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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Xbox 360’s Fallout 3 Not Safe From PiratesXbox 360’s Fallout 3 Not Safe From Pirates

Just last week in our gaming podcast we were talking about how Gears of War 2 wasn’t going to make a PC debut because it has a bit of a problem with piracy. We were afraid this movement was going to cause game developers and publishers to stick with console’s “big can of DRM” over the PC for many future releases.

Turns out, Fallout 3 was stolen before it was announced as finished and has begun to show up on torrents around the Internet. This, of course, has lead folks to believe the leak took place at the manufacturing plant given the obvious circumstances behind the event. Sure, the title could have been leaked at the developers studio, but who would want to cause their products sales to suffer? Perhaps a hacker broke into the studio and stole the raw images?

There are plenty of possibilities, but the fact of the matter is this is the “DRM” console version of the game. It has been stolen and downloaded by thousands of people who are going to actually take the time to make it work on their ‘tweaked’ console. Just when we said “it’s too hard to hack the Xbox 360 and its games,” some pirate comes out and does it!

While the pirates set sea with the glorious booty that is Fallout 3, Bethesda’s staying hush about the incident for now. In odd timing, Ubisoft came out, prior to this event, talking in respect to Tom Clancy EndWar saying:

“To be honest, if PC wasn’t pirated to hell and back, there’d probably be a PC version coming out the same day as the other two.” (gamasutra)

Perhaps, the pirates want to bring some attention to the console market in terms of piracy so developers continue to produce PC titles? If nobody is safe, there will be no one safe-haven console to run to when pirates are stealing “potential sales.”

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Xbox 360 Silver Accounts, Free XBL Cross-Platform GamingXbox 360 Silver Accounts, Free XBL Cross-Platform Gaming

Microsoft has announced they’ll be giving Xbox Live silver accounts access to play some multi-player cross-platform games for free until the fall update. Recently, Microsoft announced free online play with Games for Windows titles, effectively giving PC gamers “gold accounts” to play online.

Most people agree the move to give gold subscriptions to PC gamers was done because PC gamers don’t care to play Games for Windows games online if they have to pay for it. The culture of PC gaming is much different than console gaming on XBL, gamers expect the online experience at no cost; they’re already paying an ISP for network access, paying for a match-making system with a yearly subscription is not desired.

Console gamers don’t have a choice, buying the 360 experience arrives with simple to play games (no drivers, no installs) but limited online choices: pay or go away. Now, silver members will get a little taste of network play, along side PC gamers in the cross-platform Games for Windows titles.

“Supported cross-platform titles include Universe at War, Shadowrun, and Lost Planet: Colonies Edition.” (gamespot)

We question the intention here… is this as a good faith move or are they wetting people’s appitite for XBL so they’ll want to upgrade to gold in the fall? Or, maybe there are some logistical reasons to doing this in the Xbox Live infrastructure to prepare for upgrades where making it free solves a few of their internal upgrade paths and, as a side effect, gives gamers some games to play.

Of course, we’ve seen few people playing Shadowrun or Lost Planet lately. Maybe this will re-popularize a few older titles as well.