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Your email address will not be published.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 424: Awaiting ApocalypseEpisode 424: Awaiting Apocalypse

The gang discusses the just-released Captain America: Civil War as well as mention the upcoming X-Men: Apocalypse film, but they also do get into this week’s news, which is heavy on the Nintendo side.

The news includes:

  • Nintendo NX cartridge rumors abound
  • Fallout 4 Xbox One mods enter beta after May 19
  • Zelda anchors Nintendo E3 plans
  • Battlefield 1 and Call of Duty: Infinite Warfare debut this past week

This week’s Question of the Week is “What era war would you like to see in a shooter?”

Episode 344: Origin ProblemsEpisode 344: Origin Problems

In this episode, Jonah complains about Origin and his inability to play Dragon Age: Origins, while a heated discussion between Jonah and Paul occurs over various topics, along with discussion of Frozen. Jordan discusses his son’s college tuitions as well. This week’s Gaming Flashback is the coin-op arcade game Wizard of Wor.

This week’s news items include:

  • Sony PlayStation honcho Jack Tretton stepping down
  • Disney Interactive cutting about 700 jobs
  • New Xbox Live updates coming in April
  • SimCity gets offline play today
  • Report: Microsoft working on augmented reality headset for Xbox

This week’s Question of the Week: “Ever purchase new games for an unsupported console?”

Sony Home Arrives This YearSony Home Arrives This Year

From the horses mouth, Home producer Martijn Van der Meulen “100% guarantees” PlayStation gamers will have the infamous Sony Home before the end of this year. He didn’t, however, mention what defines Sony Home as a finished product. Perhaps just the shell of a social gaming network frame or a fully fleshed out product.

Most social network sites are constantly “works in progress” so we’re guessing Sony Home won’t be finished but it will be available or “shipped” if one could call it so. The trick comes down to the punch-list of features which nobody has seen; all we’ve got to go on was the 2007 GDC announcement of Home and all of its “rich features.”

The product has been delayed a few times now, chances are good the punch-list of features will be smaller than initially announced. It will no doubt be a work in progress for years to come… if anyone cares to use it.