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Your email address will not be published.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 677: Let’s Try AgainEpisode 677: Let’s Try Again

Where’s episode 676? Completely unlistenable. Not to mention this episode had to be reuploaded due to file corruption.

The guys discuss Valve luring cheaters into a trap, Nvidia predicting AI models 1,000,000 times more powerful than ChatGPT within 10 years, Sons of the Forest being inexplicably popular, EA making Dead Space 2 and 3 remakes, and an absolutely adorable Tunic plushie.

The news includes:

  • Next Civilization game officially announced by Firaxis
  • Beyond Good & Evil 2 studio reportedly under investigation for “unprecedented” burnout and sick leave
  • Sony’s State of Play 2023
  • Blumhouse’s new gaming division will focus on “indie budget” games

Let us know what you think.

Little Big Planet – Release Date: October 21Little Big Planet – Release Date: October 21

If there is one time this year to pickup a PlayStation 3, it’s going ot be on October 21st when Sackboy jumps onto the scene with Little Big Planet. You don’t have to be a casual gamer to have a desire to play Little Big Planet and we’re sure to see that in upcoming reviews.

The question really comes down to, will Little Big Planet move consoles off the shelf? In theory, had the console been more reasonably price, you’d probably get a huge pop in sales. As it stands, you’re asking customers to spend above and beyond on a console just to play a 2D-Style platformer. No matter how fun the product is, and it will probably be fun in epic proportions, John Q. Public isn’t going to run out and drop large bills for the game.

Proof of that can be seen in the huge sales increase when Microsoft dropped their pricing structure. Gamers who were not current generation compatible ran out to pickup the console and the shelves went empty. No doubt Little Big Planet will move a few consoles, for those on the edge of PS3 readiness… but it won’t be long lived and it won’t be as epic as this title will.