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Your email address will not be published.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 312: Dare You To Press the ButtonEpisode 312: Dare You To Press the Button

This week’s episode is the final episode before E3, and next week, an outtakes episode filled with Dr. Who and Game of Thrones discussion will run. After that, we’ll have some serious E3 2013 discussion, especially about what happens with Microsoft and Sony in particular.

No Gaming Flashback, but news includes:

  • Pachter predicts $349 for PS4, $399 for Xbox One
  • World of Warcraft movie ‘begins shooting‘ in Q1 2014
  • Robert Bowling’s Robotoki raided by LAPD, mistake COD figure as armed intruder
  • Documentary seeks to unearth 3.5M E.T. cartridges from landfill
  • Oculus Rift developer Andrew Scott Reisse, 33, killed as bystander in police chase
  • Shadow of the Eternals Kickstarter fundraising struggling

All that and Listener Feedback.

Xbox 360’s Fallout 3 Not Safe From PiratesXbox 360’s Fallout 3 Not Safe From Pirates

Just last week in our gaming podcast we were talking about how Gears of War 2 wasn’t going to make a PC debut because it has a bit of a problem with piracy. We were afraid this movement was going to cause game developers and publishers to stick with console’s “big can of DRM” over the PC for many future releases.

Turns out, Fallout 3 was stolen before it was announced as finished and has begun to show up on torrents around the Internet. This, of course, has lead folks to believe the leak took place at the manufacturing plant given the obvious circumstances behind the event. Sure, the title could have been leaked at the developers studio, but who would want to cause their products sales to suffer? Perhaps a hacker broke into the studio and stole the raw images?

There are plenty of possibilities, but the fact of the matter is this is the “DRM” console version of the game. It has been stolen and downloaded by thousands of people who are going to actually take the time to make it work on their ‘tweaked’ console. Just when we said “it’s too hard to hack the Xbox 360 and its games,” some pirate comes out and does it!

While the pirates set sea with the glorious booty that is Fallout 3, Bethesda’s staying hush about the incident for now. In odd timing, Ubisoft came out, prior to this event, talking in respect to Tom Clancy EndWar saying:

“To be honest, if PC wasn’t pirated to hell and back, there’d probably be a PC version coming out the same day as the other two.” (gamasutra)

Perhaps, the pirates want to bring some attention to the console market in terms of piracy so developers continue to produce PC titles? If nobody is safe, there will be no one safe-haven console to run to when pirates are stealing “potential sales.”

Episode 505: 3 Hours Of E3Episode 505: 3 Hours Of E3

This week’s episode is three hours long — Jonah’s mic was moving in the first minute, but after that, it’s ok. There’s no news, just discussion of each of the press briefings that preceded E3, as well as some of the games that Jonah got hands-on time with. TJ is sad that he didn’t get to attend this year, while Scott is getting E3 swag.

Next week, back to news items!