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Your email address will not be published.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 513: Delays and TragedyEpisode 513: Delays and Tragedy

Last week’s episode was delayed by Jonah producing a new show (The Jonah Falcon Show), then by the tragedy on Sunday, August 26. Now, the podcast recorded last week and the one recorded this week have been merged into one big 2+ hour show.

Last week’s news items included:

  • Devil May Cry 5 arrives in March
  • Cyberpunk 2077 quests similar to The Witcher 3 ‘in terms of playtime and complexity’
  • Rumor: Nintendo planning big Switch upgrade
  • Soulcalibur 6 Story Mode and DLC character announced

This past week’s news was simple:

  • EA cancels remaining Madden Classic qualifiers

To be fair, the crew ended up talking about other stuff going on during the week, including the the E3 demo for Cyberpunk 2077 that was finally released to the general public. Gaming still brings smiles to people’s faces.

Episode 428: E3 2016 Loot ContestEpisode 428: E3 2016 Loot Contest

Last week, we recorded a show with Jonah on the E3 show floor, while Paul made a cameo to discuss Zelda and Lego Dimensions before leaving with the Nerd Flu.

But better yet, we have a E3 LOOT SWAG CONTEST, with a crapton of stuff to give away, including a T-shirt and an ACTUAL Loot Crate, as well as an NBA 2K17 gold Kobe Bryant coin complete with exclusive DLC for NBA 2K16.

How do you enter? Be in the continental US and listen to the podcast to learn how to win a bunch of E3 goodies.

Episode 255: The Darkness II ContestEpisode 255: The Darkness II Contest

Dan Quick returns again to cover for Paul Nowak, and this week, the Gaming Podcast is offering free copies of The Darkness II Limited Edition, which comes with the main game and some free DLC. The guys are giving away an Xbox 360 version and a PlayStation 3 version. To win, just listen to the podcast and post what your favorite scary movie is.

The game news this week includes:

  • Ex-SCEE senior VP Phil Harrison joins Microsoft’s European team
  • DOOM developer John Romero has “plans” for “old school” shooter
  • EA defends Mass Effect 3 From Ashes DLC data being on disc
  • Notch settles with Bethesda over “Scrolls” trademark
  • DICE: 2GB RAM won’t be enough for next gen consoles
  • Angry Birds theme park to open in Finland
  • GAME puts itself up for sale, GameStop interested
  • Diablo III release date announcement “in a few days“, no PvP in launch version

And yes, they know that the announcement was just made today – May 15th release date for Diablo III.

The contest to win either the Xbox 360 or PlayStation 3 version of The Darkness II will run this and next week, with the winners announced in Episode 257.