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Your email address will not be published.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 312: Dare You To Press the ButtonEpisode 312: Dare You To Press the Button

This week’s episode is the final episode before E3, and next week, an outtakes episode filled with Dr. Who and Game of Thrones discussion will run. After that, we’ll have some serious E3 2013 discussion, especially about what happens with Microsoft and Sony in particular.

No Gaming Flashback, but news includes:

  • Pachter predicts $349 for PS4, $399 for Xbox One
  • World of Warcraft movie ‘begins shooting‘ in Q1 2014
  • Robert Bowling’s Robotoki raided by LAPD, mistake COD figure as armed intruder
  • Documentary seeks to unearth 3.5M E.T. cartridges from landfill
  • Oculus Rift developer Andrew Scott Reisse, 33, killed as bystander in police chase
  • Shadow of the Eternals Kickstarter fundraising struggling

All that and Listener Feedback.

Episode 664: GTA6 LeakedEpisode 664: GTA6 Leaked

This episode was going to focus on the Toyko Game Show, but a massive leak of Grand Theft Auto 6 trumped all conversation.

Meanwhile, TJ’s mic still makes him sound like he’s in the bathroom.

The news includes:

  • Huge GTA 6 leak includes gameplay footage of robbery, Vice City locations, and two playable characters
  • Tokyo Game Show 2022 announcements

Let us know what you think.

Episode 325: Civilized PodcastEpisode 325: Civilized Podcast

This week’s podcast has Dan Quick filling in for an ailing Jordan Lund, while Civilization V inevitably comes up in conversation with the Polycast host with Jonah Falcon. There’s no Gaming History or Gaming Flashback, but tons of news items.

The news includes:

  • Andrew Wilson named Electronic Arts CEO
  • PlayStation Vita TV announced
  • Sega buys Atlus for 14 billion yen
  • Star Trek video game “big disappointment” to J.J. Abrams
  • Chair on Shadow Complex 2: Fans “don’t want it more than we do”
  • Steam adopts Xbox One’s former family sharing program
  • Diablo III auction house closing in March 2014

There’s also some Listener Feedback from the T-shirt winning contestant.