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Your email address will not be published.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 507: Batman and NinjasEpisode 507: Batman and Ninjas

Last week’s episode was a bust, and there was a strange glitch in this one that caused the audio on Jonah’s side to completely cut out. However, it’s been recovered, and this episode deals with the direct-to-Blu-Ray animated film Batman Ninja.

This week’s news includes:

  • Fallout 76 has fast travel, and players under level 5 can’t die in PvP
  • Indivisible, the RPG from the creators of Skullgirls, gets a stunning anime teaser
  • Monster Hunter: World PC won’t have mod support at launch
  • Marvel Comics legend, Spider-Man co-creator Steve Ditko found dead at 90

Let us know what you think.

Episode 231: Plus One PaulEpisode 231: Plus One Paul

Paul has some angry comments, Jonah has some angry comments, while Jordan just chuckles and makes a Freudian mistake. In between complaints, the Gaming Flashback looks at the Amiga classic Syndicate, and the following news items:

  • The Lund Report: August 2011 NPD
  • Tiger Woods PGA Tour 12 PC controversy rages
  • THQ: Next-gen consoles will be discless
  • Quantic Dreams claims they lost 10M euro on used games
  • 3DS sales jump 260% following price drop
  • Syndicate reboot finally confirmed and unveiled by EA

Finally, the Question of the Week: What was the most disappointing remake or reboot of a game you’ve played? All that and Reader Feedback, too.