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Your email address will not be published.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

Guitar Hero: On Tour – 300K Units SoldGuitar Hero: On Tour – 300K Units Sold

The little DS title Guitar Hero: On Tour arrived with a hand-held attachment for playing guitar on the go. Some reviewers found it cramped, annoying and too damn small to really feel any comfort. Other reviews found it exciting, fresh and a break from standard DS games.

Reviews aside, 300,000 people are willing to bet money that the DS title was going to rock the house. The concept hit the mark for the DS because the game system is for on the go “touch and feel” style games; Guitar Hero: On Tour is definitely a touch and feel game.

Although we’ve not played it, we’re not too surprised that 300k people purchased the title, considering the install base for the Nintendo DS device itself. With such a large install base, even if only 25% of the target audience buys into the product they’ll be rolling in the dough.

Will this inspire a Rock Band style ‘drum game’ for the future from the Activision competitors or was this nothing but a fluke?

(Thanks, GameSpot)

Read MoreRead More

Episode 475: Sterling ReviewsEpisode 475: Sterling Reviews

This week’s episode is 50% longer as the first 20 minutes or so are devoted to the reaction to Jim Sterling’s explosive review of Hellblade and his subsequent recanting later that day. This week has no Gaming Flashback or Gaming History, but there are six news items to make up for it.

The items include:

  • EA talks about Nintendo Switch support
  • Rainbow Six: Siege “Operation Blood Orchid” update launches August 29
  • Myth-inspired RTS Deadhold charges into Early Access later this month
  • No Man’s Sky “Atlas Rises” update adds story content and “limited” online co-op
  • EA says Star Wars: Battlefront “lacked long-term goals”
  • Moons of Madness is Lovecraftian horror on Mars

Let us know what you think.

Read MoreRead More

Sony’s Software Development Beta ProjectsSony’s Software Development Beta Projects

It seems we’ve seen a lot of great concepts from Sony for their PlayStation 3 product line but very little has managed to hit the software virtual shelves. We’ve heard of Sony’s Afrika for the PS3 back at E3 in 2006 and we’re looking at it for 2008’s holiday lineup.

We’ve heard about Sony Home for years as well, but that’s now in some type of beta. It was supposed to be an open beta but that didn’t seem to work out and now it’s closed beta only. Recently they pushed out a firmware update that bricked PlayStation 3 consoles or at least screwed up many of them in varying levels.

Are they just really bad at software development and road map predictions? As a hardware development company they’ve put out some hardcore products, stone cold stable in terms of design and efficiency from the Walk Man to the PS3. Their products are practical in design, for the most part, fairly pretty, stable and function as designed. Yet they come up short on software time and time again.

One of the contributors at 2old2play had some things to say about Sony’s development efforts:

“Having worked at Sony as a Creative Designer two years ago, it doesn’t surprise me that they have still yet to release Home. While there, I was working on their Station Launcher application which was supposed to be released in late 2006. However, the Launcher app is still only in Beta to this day.” (2old2play.com)

In many ways their the anti-Microsoft in their approach and commitments. While Microsoft ships hardware that has what must be a 60% failure rate Sony ships hardware which works fairly well. On the flip side, Microsoft publishes a large quantity of software for all their products and has done very well in the business. Nobody can say it’s 100% perfect but it tends to get better with age or, at least, grow on you.

(more…)

Read MoreRead More