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Your email address will not be published.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

Episode 374: Lost in a CrowdEpisode 374: Lost in a Crowd

This week’s episode of Gaming Podcast has a special guest co-host, Andrew Yoon, formerly of Joystiq and currently in card game and video game development. The Gaming Flashback is the one that started them all: LEGO Star Wars: The Video Game.

The slow news week includes:

  • DDoS service targeting PSN and Xbox powered by home Internet routers
  • Japanese console sales continued to slide in 2014
  • Evolve’s questionable bargain: pre-purchase to avoid the unlock grind
  • Sony delays PS4 in China

The Question of the Week: “What is your favorite, if any, LEGO videogames?”

Episode 369: Dragon Age MMO-StyleEpisode 369: Dragon Age MMO-Style

This week’s episode has Jonah annoyed at the gameplay decisions for Dragon Age: Inquisition, Paul discusses passwords, while the Gaming History is the cartoon Captain N: The Game Master.

This week’s news includes:

  • Valve lays out new rules and guidelines for Early Access developers
  • Xbox One console exclusive Ori and The Blind Forest delayed into 2015
  • Hackers claim to have raided PSN, 2K, Origin, Windows Live mail
  • GameStop & Nintendo: Game devaluation must stop

All this plus Listener Feedback and the Question of the Week: “What video game licensed cartoons have you enjoyed most, if any?”

Episode 403: Jam and the HooligansEpisode 403: Jam and the Hooligans

The episode is a day late, sorry about that, folks. In this episode, we wish Paul was with us to discuss what he thought of the release of Jem and the Holograms in theaters. The banter is strong, but not overstuffed like last week.

Lots of news this week, however:

  • Konami insists Hideo Kojima still works at company
  • 343 Industries not ruling out PC port of Halo 5
  • Rebellion rescues Kickstarter backers from GRIN’s bankruptcy
  • Classic car combat RPG Autoduel may be making a comeback with inXile
  • Pete Hines: Entire game not on Fallout 4 PC disc
  • Vivendi seeking more shares of Ubisoft, board seats

The Question on the Week: Do you prefer first person or isometric RPGs?