom Eternal delayed until March 2020, Doom 64 goes multiformat

Let us know what you think.

Episode 727: More AssassinationsEpisode 727: More Assassinations

No Gravatar

Ubisoft is coming back with the Assassin’s Creed games, but the guys also discuss the sheer Scottishness of Still Wakes the Deep, Farming Simulator 25 announced, 20 TB NVMe drives for under $300, Final Fantasy 14 producer Yoshi-P apologizing, Space Marine 2 public beta test canceled, and Forza Horizon 4 to be delisted.

The news also includes:

  • Multiple Assassin’s Creed remakes are in the works, according to Ubisoft CEO
  • Sega’s new Crazy Taxi game will be open-world and “massively multiplayer”

Let us know what you think.

The post Episode 727: More Assassinations first appeared on Gaming Podcast.