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Your email address will not be published.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 460: PAX East 2017 RecapEpisode 460: PAX East 2017 Recap

Jonah Falcon is finally back from PAX East 2017, and related his experiences at the convention. Somehow, T.J.’s musings on Dune and the origins of Mini-Me come up during the discussion. Among the games discussed are Snake Pass, Earthfall, Dauntless, and Yonder.

There’s also some news discussed:

  • Payday owner Starbreeze to publish System Shock 3
  • Switch stock and sellouts could be a problem for Nintendo

Let us know what you think and post in the comments!

Ensemble Studios To Close, Halo Wars Future Not In QuestionEnsemble Studios To Close, Halo Wars Future Not In Question

Ensemble Studios, owned and operated by Microsoft or, Microsoft Games Studios, has been targed to be dissolved. All employees will find new homes, a large quantity will start a new studio and continue maintaining the later released Halo Wars franchise.

Microsoft has chosen to close the studio as part of their growth plan of Microsoft Games Studios much like FASA was closed in the past. The difference, there is a new landing point for Halo Wars unlike the uncertain future of Shadowrun.

Commenting on the reason for the closure, Microsoft said, “This was a fiscally rooted decision that keeps MGS on its growth path. While the decision to dissolve Ensemble was not an easy one, Microsoft is working to place as many Ensemble employees who do not move to the newly formed studio into open positions within Microsoft as possible.” (gamespot)

Ensemble Studio’s folks will continue to work with Microsoft and will continue to support Halo Wars after its launch. It is important to stress their statement of continuing to support Halo Wars, there is no need to think the project will be done half-assed or without pride as the project will live on with a different studio name.

The only question is… what is causing Microsoft to close down studios with actively working real franchise projects? FASA went down, Bungie was let go on their own and now Ensemble Studios? There has to be something going on here… idea?

Xbox 360’s Fable 2: No Online Co-Op In BoxXbox 360’s Fable 2: No Online Co-Op In Box

Much like Kameo: Elements of Power, Fable 2 ships without online co-op mode on day-one. However, Kameo didn’t promise the co-op mode prior to the games release, or talk about it in their presentations and hype machine conferences.

How does that happen? It’s easy to promise a feature but words do not make games true. More than likely the online co-op was a bit more complicated or had some bugs that needed to be shaken out prior to shipping. Microsoft is talking about releasing a patch for the new co-op play on the first week or so of the game release.

There are two options: ship a product that’s buggy and deal with the online PR nightmare with bugs and day-one patches, or, ship it without the feature and promise it early in the launch phase of the game. Once the code is complete, game software has to go through the packing, duplication and shipping phase. A lot of last minute testing can get done in the time it takes to produce the boxed product.

Hopefully Microsoft is doing some last minute testing to make a more reliable presentation of online co-op which everyone can use. However if it releases with a bunch of bugs…

(Thanks, GameSpot)