Little Big Planet To Sell Consoles

Much like Metal Gear Solid 4, Sony is looking for LittleBigPlanet to move consoles from the shelves because all types of gamers are going to want this title. Personally, the desire to want and the stronger feeling of need are two separate problems; everyone will want the game but many will need to buy a PlayStation 3 for MSRP.

Although the prices are slowly dropping for a PS3 unit, hardcore gamers are the ones that will rush out and spend a bundle of money for a console just to play one game. If not hardcore gamers, fans of the franchise (MGS4 for example) and LittleBigPlanet is still working on building a fan base for their new franchise.

The platformer LittleBigPlanet, for many, isn’t worth $399 plus the price of the game. That’s asking a lot, but Sony still thinks it can happen:

It’s going to be a hardware seller. Not only do you have the platforming experience that a lot of other games will have, you have this creativity that really is exclusive to LittleBigPlanet. (kotaku)

Would you run out and get a PS3 for LittleBigPlanet? I’m tempted, but that $399 barrier is truly a large obstacle to clear.

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Sony to Testify In Person Re: PSN OutageSony to Testify In Person Re: PSN Outage

Sony will finally be sending a high-level executive to testify before the US House of Representatives’ Committee on Energy and Commerce’s Subcommittee on Commerce, Manufacturing, and Trade on the three week outage of PlayStation Network and Sony’s slowness in informing its customers on the compromising of personal and credit card data.

Ken Johnson, an aide to subcommittee chairwoman Mary Bono Mack (R-CA), told The Atlantic Magazine that Tim Schaff, president of Sony Network Entertainment, would testify before the subcommittee next week:

“While Chairman Bono Mack remains critical of Sony’s initial handling of the data breaches, she also is appreciative that the company has now agreed to testify. The Chairman firmly believes that the lessons learned from…the Sony…experiences can be instructive and guide us as we develop comprehensive data protection legislation. We expect to introduce that legislation, which will provide new safeguards for American consumers, in the next few weeks.”

Previously, Sony’s Kaz Hirai had only sent his testimony in a letter to the Committee.

Sony, What Doesn’t Kill Them Makes Them StrongerSony, What Doesn’t Kill Them Makes Them Stronger

David Reeves, Sony Europe’s President said, “we simply have to suffer a little” when talking about the PS3, Europe and the competition. He was talking specifically about Sony’s loss of market share, mind-share and overall performance in the latest competitive console arena. While Sony’s president dismisses Nintendo as in a separate market, David Reeves said, “we’ve learned from Nintendo how to grow the market and move from hand-held device to device – they’ve done it brilliantly.”

Buster Douglas Takes Down Mike TysonWhat Sony may be dealing with is the fact that they’re not top dog in the latest battle for consoles. Europe has taken to the PlayStation 3 better than the United States and they’ve got plenty of fans in the region. There has been a recent upside to it all, some light at the end of the tunnel:

“PS3 games sales are up 53% and there’s a healthy 1.1m pre-order book for Killzone 2, the first of a new batch of IPs that Sony will be counting on.” (guardian.co.uk)

Although it’s reported the PSP says are down 15% and PS2 software sales are down 51%, at least the PlayStation 3 is filling in the gap for some of those losses. At some point you’d expect the PlayStation 2 to decline, gamers are probably migrating over to the new hardware.

They’ve got some things to be proud of:

  • PlayStation Network increases revenues by 200% in 2008
  • 55% of all PlayStation owners are on PSN
  • 17.5 million PSN subscribers
  • 53% rise in software sales on PS3
  • Won HD format war

Unfortunately PS3 sales were down last quarter by about 9%, perhaps a response to the harsh economic times. And, of course, the fact that Sony’s VP’s are constantly defending their position in the market is a bit disconcerting. As David Reeves said:

“It’s like Ali v Foreman – go eight or nine rounds and let him punch himself out. We’re still standing, we’re still profitable and there’s a lot of fight in us. I don’t say we will land a knockout blow, but we’re there and we’re fighting.” (guardian.co.uk)

Sony is playing the defensive, guarding themselves against the punches of the competition. Nintendo making headlines for sales, Microsoft coming out of nowhere to try to build market share, while Sony holds out for the tenth round to win it in the end? We’re not yet sure if it’s Ali vs. Foreman or if Microsoft is the next Buster Douglas.

(Thanks, Guardian)

PlayStation 3: Not About Quantity, About ProfitabilityPlayStation 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?