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Your email address will not be published.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 375: And We’re BackEpisode 375: And We’re Back

After a problematic week, Episode 375 is now up, with tons of news. So much that there’s no room for a Gaming Flashback or a Gaming History.

The news includes:

  • Joystiq no longer scoring” reviews
  • New Harmonix survey points to Rock Band 4
  • Hatred gets an AO rating in US
  • Disney, Activision both claim landslide victory in toys-to-life category
  • Microsoft maintaining $349 price point on Xbox Ones
  • Windows 10 includes in-home game streaming from Xbox One

This week’s Question of the Week: “What, if any, was your favorite part of Rock Band?”

Episode 326: Jordan’s BackEpisode 326: Jordan’s Back

Jordan is back, and even though he’s not 100%, he’s still well enough to do the podcast. He and Jonah discuss what things make them stop playing a game, while the rest of the podcast is all about Grand Theft Auto V. They also get into discussions about laserdisc players.

The news includes:

  • Microsoft: Women make up 40% of Xbox Live audience
  • Rumor: Steam Box announcement on Monday
  • Grand Theft Auto V hits $1B in sales after 72 hours
  • Dead Rising 3frame-locked at 30″ on Xbox One
  • Sony offers fix for GTA5 error 80029564 crashing system on install

All this and Listener Feedback, as well as the Question of the Week, “When will the current generation of consoles discontinue?”

Episode 575: Resident Rock of AgesEpisode 575: Resident Rock of Ages

This week’s episode features a Gaming Flashback about… nothing. The week before the PC Gaming Show and PlayStation 5 show is kinda slow, but there was some chatter in the industry.

The news topics feature:

  • Resident Evil 3 will not receive any DLCs or significant updates in the future
  • Elite Dangerous: Odyssey will let players walk around
  • The Rock of Ages 3 open beta starts on June 9th
  • Persona 4 Golden reportedly heading to PC this week

Let us know what you think.