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Your email address will not be published.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 315: Titanfall T-Shirt Contest ContinuesEpisode 315: Titanfall T-Shirt Contest Continues

This week’s podcast is fairly heavy on the Xbox One news, but at least it makes for a themed podcast. Jordan expresses his fears at controllers that look at you, while QWOP and Surgeon Simulator 2013 are discussed.

This week’s news includes:

  • PS4 did have always on DRM, camera, but Sony changed it at E3
  • Report: Xbox One’s capabilities better than Microsoft expected
  • Report: Xbox One will be able to run Windows 8 apps
  • Xbox One getting Unity support to aid indie developers
  • Half-Life 3 rumors squashed by Surgeon Simulator 2013 dev
  • Star Citizen asset cost for ships “anywhere from $35,000 to $150,000”

The “Win a Titanfall T-shirt” contest continues. Merely answer, “What game at E3 impressed you the most?” to enter to win a large size tee.

Episode 675: Cancel CultureEpisode 675: Cancel Culture

Aside from a news blip taking about Final Fantasy 7 DLC coming to PowerWash Simulator, all of the news seems to talk about cancellations of one kind or another.

The items include:

  • Epic kills Battle Royale game less than six months after release
  • CRIMESIGHT to end service on May 1
  • EA is shutting down Apex Legends Mobile and not giving refunds
  • EA reportedly cancels new Titanfall single-player game
  • Sony, Xbox and Nintendo are reportedly skipping E3 2023

Anything other games you wanted to play but can’t anymore? Let us know.

Episode 601: Street Fightin’Episode 601: Street Fightin’

A lot of this episode revolves around the 30th anniversary of the classic fighting game in this week’s Gaming Flashback, Street Fighter II. The episode also looks at a lot of the hot news around the industry.

The news includes:

  • Microsoft plans to merge ZeniMax into a new Subsidiary called ‘Vault’
  • Electronic Arts to decide fate of Anthem
  • Terraria creator cancels Stadia port after being locked out of Google account
  • MP bill takes aim at PlayStation 5 price scalping

Let us know what you think.