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?

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DSi Will Be Region-Locked, Sad Face…DSi Will Be Region-Locked, Sad Face…

One of the greatest things Nintendo has done was allowing the DS to be unlocked for regions. This allowed gamers around the world to share their favorite games from all cultures and countries with just a click of the “buy” button at an online store.

The DSi loses this great freedom by locking it down to a region. “Nintendo DS software is region free so you can play any DS software on DSi from any region. You can also browse the internet on your DSi wherever you are in the world and exchange your photos with friends from around the world,” says Nintendo (CVG).

Much like the US Entertainment Industries need to lock down everything and contribute to global piracy, Nintendo follows suit with their hand-helds, tis a sad day indeed. Of course Nintendo reasons it all away by yelling parental controls and making it easier for regions to access their own content.

“DSi is region locked because DSi embeds net communication functionality within itself and we are intending to provide net services specifically tailored for each region. Also because we are including parental control functionality for Nintendo DSi and each region has its unique age limit.”

Specifically tailored for each region is a nice way of saying that each region has to pay the penalty of not being “first” (second, or third) to get some cool new features. Although Nintendo could put emphasis on the region the gamer lives in with complete access out of those bounds if they wanted, they’ve chosen to use this as a crutch to lock users out of content.

Users will get their content, of course. It just means more home brews, software hacks, hardware hacks and workarounds for the system. If that’s what Nintendo is trying to inspire, then they’ve done their job right.

However, wouldn’t it be great if they could just come out and say “we don’t want certain people accessing specific content until we say you can.”

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The news for this week includes:

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  • Bizarre circumstances surround GSC Game World

All that plus Reader Feedback and the Question of the Week, “What was your favorite handheld game?”

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This week is a strange one, as snakes are flung at horses to turn them into unicorns, and Paul keeps finding videogame soulmates from the reader feedback. This week’s Gaming Flashback is the Amiga classic Shadow of the Beast, while the Gaming History takes a look back at the Apple Pippin.

This week’s news items include:

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Finally, the Question of the Week is “What games do you play in bed?” Yes, it’s been a weird week.