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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Capcom isn’t fooling around, they know their market for Mega Man 9 on Xbox Live, WiiWare and PSN and its nostalgic gamers with a desire to be a kid again. Any retro gamer will tell you the old school experience must include some pixel flickers, slow down and 8-bit style bugs.

They have decided to include an optional feature to enable old school bugs on purpose. The limitations of early hardware like the NES caused situations where you would only see a limited number of creatures on the screen at any one time else things slowed down, flickered and got undesirable fast. What used to be undesired is now nostalgic!

“Yeah, there were some things, like you couldn’t have more than three enemies on the screen at once, so we had to make sure that that’s how it stayed in our game. In the part with the dragon with the flame, [there should be] flickering, and whatnot,” noted the game’s producer. “In the options of this game, you can adjust that, unlike the old games. We purposely put some of those old-school bugs into this game, so it does recreate that feel.” (joystiq)

Luckily these options are disabled and can be enabled to get a bit of old world feel if your little heart desires. For most of us, we should have moved on from the old times and are ready to play old school games on new school hardware to show off a bit more fluid 8-bit logic. Not so for everyone, which is why the feature was added as an optional one.

Staying true to old school computing in an emulator is extremely important when playing old ROM games because the game was coded with a certain speed and understanding of the hardware. Change the hardware without updating the game can lead to an unusable product. Mega Man 9, however, is a new game so it doesn’t have to adhere to old standards. But, it’s funny to see it try.

Kaz Hirai Dooms 360 To Short LifeKaz Hirai Dooms 360 To Short Life

Sony’s PlayStation 3 has a 10-year plan. We’ve heard about the plan, we’ve seen Sony’s current execution and we’re starting to see some of the titles making their way to the PS3 for 2009. The Xbox 360? Kaz, Sony Computer Entertainment’s head man, made his thoughts clear when speaking to Official PlayStation Magazine.

kaz“Last time I checked, they’ve never had a console that’s been on the market for more than four or five years and we’ve committed to a ten year life cycle, so you do the math…,” he says. He goes on to state that the Xbox 360 won’t have a larger install base by the end of their 10-year plan has been completed, “unless things go really bad.”

Of course, nobody says Microsoft’s 10-year plan isn’t to push out yet another console. Is that wise? We don’t really know, but you can’t count them out on it. Maybe they’ll only have half the install base but two consoles in the market within the next ten years, nobody really knows.

The one major hole we can see in his comments revolve around their claims that the Microsoft doesn’t have any history of a console being on the market for very long. If I recall, Sony managed to squeek one by on Nintendo with the original PlayStation, which changed everything for the next ten years. Sony didn’t have a 5-year track record when they started taking Nintendo down, why does Microsoft need to have an extensive resume as well?

As for Wii?

“It’s difficult to talk about Nintendo because we don’t look at their console as being competitors. They’re a different world and we operate in our world — that’s kind of the way I look at things…” (kotaku)

Say what you want about Microsoft vs. Sony, but it sure sounds like Sony doesn’t want to acknowlege Nintendo’s success because it casts a dark shadow on their own product. Nintendo and Sony have been battling for years, that’s just the way it is and that’s how the industry sees it. When NPD releases numbers, when journalists write articles about consoles and when the war is finished one thing remains constant: all three consoles are included in the equation.

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Let us know what you think.