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Your email address will not be published.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 452: Goodbye Princess Leia, Hello 2017Episode 452: Goodbye Princess Leia, Hello 2017

The year has ended, as the last podcast of 2016 was recorded last week, and released today. There’s much discussion that was cut out and saved for a future outtakes episode. Regardless, there’s plenty of show to go around, and the sound quality is also far better than ever thanks to Jonah getting a professional headset and mic.

This week’s news includes:

  • Nintendo registers trademark that could point to a SNES Classic Edition
  • Windows 10 may be getting a new “Game Mode” option
  • The next game by That Dragon, Cancer‘s dev is not what you’d expect

This week’s Question of the Week is “What game in 2017 might you buy that you normally wouldn’t?”

Yet Another PSP Re-Design?Yet Another PSP Re-Design?

It seems as if this is the third time, but SCEE has announced a new PSP design with eight different bundles being offered. This fall we should see the PSP-3000, which sounds much like a fake Acme cartoon toy, but it’s for reals.

This version will have a built-in microphone, a redesigned (brighter) LCD screen with out-of-the-box Skype abilities. The Swiss Army knife of hand-helds will keep the current outward design with inner tweaks and each bundle will cause 199 Euro.

Is the market really looking for a re-design with these features or is this Sony’s way of competing with “color DS lite” designs. Nintendo re-releases the same product with brighter colors a few years after its release while Sony seems to push a few new hardware features or enhancements.

The end result, DS still beats all expectations in unit sales month after month.

(Thanks, Kotaku)

Episode 303: BioShock Infinite Giveaway TimeEpisode 303: BioShock Infinite Giveaway Time

This week we’re giving away a free copy of BioShock Infinite for the Xbox 360! How do you win? Well, simply post a good comment! The contest winner will be announced two weeks from now.

In the meantime, the Gaming Flashback this time is the PlayStation One classic Chrono Cross, while Paul tries desperately to avoid listening to BioShock Infinite spoilers.

This week’s news includes:

  • THQ’s UDraw failure “invalidatedSaints Row: The Third‘s success
  • Levine: BioShock Infinite cost $100M to develop, and $100M to market
  • American McGee doesn’t “see anything meaningful” in the PS4, SimCity players “need to relax”
  • Schafer’s Double Fine Adventure project from Kickstarter is now Broken Age
  • Capcom announces DuckTales Remastered, developed by WayForward

All this and some Reader Feedback.