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Your email address will not be published.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

Episode 222: Gorilla LoveEpisode 222: Gorilla Love

This week is a big episode, as it is chock full of surprising news this week, as well as some long, long reader mail. If that weren’t enough, we take a look back at the IntelliVision game Maze-a-Tron, deal with too much love for Paul, and the mystery that is the popularity of gorillas.

This week’s news includes:

  • Electronic Arts buys Popcap Games
  • Microsoft: Only Master Chief in Halo from now on
  • PlayStation Vita dev costs closer to PSP
  • Netflix takes aim at usage based billing
  • Expert glitcher hired to clean up Modern Warfare 3’s multiplayer
  • Skyrim ‘less confusing’, not ‘more accessible‘

There’s no Gaming History this week, but the Question of the Week is: “What old game do you most want to see remade?” There’s no contest behind it, but you can always take heart in the fact that your question was probably the most awesome.

Read MoreRead More

Rumor: EA Buying Popcap?Rumor: EA Buying Popcap?

Tech Cruch is reporting that Electronic Arts is about to acquire casual games giant Popcap Games for a cool $1 billion, which would exceed EA’s market cap by over 13%. If true, this would be EA’s definitive entry into the casual games market, a field they broke into 7 years ago.

Despite consuming a significant chunk of EA’s reserves. buying Popcap would bring them IPs such as Bejeweled, Plants Vs. Zombies, Peggle, Zuma and Bookworm.

We’ll keep an eye on this deal as it happens.

Read MoreRead More

Bethesda’s Hines: Don’t Shoehorn MultiplayerBethesda’s Hines: Don’t Shoehorn Multiplayer

Bethesda Softworks vice president of marketing Pete Hines is critzing publishers and developers who shoehorn multiplayer into their games that doing such a thing is “a waste of time” and advises, “Just drop it, don’t bother…it’ll make for a worse game.”

In an interview with Next Gen BIZ, Hines states that using online multiplayer as a tool to prevent used game trade-ins and rental simply doesn’t work, and robs developers of valuable man-hours.

Hines stated:

“(People ask us) for a game like Skyrim or Prey 2, why doesn’t it have multiplayer? Well, our question is always the opposite when we talk to a developer. If you’re doing multiplayer, why are you doing multiplayer? What are you trying to accomplish?

“If you’re doing it just to check a box or because every other publisher says you’ve got to have multiplayer, then just drop it, don’t bother, it’s a waste of time, a giant distraction and it’ll make for a worse overall game.

“We want the best game possible. If that’s a singleplayer game that’s 15 to 20 hours, then make that! Don’t waste your time on features that don’t make the game better.”

The Elder Scrolls V: Skyrim and Prey 2 are two Bethesda properties that will lack multiplayer, but one of the tools to encourage games to keep both games will be downlodable content and, even more important, good communications with the game communities and nurturing the fandom for both games.

Read MoreRead More