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Your email address will not be published.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 701: Carts and GlitchesEpisode 701: Carts and Glitches

The guys continue from #700 by discussing, among other things, the upcoming Dark Forces remaster.

The news includes:

  • Xbox Partner preview
  • Cities: Skylines 2 studio promises performance issues can and will be fixed
  • PlayStation 5 Slim disc drive seems to require internet connection to install
  • Xbox sees record-breaking Q1 gaming revenue
  • Hogwarts Legacy Switch Day One update is larger than game’s cartridge size

Let us know what you think.

Episode 717: Fake Xbox LiveEpisode 717: Fake Xbox Live

No Gravatar

This week, the gang follows up on Tim Sweeney from last week, and also discuss Dark Souls 2 modding, the “photorealistic” ant RTS Empire of the Ants, and Resident Evil 4 Remake crossing 7 million copies sold.

The news also includes:

  • Saber Interactive confirms “a number of titles” still in development
  • Star Wars: Battlefront Classic Collection players tear into Aspyr
  • Halo 2 online matchmaking returns in March thanks to community modders

Let us know what you think.

The post Episode 717: Fake Xbox Live first appeared on Gaming Podcast.

Episode 394: Paul Bravely DefaultsEpisode 394: Paul Bravely Defaults

Paul is back from being deathly ill, and joins a half-asleep Jonah and Scott, where he and Scott try to have better timing. There’s no Gaming Flashback this week but plenty of weird news.

The list of news items include:

  • Disturbing portrait of Konami corporate environment alleged
  • Deus Ex: Mankind Divided: player choices more impactful, boss fights optional
  • ZombiU drops the “U,” preps for August launch on PC, Xbox One, PS4
  • Fallout 4 fan releases schematic for 3D printed Pip-Boy
  • Vote to play coming soon for PS Plus members
  • Hitchhiking robot is decapitated, left in a ditch

There’s a new Question of the Week that wasn’t going to be the Question – listen and find out what it is.