Episode 658: Sony’s Call

Sony’s in the news again, but not in a positive way. Meanwhile, a classic game may be remastered and bitcoin fraud continues to be a problem.

  • Indonesia has blocked Steam, Epic Games, PayPal, and more
  • Sony doesn’t sound thrilled Microsoft is buying Call of Duty maker Activision

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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?

Nintendo Takes Yet Another Month in United StatesNintendo Takes Yet Another Month in United States

The holiday season is over, the NPD sales data for January 2008 is in and we see a common theme: Nintendo rules the show. While Sony continues to try and persuade gamers that the PlayStation 3 is in a completely different gaming category, statistic gathering companies like NPD put ’em all in one big basket.

wiifitIt makes sense for Sony to try to push themselves away from being classified with the Wii console because it makes them look bad. We’re all equal gamers here, there is no need to break into more sub-categories when only three consoles vying for top spot. Many folks (including us) criticize the slow adoption rate of Wii games, yet they steal top software sales spots as well.

  • Wii — 679,200
  • Nintendo DS — 510,800
  • Xbox 360 — 309,000
  • PlayStation 3 — 203,200
  • PlayStation Portable — 172,300
  • PlayStation 2 — 101,200

Thankfully Sony’s PlayStation 3 product took top spot on their hardware list, so that’s not so bad. Sadly, combining all Sony’s hardware still doesn’t meet the units of the Wii.

On the software sales front, Nintendo took six of the top ten positions including position’s one, two and three. Wii Fit takes number one position with an insane 777,000 units sold. The only closest product to Wii Fit was Wii Play (still!) with 415,000 units sold. Place four was held by a 360 title, Left 4 Dead sold 243,000 units.

Although many gamers haven’t turned on their Wii in ages, there is no doubt the market is red hot for Wii. At this point, we’re all wondering how long it will last — any predictions? It’s already been a long time.