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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One of the great downfalls of an acquisition or merger, in the game industry, is the loss of great franchise titles. Sierra, or Sierra Online, once stood on its own as a company with great gaming titles but later fell into the depths of Hades under many different company names.

Sierra’s last stop on the acquisition highway was Vivendi, years after much of Sierra’s steam had slowed. Now, they’re part of Activision Blizzard so we had high hopes they’d find a great use for some of the old Sierra properties long since collecting dust. Space Quest, Kings Quest, Leisure Suit Larry and especially Gabrielle Knight were some of our favorites, but times have changed.

“We are retaining only those franchises that are a strong fit with our long-term strategy including Crash Bandicoot, Ice Age and Spyro, as well as Prototype and a second game that has not yet been announced. We will not publish any other titles that previously were part of the Vivendi Games portfolio and we are currently reviewing our options regarding those titles,” says Activision Blizzard (joystiq)

This is unfortunate news, Activision Blizzard now has a large set of franchises on their hands, many of which have collected dust for years. Those dust collecting franchises could rise from the dead and reinvigorate their old fan base… or be dropped to the earth as unwanted scrapes after a big hunt with the vultures awaiting their take (sorry, too much watching of Animal Planet)

A reworked Kings Quest or Gabriel Knight could have seriously awesome potential in this time and age, imagine a dark comedy version of Gabriel Knight or a huge scaled world in King Quest using todays graphic engines. Although, these titles could also go the way Atari has gone and taken a well remembered franchise and made mud of its great name (*cough* Alone in the Dark).

Unfortunately, we’ll probably never know the distance an old franchise could go in this new world. We’ll have to pull out an old copy of our prized posessions and remember just how great they once where.