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Your email address will not be published.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 384: Homestar RuinerEpisode 384: Homestar Ruiner

This week’s episode has bad audio, but at least it’s short, due to Jonah’s lingering laryngitis. Paul insists Homestar Runner hasn’t been good in 15 years, while Jonah talks about the NES classic bomb Athena.

This week’s news includes:

  • Nintendo Virtual Store to start selling N64 and DS games
  • Tim Schafer recommends Broken Age players start over from the beginning
  • Silent Hills is officially dead

All this and Listener Feedback.

Episode 238: No Free PornEpisode 238: No Free Porn

This week’s episode is also abbreviated, as Jordan is somewhere in Pennsylvania looking for a gingerbread house while Paul is still trying to pack his entire NES library into a single suitcase. Jonah and Paul still got in enough time to do a Gaming Flashback on Thief: The Dark Project, and the following news items:

All this and Reader Feedback, too, as well as a new Question of the Week, “If you have the opportunity to read or view a highly anticipated game’s story months before it was released, would you do it or would you deliberately turn it away to preserve yourself from spoilers?” Let us know!

Microsoft To Indulge on Hype at E3 2009Microsoft To Indulge on Hype at E3 2009

This year’s E3 should be interesting as we head back to the no holds barred approach to gaming conferences. While E3 tried to go all PG for the last few years, it’s time to get back to the serious business of hype-o-rama. Microsoft’s on board with it and plans to “break the bank” in terms of hypesville.

Microsoft Game Studio’s producer Phil Spencer said:

“[It’s] very exciting, because there’s a lot of stuff on the docket and maybe we’ll break the bank a little bit and talk about things that are further out, which will hopefully get the community excited.”

Microsoft continues to hammer home big announcements at the E3 events even while in the ho-hum lull of the past few E3 events. Last year they nailed Sony with the Final Fantasy XIII announcement and hyped up the New Xbox Experience. What are they going to pull out this year now that we’ve seen Gears of War 2 and have a pulse on some of their Halo ideas?

They’re talking about hyping games further down the pipeline, perhaps to keep people jazzed about what the future holds even in these economic down times. It’s important to keep gamers focused on what is to arrive on the 360 so they don’t sway towards the opposing consoles in moments of doubt.

Of course, this begs the question, will Sony pull out even more hype? Will Nintendo continue to give mediocre showings with “I told you so” sprinkled in their message? Only time will tell.

(Thanks, Eurogamer)