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Your email address will not be published.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

SimAnimals, The Next Gen Black & WhiteSimAnimals, The Next Gen Black & White

Electronic Arts has announced SimAnimals, a game where you play the godlike hand and control the lifestyle of over 60 animals. In the game you’ll play the role of a disembodied hand which moves around and life animals, pick flowers and interact with the environment much like a past Lionhead Studios game: Black and White.

EA’s not exactly being the most creative with this Wii and DS game based on the sounds of it so far, as it clones a lot of the features in Black and White, including how “animals react” when you treat them a specific way. However, we’ve not had this style of game on the Wii or DS, both very “touchy” in methodology.

Black and White had the touch sensitive control scheme using tactile feedback with the mouse implemented with Immersion technology. This brings the style of gameplay to a new level, but nothing we’ve heard thus far makes us think originality. Cute and cool, perhaps but it’s nothing new. Of course, who said it had to be new?

We know old gaming concepts sell well at this point!

VGRT Gaming Podcast 217: Pre-E3 ShowVGRT Gaming Podcast 217: Pre-E3 Show

The TD Gaming Podcast and Videogame Roundtable merge, as Jonah Falcon introduces VGRT regular Jordan Lund to his new listeners, as the VGRT Gaming Podcast is born.

The podcast is a little rushed, however, as E3 approaches, giving the duo only some time to discuss the eventful past week, which includes the following news:

For this podcast, this Question of the Week is, “What game do you want to learn about the most at E3” Of course, by the time the next podcast is launched, that question will probably be satisfied. As for Reader Feedback, we didn’t have time to answer it, but we will respond to it next week!

Episode 708: Hello 2024Episode 708: Hello 2024

The first episode of 2024 is a short one, though the guys discuss the original Mickey Mouse hitting the public domain, Square Enix declaring it will be “aggressive in applying AI”, CD Projekt RED staying independent, and Valve ending all support for CSGO in favor of Counter-Strike 2.

The news includes:

  • Activision Blizzard workers speak out after Bobby Kotick’s CEO exit
  • Star Wars Outlaws releasing “late” 2024
  • Studio behind PlayStation Firewall games shuts down due to “lack of support” for VR within industry

Let us know how your 2023 went.