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Your email address will not be published.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

Command and Conquer: Red Alert – Free!Command and Conquer: Red Alert – Free!

It is the 13th anniversary of the Command & Conquer Series, Red Alert, and Electronic Arts is giving away the original C&C: Red Alert as a download for free. Holy crap, how neat is that?

This is also a great marketing technique, Red Alert 3 arrives soon, so this will help you keep it fresh in your head prior to the new release. Maybe this also gives new gamers the ability to experience the old title before heading into the third revision.

“Download both the Allies and Soviets discs (each disc contained the single-player campaign for its respective faction), but the files are actual ISO images of the CDs themselves. That means that in order to play them, you’ll either need to burn the ISO images onto a blank disc, or use a Virtual CD program to load them.” (1up)

The free Red Alert game download will run on XP/98/Me/95 but no official Vista support. Now, you’ve got a chance to play Red Alert… what about Red Alert 2? If you pre-order Red Alert 3 you’ll get the second in the series for free as well- genius!

There is really no reason not to take advantage of this awesome deal if you’ve never played a Red Alert game and want to see how the foundation of early RTS style games started. Although this isn’t the first C&C in the game franchise it launched a few new advancements on the original C&C title so you’re really getting an RTS based on learning experiences from the first, at no price.

Heck, maybe we’ll download it again just because we can! Excellent.

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

Xbox 360 Cutting Price Cutting…Huh?Xbox 360 Cutting Price Cutting…Huh?

For those that ran out to pickup a 20GB Xbox 360 for the low low price of $299… sit down. This may hurt a bit. Their is a new rumor stating the Xbox 360 is undergoing another price cut, for all consoles in their full array of consoles.

Let’s just get this over with quick:

  • Arcade (no hard drive) to $199
  • Pro (60GB) to $299
  • Elite (120GB) to $399

This is a highly competitive price cut making the Xbox 360 much more desirable, a price closer (and in some case beating) the Nintendo Wii. Imagine, a graphically powerful console for a price near that of the “last generation” graphics of the Wii.

Of course, those purchasing a Wii aren’t buying it because you’re saving money on a next-generation console. In the end, if this price cut is real, we’re seeing the next-generation console market really dropping to some realistic figures.

Bad for Sony, considering they’re still trying to make money on their expensive box. No doubt Sony’s in this for the 10-year plan but if they can’t keep competitive with Microsoft people may ignore you for the next 10-years because it’s too costly.

(Thanks, Kotaku)

Read MoreRead More