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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Hopefully Microsoft is doing some last minute testing to make a more reliable presentation of online co-op which everyone can use. However if it releases with a bunch of bugs…

(Thanks, GameSpot)

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Famitsu Magazine is reporting the Nintendo console, Wii, has managed to sell 7-million units in Japan. This is roughly three times the number of Sony’s PlayStation 3, the console with superior graphics and power.

Japan isn’t about graphics and power or they’re not a fan of the high priced PlayStation 3. The three times factor seems odd, still, considering the PS3 isn’t three times the cost and really isn’t that bad of a console. Unless the titles on Japan’s console are just not as inviting, the PS3 should be keeping pace with the tiny Wii console. Sony is a Japanese company as is Nintendo and both have a very good grasp of the games the Japanese culture is attracted to buying. What’s happening here!?

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