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Your email address will not be published.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

Resistance 2: Epic Scale of Huge ProportionsResistance 2: Epic Scale of Huge Proportions

E3’s PlayStation 3 press release really started with Resistance 2. They show off a good deal of battle footage against a 300 foot leviathan in the middle of a crumbling city. The game definitely cries “scale” in terms of epic battles, monsters and emotional feel.

The trailer they presented after the game play demonstration was real footage of the game and shows off just how much Resistance looks like War of the Worlds. The trailer even included a radio commentator which reminds you of the War of the Worlds attack and has the same gritty battles, huge alien robots and flying ships floating over the massive city.

The trailer shows the scale and emotional feel of Resistance 2. This game may be a console seller if the trailer and game footage reflects the game and its core feeling. It makes Gears of War look tiny by comparison.

In the end, this exclusive PlayStation 3 title would keep the PlayStation 3 fans highly interested and attached to their beloved console along with bringing new folks to the PS3 domain. This game is definitely out to fight a battle with Gears of War 2.

Episode 709: Eat PikachuEpisode 709: Eat Pikachu

This week’s episode has the entire podcast crew reacting to Palworld. It’s priceless. They also discuss Alan Wake is coming to Dead by Daylight later this month and a Tetris prodigy triggering a “true killscreen” in record-setting run.

The news includes:

  • Bethesda will finally show off Indiana Jones gameplay at the Developer Direct showcase
  • Apple Vision Pro available in the U.S. on February 2
  • Palworld‘s Pokémon-with-guns adventure enters early access next week

Let us know what you think.