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?

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Nintendo is seeing some great successes with their console — duh. What is the best way to provide evidence that Nintendo has a hit with their new little white console? Perhaps the bright blue eyes of id Software? Originally, it was said that id Software wasn’t really interested in developing games for the Wii, perhaps because it goes against all that id Software has developed their company towards since 1991?

keenid Software has always leaned toward bleeding edge content, pushing hardware to its limits and utilizing technology that has just hit the market. Nobody is surprised when they’re forced to upgrade their computers to play the latest id Software creation to its fullest extent. This is the price for being top dog in graphic engines, but now they’re changing their tune a bit.

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(Thanks, 1up)