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Your email address will not be published.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

Wii vs. PS3 in Japan: The Console SlaughterWii vs. PS3 in Japan: The Console Slaughter

Famitsu Magazine is reporting the Nintendo console, Wii, has managed to sell 7-million units in Japan. This is roughly three times the number of Sony’s PlayStation 3, the console with superior graphics and power.

Japan isn’t about graphics and power or they’re not a fan of the high priced PlayStation 3. The three times factor seems odd, still, considering the PS3 isn’t three times the cost and really isn’t that bad of a console. Unless the titles on Japan’s console are just not as inviting, the PS3 should be keeping pace with the tiny Wii console. Sony is a Japanese company as is Nintendo and both have a very good grasp of the games the Japanese culture is attracted to buying. What’s happening here!?

“The Wii’s 7 million sales put it far ahead of its foes in the ongoing console conflict in Japan. According to Enterbrain figures quoted by GameDaily, Japanese sales of the PlayStation 3 numbered just 2.37 million units as of September 30, when the Wii had sold around 6.83 million units in the territory. Sony estimates the PS3 sold nearly 17 million units worldwide by the same date.” (gamespot)

The Xbox 360 still can’t compete against the PS3 or Wii in overall numbers, regardless to boosts when they put out a game the Japanese actually find interesting. If Microsoft and Sony learn anything from this generation of consoles, it’s that simple makes better. No, we’re not telling the developers to end the goals of hardcore gaming… we’re just wondering if branching out a bit to scoop up some casual gaming interest.

Read MoreRead More

Xbox 360 Price Cut Leads To 100-Percent Sales IncreaseXbox 360 Price Cut Leads To 100-Percent Sales Increase

Why release a single block buster game with a two week pop when you can simply lower the price of your console and boost sales by 100%? That’s a question Sony may be asking themselves right now, as Metal Gear Solid 4‘s hype may have lasted years but the sales and console unit sale boots lasted a month.

Gamers show how they feel about costly consoles with their wallet. With 100% increases in sales, it’s clear that many gamers have been holding out from the “next-generation” of consoles because the price was too high. Now, Microsoft can report huge sales numbers this quarter with a special thanks to their price cut. Imagine the sales boost the PlayStation 3 would have if it was competitive in price?

Microsoft could have kept the savings of manufacturing costs to themselves but they chose to pass savings onto the consumers. The increase in unit sales means more households own the product and newly released games will probably see larger spikes now that people have invested in the 360 console.

End result, developers will want to produce games for the Xbox 360 because they’ve got a larger audience and publishers will be less likely to pick Sony as an exclusive because the 360‘s got sway in the market. It might not be a Wii in total sales records but it’s not half bad!

(Thanks, gamasutra)

Read MoreRead More