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Your email address will not be published.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

Diablo 3 Content Creation PhaseDiablo 3 Content Creation Phase

Now that Blizzard feels their engine is solid, it’s time to move on to creating content for the full game. Jay Wilson, Diablo 3‘s lead designer, says the game engine is in an advance stage of completion and much of the art team has moved onto Act 2. Don’t read into that, he said game engine.

Blizzard is obviously not hurting for money, given the success of World of Warcraft and they’ve always taken their time with projects to make them solid products. Blizzard’s name is on the line and they’re brand consists of three major franchises: Warcraft, Starcraft and Diablo. When you produce so few games you’re expected to do them perfectly.

How do they do it? As Wilson says, “If we haven’t rebuilt something five times it really doesn’t deserve to be shipped. That’s pretty much our policy.” (eurogamer) While a game engine is the foundation for a great game experience, the content is king. Blizzard is deep in the mire of content production so, although the engine might be solid, the final product is probably still far from complete.

End result, expect a high quality product once again from Blizzard.

Read MoreRead More

Episode 300: The Third CenturyEpisode 300: The Third Century

The landmark 300th episode is here, and while we only got one special guest, Dan Quick, it’s still a jam-packed episode. In this episode, Jordan continues to pine for Half-Life 3, male full frontal nudity gets discussed, and Paul claims he invented the term “Whosphere”. This weeks’ Gaming Flashback is Baldur’s Gate: Dark Alliance.

The news items include:

  • The Last of Us features Naughty Dog’s “longest ever” campaign
  • Sony confirms 4K movie service for PS4
  • BioShock Infinite‘s ending may cause controversy
  • Ubisoft confirms Assassin’s Creed IV: Black Flag

There’s a ton of Listener Feedback as well as the Question of the Week, “What was your favorite moment in the TD Gaming Podcast over the years?”

Read MoreRead More

Microsoft Avatar’s and DashboardMicrosoft Avatar’s and Dashboard

Microsoft has come out and validated some earlier rumors about Xbox 360 Avatar’s and their 3D dashboard design. Apparently, this is to build more of a community and bring a bit of the Mii-like influence from the Nintendo Wii to the 360 hardware.

It seems Microsoft is taking some of the concepts from the Nintendo Wii which were poorly implemented due to the lack of any real network community and bring them to live with a more integrated useful system. This proves Nintendo was on the right track but shows off their lack of integration and fear of bringing people together.

“Create, share, and have fun with all of your friends… but avatars are just the beginning. The new Xbox is tailored for the living room. Here we are at the community channel — instead of a list of friends, you actually see them.” (joystiq)

Nintendo’s cute little idea of Mii’s and sharing them with friends was fantastic, a great bullet list feature, but rather useless. Typing in friends codes gets old way too fast and there really isn’t anyway to vocally chat with people on your friends list anyway, so who cares?

Microsoft has proven to know a bit about the community space, has parental controls and a fairly reliable LIVE system for making it all happen. Although Nintendo should look at this with a bit of pride, given duplication is the best form of flattery, they could learn a few things about how to work a community into your console too!

Read MoreRead More