Sony Favours Profit over Marketshare

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Highvalue The PS3 is the three-legged horse in this generation’s console race – last out of the gate, it’s constantly fallen behind it’s competitors. The 360? Yup. That’s sold more units.
The Wii? That’s sold PLENTY more units. Does this bother Sony? Not so according to SCEA’s Senior VP of Marketing Peter Dille.

“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.”

The Japanese Sony Overlords really don’t want to exercise that price cut, do they?

No, seems Sony are quite content to keep advertising that 10-year strategy of theirs.

"We also have to work hard to gain our consumers’ trust and make them comfortable that when they buy a PS3, it’s going to stand the test of time. The fact of the matter is we’re the only console manufacturer that’s ever launched a product that’s had a 10-year life-cycle. And we’ve done that now not once, but twice. One of the great things about the PS3 is that if you buy it today you can be confident it’s going to be the centerpiece of your entertainment for the next 10 years. Economically, that’s a great value."

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"Yes, in tough times people think twice about discretionary spending, but we also know people spend for value. They are looking for things that will last before they spend the money. We believe that plays right into our strengths."

Source : Gamedaily

Last Updated: March 20, 2009

Geoffrey Tim

Editor. I’m old, grumpy and more than just a little cynical. One day, I found myself in possession of a NES, and a copy of Super Mario Bros 3. It was that game that made me realise that games were more than just toys to idly while away time – they were capable of being masterpieces. I’m here now, looking for more of those masterpieces.

  • spl0it

    Just marketing Spin, I heard the ps3 sucks though :kissing:

  • Q121

    I bet Sploit has a secret PS3 fetish…… :w00t:

  • Darthdad

    “We also have to work hard to gain our consumers’ trust and make them comfortable that when they buy a PS3, it’s going to stand the test of time.”
    Typical Xbox bashing from Sony. RROD this RROD that! :ninja:

  • ewie

    So why did Sony launch a console at $600 which cost them 800$ in the first place if they were looking at profit. ?

    I still remember words spoken about getting a second job, seems like jobs have dried up and so the sales as well.

  • janrik

    Yeah that second job comment was so arrogant…

  • Rap7a

    Aren’t they still making a loss with each console?

  • ewie

    Most likely but they should be very near break even now, as they are moving to the 45nm chips. So a console sold and 4 or 5 games per console should be break even now.

  • NATO

    “stand the test of time” yea right, my PS3 died after 13 months (BD drive failed) and the replacement is also giving me problems.

  • @Nato ,what model PS3 was it? 40gig? Or a BC model? Its interesting. . .sony say they have a less than 5% failure rate but but between people I know. .it seems like its closer to 15% . .maybe even more.

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