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Your email address will not be published.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 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 375: And We’re BackEpisode 375: And We’re Back

After a problematic week, Episode 375 is now up, with tons of news. So much that there’s no room for a Gaming Flashback or a Gaming History.

The news includes:

  • Joystiq no longer scoring” reviews
  • New Harmonix survey points to Rock Band 4
  • Hatred gets an AO rating in US
  • Disney, Activision both claim landslide victory in toys-to-life category
  • Microsoft maintaining $349 price point on Xbox Ones
  • Windows 10 includes in-home game streaming from Xbox One

This week’s Question of the Week: “What, if any, was your favorite part of Rock Band?”

Episode 297: Intendo With An IEpisode 297: Intendo With An I

[Note: Due to a mic issue, some of the podcast is slightly distorted.]

This week’s podcast was recorded a day early due to schedule conflicts, but we make up for it with an actual Gaming Flashback this week of one of the most famous recent RPGs, Knights of the Old Republic.

In addition, there’s a ton of news:

  • Brad Wardell states RTS’s aren’t dying – just waiting
  • Microsoft considered buying Sega at one point
  • UK: Wii U sells just 34,000 pieces of software in January
  • Next World of Warcraft update to arrive in the “coming weeks”
  • thatgamecompany had been bankrupt when Journey shipped
  • Report: Next-gen Xbox will feature Siri-like voice recog
  • Ubisoft plans new Assassin’s Creed game for 2013/14, set in a new time period

All that plus Reader Feedback and a Question of the Week: “What was the first roleplaying game you enjoyed?”