PlayStation 3: Not About Quantity, About Profitability

July 11, 2008July 11, 2008| schommerschommer| 0 Comment| 2:22 pm
Categories:

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”

  1. Pingback: Final Fantasy XIII - Xbox 360 | Gaming Podcast

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

MGS4 Pushes PS3 Up 300%MGS4 Pushes PS3 Up 300%

Metal Gear Solid 4 was a solid release for the PlayStation 3, the exclusive title that gives Sony an edge over the competition. This was Sony’s Halo 3 title and it needed to be a big success in order to keep gamers confident in the Sony brand.

Sony is reporting a 300% increase in PlayStation 3 sales over last month, mainly due to the desire for people to own Metal Gear Solid 4. Remember, this isn’t an increase in game sales, this is an increase in console unit sales, providing evidence that MGS4 sold consoles.

While Grand Theft Auto 4 seemed to sell a few consoles but, overall, didn’t impact console statistics during its release, this exclusive PS3 title has done just the opposite. Perhaps because of its exclusivity? Xbox 360 consoles have been in the hands of the consumer for a few years now, most of those consumers actually purchased GTA IV (as expected and reflected in sales) but not a lot went out to purchase the console. They already had it or didn’t care to own it for a game like GTA IV.

While many people purchased Metal Gear Solid 4 because it’s “Metal Gear,” you can see from the trailers that the game looked impressive, felt complete and contained a lot of great action. You’ll get a great sales pop the first few days on a title with a huge fan base but to sustain the growth and sell consoles you’ve got to provide a well known title that doesn’t suck.

MGS4 doesn’t suck by any reviewers score; it’s not perfect, but what game is? MGS4 delivered what it was said to deliver with very few bad experiences and that’s all you can ask for a console moving title.

So, what next? Sony has promised us that MGS4 is just the first of many titles to blow our minds. Resistance 2, Little Big Planet and what of that MAG game they showed off at E3? 256 players? We won’t hold our breath for that title, but Resistance 2 and Little Big Planet, combined, may move a few more units.

It may not be about the games today that move the next round of PlayStation 3 consoles, it’s about the promise of the games tomorrow with titles like MGS4 to hold us over until then.

(more…)

Read MoreRead More

Castle Crashers, Win A Free CopyCastle Crashers, Win A Free Copy

Although we weren’t able to get a free copy to give away for Castle Crashers due to limited supply, GameStooge has one, and has the ability to hand one out. If you’re looking to get in on the contest and potentially get a free code to download Castle Crashers upon its release, checkout GameStooge’s contest.

The rules are simple: “Write in the comment section what is your favorite movie with a castle, and why it’s the castle is so great in it – minimum 30 words.” The game looks crazy fun, so I highly suggest you put in a contest entry if you’ve got an Xbox 360 gamer tag and 360 console to play it on!

Read MoreRead More

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!

Read MoreRead More