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Your email address will not be published.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

Xbox 360 Silver Accounts, Free XBL Cross-Platform GamingXbox 360 Silver Accounts, Free XBL Cross-Platform Gaming

Microsoft has announced they’ll be giving Xbox Live silver accounts access to play some multi-player cross-platform games for free until the fall update. Recently, Microsoft announced free online play with Games for Windows titles, effectively giving PC gamers “gold accounts” to play online.

Most people agree the move to give gold subscriptions to PC gamers was done because PC gamers don’t care to play Games for Windows games online if they have to pay for it. The culture of PC gaming is much different than console gaming on XBL, gamers expect the online experience at no cost; they’re already paying an ISP for network access, paying for a match-making system with a yearly subscription is not desired.

Console gamers don’t have a choice, buying the 360 experience arrives with simple to play games (no drivers, no installs) but limited online choices: pay or go away. Now, silver members will get a little taste of network play, along side PC gamers in the cross-platform Games for Windows titles.

“Supported cross-platform titles include Universe at War, Shadowrun, and Lost Planet: Colonies Edition.” (gamespot)

We question the intention here… is this as a good faith move or are they wetting people’s appitite for XBL so they’ll want to upgrade to gold in the fall? Or, maybe there are some logistical reasons to doing this in the Xbox Live infrastructure to prepare for upgrades where making it free solves a few of their internal upgrade paths and, as a side effect, gives gamers some games to play.

Of course, we’ve seen few people playing Shadowrun or Lost Planet lately. Maybe this will re-popularize a few older titles as well.

Episode 223: Snake FlingingEpisode 223: Snake Flinging

This week is a strange one, as snakes are flung at horses to turn them into unicorns, and Paul keeps finding videogame soulmates from the reader feedback. This week’s Gaming Flashback is the Amiga classic Shadow of the Beast, while the Gaming History takes a look back at the Apple Pippin.

This week’s news items include:

  • Survey: Female gamers enjoy gaming more than sex
  • June 2011 NPD sales figures released
  • Publishers spend XBLA budgets, expect retail content
  • Gamestop thinks next gen consoles will hit in 2014
  • Zynga offered $1B for Popcap
  • Ubisoft confirms multiplayer pass system to combat used game sales

Finally, the Question of the Week is “What games do you play in bed?” Yes, it’s been a weird week.

Episode 340: Pennsylvania PolkaEpisode 340: Pennsylvania Polka

Paul is back for this episode, as this week actually has a Gaming Flashback and a Game History, the former being Star Wars: Knights of the Old Republic II: The Sith Lords, and the latter being Black Isle Studios.

The news this week includes:

  • Followup: PS Vita Slim to launch in UK
  • Reports: Microsoft plans cheaper, disc-free, white Xbox Ones in 2014
  • Nintendo cuts overheard on executive salaries
  • Square Enix responds to Final Fantasy XV and Kingdom Hearts III launch rumor
  • Razer to give Xbox One gamers more peripheral options

The Question of the Week, “What was the best game you played that you felt was unfinished?”