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Your email address will not be published.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 384: Homestar RuinerEpisode 384: Homestar Ruiner

This week’s episode has bad audio, but at least it’s short, due to Jonah’s lingering laryngitis. Paul insists Homestar Runner hasn’t been good in 15 years, while Jonah talks about the NES classic bomb Athena.

This week’s news includes:

  • Nintendo Virtual Store to start selling N64 and DS games
  • Tim Schafer recommends Broken Age players start over from the beginning
  • Silent Hills is officially dead

All this and Listener Feedback.

Episode 514: Red Dead AnticipationEpisode 514: Red Dead Anticipation

This week the guys have gotten back to talking about games from the past, as this week the Gaming Flashback is 2008’s Braid, Jonathan Blow’s influential indie game, which was followed by The Witness, which was… less influential. The guys also keep drooling over Red Dead Redemption 2.

The news items include:

  • Forza Horizon devs recruit staff for unannounced RPG
  • Hollow Knight comes to PS4 and Xbox One on September 25
  • Rumor: Halo 5: Guardians coming to PC
  • Red Dead Redemption 2 leaks tease Battle Royale mode

Let us know what you think.

Episode 558: End of a Decade of Videogames 2010-2019Episode 558: End of a Decade of Videogames 2010-2019

The last podcast of 2019 is also the last podcast of the 2010’s, as Jonah, TJ and Scott discuss the past year of videogames, while mentioning some of the news from last week, like the announcement of The Wolf Among Us 2 and the Xbox Series X. The last podcast is also the longest ever, clocking in at over 2 and 3/4 hours.

The Question of the Week: “What was your favorite videogame of the past decade?”