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Your email address will not be published.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 267: Do the RobotEpisode 267: Do the Robot

This week the guys relax after the hecticness of E3, and get on to some of the major post-convention news. As Paul S. Nowak struggles with connection issues, Gaming Flashback returns with the original Tony Hawk’s Pro Skater.

This week’s news:

  • Microsoft unveils new tablet
  • Rumor: Leaked doc claims 720 launches in 2013, 3D Kinect in 2014, OnLive acquisition
  • May 2012 US sales down 28% over last year despite Diablo III
  • Australian gamers get adults-only R18+ classification

All this and Reader Feedback. This week has no Question of the Week – just ask the crew some questions.

Episode 378: Hilary 2015Episode 378: Hilary 2015

This week has a very special guest, former IGN editor and current Dog and Thimble podcast host Hilary Goldstein, as he teams up with Paul to razz Jonah incessantly, as well as add a certain amount of NSFW spice to this week’s proceedings.

The news items include:

  • Rock Band DLC hints at a comeback
  • Sony appears to have ‘abandoned’ its trademark for The Last Guardian
  • Final Fantasy 15: Episode Duscae demo detailed
  • Nvidia’s big March 3rd event – is it a gaming phone?
  • After raising $114,000 on Kickstarter, dev goes silent
  • BioWare co-founder Greg Zeschuk has come back from retirement

All this and Listener Feedback.