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?

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hdtvThe question of the day, “Do HD graphics matter to gamers?” If you’re currently rolling with a PS3 or Xbox 360 and you’ve got HDMI and or sweet component cables you’re probably saying, “duh, of course they do.” What about everyone else, those Wii consoles for instance, there are so many of those. What about gamers that do not know what HDMI means?

Let’s face it, an estimated 21-million people are still using over the air TV broadcast signal and a large portion of those think that their TV is high definition because it doesn’t have an analog dial anymore. Recent Nielson ratings are showing most gamers are still pushing PS2 hardware, which isn’t high definition.

In the US, HDTV sales only reach 25-30% of the population. Couple this with the fact that one in five HDTV owners can’t tell the difference between standard definition and high definition content and you’ve got roughly 20% of the population utilizing HD. Looking at the number of gaming consoles out there and the rate of uptake, it’s clear that a large majority of gamers are not using HD resolutions for their gaming needs. (loot-ninja)

We’d like to think 1080p looks much different than 480p but some people don’t seem to notice because, honestly, they just don’t care. We’d also like to think a PlayStation 3 buyer would be aware of the HD content and already have equipment at home to take advantage of the system. Although there are no solid facts to state otherwise, there must be a group of individuals that have purchased a PlayStation 3 and are rolling with SDTV (ghetto).

High definition graphics matter to people who want a true HD experience. Wii gamers don’t care about high definition because they’re focused on the game play environment or are just following the wave of hype and desire to own the infamous white box. The Xbox 360 gamers may go either way, a gamer wants to own the system because they can get a lot of cool new games for it secondary to the HD experience. The hot games just don’t get designed on the Xbox classic or PS2 anymore. We’d presume a PS3 gamer really wants to play a high definition game because the cost of the console is more and you’re getting a Blu-ray player all bundled into one.

HD graphics matter to us, we see the difference, respect the detail and use the HD portion of the console as an excuse for paying so much for the technology. The United States, as a whole, isn’t fully ready or equipped (mentally) for a full HD experience. When will they be prepared to experience high definition at its fullest?

My guess, five years after Nintendo makes the transition to 1080p. Nintendo is capitalizing on the “average Joe” and the average consumer is still catching up on the high definition. Hell, many gamers are still playing the dial-up game!

Maybe we need to start a new government funded orgnization: The No HD Left Behind Act. Everyone should be in HD.