Sony Want Profits, Not Market Share

Illustration for article titled Sony Want Profits, Not Market Share

This console generation, the PlayStation 3 is in dead last place. The Xbox 360 has sold more, the Nintendo Wii has sold a lot more. Does this worry Sony? Surprisingly, no, it does not.

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See, according to Sony Computer Entertainment America's Senior VP of Marketing, Peter Dille, Sony aren't focusing on market share. They're focusing on profitability!

I think it's already well publicized that we have a very clear objective from our parent, Sony Corp., that we're to focus on a profit objective, and with those marching orders it limits the playbook when it comes to pricing and promotion. Our competition had a very aggressive pricing strategy, but they also were packing two, three, four games in with the unit weekend to weekend with different retailers, and that cost a lot of money. So we had a profit goal and they had a market share goal.

"Gotta spend money to make money" jokes aside, note the wording of those first couple of sentences. Sounds like even SCEA want a price cut on the machine, and it's only the top, top brass in Japan that are holding out.

PS3 is 'Going to Stand the Test of Time' [GameDaily]

DISCUSSION

It's BS. No platform maker has ever made money off selling the platform.

They make money when publishers sell lots of games (because they take a share).

Therefore, huge install base + good games = profits

Song seems to think,

smallest install base + least amount of good games = profits

The only hope for them to get profitability is a price cut and some killers games, which they might just have with Killzone 2, GoW3, Uncharted 2, and hopefully news on Twisted Metal.