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?

0 thoughts on “PlayStation 3: Not About Quantity, About Profitability”

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Wolfenstein for PC, Xbox 360 and PlayStation 3Wolfenstein for PC, Xbox 360 and PlayStation 3

When you hear the word Wolfenstein what game do you think of? Constantly, I recall Wolfenstein 3D and all the memorable times I had building my first person shooter fingers. From a new-generation FPS perspective, Return to Castle Wolfenstein for the PC back in 2001 was my last touch on a Wolfenstein game series. I enjoyed it a great deal and would love to see more out of the game series.

It seems Activision and Raven Software are working on a PC, Xbox 360 and PlayStation 3 game, currently titled Wolfenstein set to be released “when it is done.” The game follows the same concepts as most of the Wolfenstein titles of the past, a bit of dark science fiction and undead matched with World War II settings with Nazi’s and the main character BJ Blazkowicz.

This series seems to be full of re-hash and repeat with plots, characters and overall feel. Developers seem to favor re-makes over sequels to the famous franchise, eventually putting out one or two sequels of their re-make hits well with customers.

Is this the correct direction for the Wolfenstein franchise? In my humble opinion, it doesn’t really matter to me because I’m such a fan of the series. Perhaps they will continue to re-make the game until the larger demographic screams “Not again!”

(Thanks, Eurogamer)

Xbox 360 Silver Accounts, Free XBL Cross-Platform GamingXbox 360 Silver Accounts, Free XBL Cross-Platform Gaming

Microsoft has announced they’ll be giving Xbox Live silver accounts access to play some multi-player cross-platform games for free until the fall update. Recently, Microsoft announced free online play with Games for Windows titles, effectively giving PC gamers “gold accounts” to play online.

Most people agree the move to give gold subscriptions to PC gamers was done because PC gamers don’t care to play Games for Windows games online if they have to pay for it. The culture of PC gaming is much different than console gaming on XBL, gamers expect the online experience at no cost; they’re already paying an ISP for network access, paying for a match-making system with a yearly subscription is not desired.

Console gamers don’t have a choice, buying the 360 experience arrives with simple to play games (no drivers, no installs) but limited online choices: pay or go away. Now, silver members will get a little taste of network play, along side PC gamers in the cross-platform Games for Windows titles.

“Supported cross-platform titles include Universe at War, Shadowrun, and Lost Planet: Colonies Edition.” (gamespot)

We question the intention here… is this as a good faith move or are they wetting people’s appitite for XBL so they’ll want to upgrade to gold in the fall? Or, maybe there are some logistical reasons to doing this in the Xbox Live infrastructure to prepare for upgrades where making it free solves a few of their internal upgrade paths and, as a side effect, gives gamers some games to play.

Of course, we’ve seen few people playing Shadowrun or Lost Planet lately. Maybe this will re-popularize a few older titles as well.

Episode 430: Audio IssuesEpisode 430: Audio Issues

This episode has some audio issues due to circumstances requiring Jonah to tape from outside in the NYC streets. Otherwise, this week’s news is Poke-mazing as some major issues hit the video game world this past week.

The news includes:

  • Valve’s Counter-Strike illegal gambling controversy continues
  • Red Dead Redemption sales jump 6000% after Xbox One backwards compatibility announcement
  • Pokémon Go raises security concerns among Google users

This is the contest’s last week. The Question of the Week is “How much is too much data to share with a game company?”