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Your email address will not be published.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 271: Paul-less PodcastEpisode 271: Paul-less Podcast

This week’s Gaming Podcast lacks Paul S. Nowak, who had to bow out due to illness, but there’s still Jonah Falcon, Jordan Lund and Daniel Quick to keep the podcast lively. This week features yet another weird NES title, Wall Street Kid, and some friendly Paul-less banter between the trio.

This week’s news includes:

  • Capcom: Street Fighter X Tekken DLC will never come to Xbox 360
  • Vivendi finding few buyers for Activision-Blizzard
  • Gearbox: “Wouldn’t be surprised” if more aggressive PC games start to appear
  • Grand Theft Auto V will support planes and jets, won’t have beta test

Jonah also startles Dan and Jordan with a “secret topic” with the $99 console, the Ouya, which leads to the Question of the Week, “Would you buy a $99 Android-based console?”

Episode 580: Virtual E3Episode 580: Virtual E3

Publishers are doing their virtual E3 announcements, such as Ubisoft Forward and ID@Xbox’s Indie Showcase. There’s other wild news going on, and some not even in the official news items below.

Said news items include:

  • Ubisoft executives quit over misconduct allegations
  • Microsoft has stopped making the Xbox One X
  • Blasphemous gets free Stir of Dawn DLC on August 4

Let us know what you think.

PlayStation 3, March 2009 Price Drop RumorPlayStation 3, March 2009 Price Drop Rumor

With so many people wishing Sony would cut the PS3 price to something more reasonable, it’s no big surprise we see constant rumors about potential “price cuts.” This time, a March 2009 rumor “supposedly” came out of the Sony Annual Briefing in London where a butt ton of information was “rumored” to be leaked.

The anonymous source is running around with a bunch of neat rumors, such as a LittleBigPlanet release on the PSP but the one that may hit home most with gamers is price cutting. The PS3 has been around for a few years now and hasn’t budged on the price tag; they’ve had fire sales on obsolete products (smaller disk drives mainly) but no official drops.

Sony won’t comment on speculation, of course, but we’re sure they want to catch Mr. Anonymous from hiding in their meetings and giving away their information… if it is real. D+Pad published the rumor-mongers message saying the “SCEE will be getting more competitive in price from March 2009 onwards.”

Easter would be a fine time for a price cut, if the speculation is real. This upcoming holiday would have made the most sense, to consumers, but Sony apparently has no plans to reduce the price around the time their sales will be increasing anyway. As the PlayStation 3 is doing okay in PAL territories Sony is relying on them, it would seem, to kick up the numbers and show Microsoft they’re not the only second-place game in town.

The Wii continues to dominate and we’re sure a PS3 price drop won’t impact Nintendo’s sales strategy or gamers decisions on one console versus the other as a price drop wouldn’t bring it to a competitive Wii price.

What is your magic number? What price would you buy a PS3 at if you don’t own one already. For us? Drop it a bit and throw in a free LittleBigPlanet.