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?

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You’re looking to pickup a copy of Guitar Hero World Tour, but you’re currently unsure which bundle does what and how much each will cost. That has now been made clear and gamers can go about their holiday shopping business later this month (Oct. 26th) to pickup the bundle of their choosing.

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“And, if $190 just isn’t enough money to spend for you, Red Octane is also offering a special $240 deluxe full band kit bundle that also comes with an XL t-shirt, battery charger, key chain, and guitar case. This deluxe kit is available for both the Xbox 360 and PlayStation 3 versions, with a $220 deluxe kit offered for the PlayStation 2 and Wii.” (1up)

One other thing that 1up observed in this pricing structure: Guitar Hero with guitar controller was $70, Guitar Hero II with controller was $80, Guitar Hero II on the Xbox 360 with controller was $90 and, of course, Guitar Hero III with controller was $100. Are we slowly being brought to the price point that these publishers want to reach? It seems they’re drawing us slowly to higher values as we continue to purchase into their schemes.

Granted, their schemes are fun as all heck so we’re willing to pay to play, but where will it end? Fairly soon we’ll be paying more money for our controller and rock genre style game than the console hardware with extended warranties.