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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Evolution of RPG’s – Gamers Don’t Want an End?Evolution of RPG’s – Gamers Don’t Want an End?

I remember a day when old RPG games had either a level cap or a definite ending. From Pool of Radiance to Secrets of the Silver Blades to Final Fantasy the game had a final boss or stage and often had some type of level cap. Today, gamers don’t want it to end, they’d rather have the option to wonder around aimlessly or completing minor quests in order to soak up every ounce of money they spent on the title.

linkNow even Bethesda is saying “we’ve learned our lesson” from the whiplash of ending their game title and capping levels. Gamers want to go back and re-try content they missed, they want to run side quests and talk to everyone in the world they want to grind themselves to über powerful levels and become a god in their fantasy world. Can you blame them?

You can’t really blame them for wanting to maximize the content, although it’s slightly more evolved than RPG’s of old. Perhaps it was World of Warcraft and other MMORPG’s that brought us to the stage in life where we all want to squeeze every last RPG dime out of the title. As a kid I wondered the world of Hyrule and covered every tile of graphical color, burned every bush, bombed every stone looking for all the content. However, even Zelda had an end with scrolling credits – you didn’t just land on a platform with your master sword and a dream.

Other titles have used level caps to limit you and draw you into the next release of the game. This was popular in the D&D world because the game is designed to target specific levels of difficulty. They may only allow you to gain level 10 because the enemies are no tougher than level 13, allowing the challenge to be good but not overwhelming. If they allow you to get to level 50 they’d have to design the game so all the enemies grow powerful along with you — that’s not always a desired result.

Final Fantasy is a popular franchise that typically allows you to grow infinitely powerful depending on how much time you want to spend repeat killing the same enemies. Gamers aren’t always into the grind, they just want to grind “enough” to make the challenges a little more do-able.

Today, however, with larger storage capacity, larger development teams and the desire to build more value into your gameplay experience titles have dozens of side quests and sub-plots that are totally optional. The result of so many sub-quests results in a player who is much more powerful at the end of those quests compared to a player who sticks to the narrow path of the main plot. So, games much grow dynamically challenging to keep the fun per dollar high.

Do you like your RPG’s to have a definite end and a high but capped level?

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Much like Metal Gear Solid 4, Sony is looking for LittleBigPlanet to move consoles from the shelves because all types of gamers are going to want this title. Personally, the desire to want and the stronger feeling of need are two separate problems; everyone will want the game but many will need to buy a PlayStation 3 for MSRP.

Although the prices are slowly dropping for a PS3 unit, hardcore gamers are the ones that will rush out and spend a bundle of money for a console just to play one game. If not hardcore gamers, fans of the franchise (MGS4 for example) and LittleBigPlanet is still working on building a fan base for their new franchise.

The platformer LittleBigPlanet, for many, isn’t worth $399 plus the price of the game. That’s asking a lot, but Sony still thinks it can happen:

It’s going to be a hardware seller. Not only do you have the platforming experience that a lot of other games will have, you have this creativity that really is exclusive to LittleBigPlanet. (kotaku)

Would you run out and get a PS3 for LittleBigPlanet? I’m tempted, but that $399 barrier is truly a large obstacle to clear.