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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Next week will see Scott joining in with his impressions of the conference from afar.

2old2play’s 2008 LAN Video, Older Gamers Having Fun2old2play’s 2008 LAN Video, Older Gamers Having Fun


2OLD2PLAY from Janks Morton on Vimeo.

For those 25 and older, 2old2play offers lots of great gaming fun and communities for all genres of gaming. They’ve been around since roughly 2005, this video, done by Janks Morton (one of the members) is excellent. This type of footage could easily be something on a cable network, A&E or Travel Channel, very high end editing that can’t be beat for a LAN party.

The Chicago LAN is an annual event for these older gamers. As a fellow community member, I’ve got to tip my hat to the quality content in the coverage. Hopefully, next year, I can go too.

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PlayStation 3, March 2009 Price Drop RumorPlayStation 3, March 2009 Price Drop Rumor

With so many people wishing Sony would cut the PS3 price to something more reasonable, it’s no big surprise we see constant rumors about potential “price cuts.” This time, a March 2009 rumor “supposedly” came out of the Sony Annual Briefing in London where a butt ton of information was “rumored” to be leaked.

The anonymous source is running around with a bunch of neat rumors, such as a LittleBigPlanet release on the PSP but the one that may hit home most with gamers is price cutting. The PS3 has been around for a few years now and hasn’t budged on the price tag; they’ve had fire sales on obsolete products (smaller disk drives mainly) but no official drops.

Sony won’t comment on speculation, of course, but we’re sure they want to catch Mr. Anonymous from hiding in their meetings and giving away their information… if it is real. D+Pad published the rumor-mongers message saying the “SCEE will be getting more competitive in price from March 2009 onwards.”

Easter would be a fine time for a price cut, if the speculation is real. This upcoming holiday would have made the most sense, to consumers, but Sony apparently has no plans to reduce the price around the time their sales will be increasing anyway. As the PlayStation 3 is doing okay in PAL territories Sony is relying on them, it would seem, to kick up the numbers and show Microsoft they’re not the only second-place game in town.

The Wii continues to dominate and we’re sure a PS3 price drop won’t impact Nintendo’s sales strategy or gamers decisions on one console versus the other as a price drop wouldn’t bring it to a competitive Wii price.

What is your magic number? What price would you buy a PS3 at if you don’t own one already. For us? Drop it a bit and throw in a free LittleBigPlanet.