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Sony interested in profit, not market share

Posted on Friday, 20 March 2009 by Speed, source: Gamedaily
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For all those hoping at a price drop of the PS3, Sony's Peter Dille has made the company's strategy clear: they're interested in profit, not market share.

"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. We've had a very successful year; we had record revenues across our three platforms last year, and our PS3 business was up 40 percent, notwithstanding the tough climate. So we've really focused on changing the conversation away from price and trying to communicate the value inherent in the PS3."
A very solid strategy at the moment with the current financial state of the entire world.
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3 Comment(s)

Anonymous

Anonymous

A very solid strategy...if your strategy is to minimize your market penetration and drive developers away.
A very solid strategy...if your strategy is to minimize your market penetration and drive developers away.
Quote
Posted on 01:29, March 21st 2009
NINJAFISH

NINJAFISH

Its true that it wont help increase their market share, and will then cause developers to move to other consoles or atleast port the games to console/pc. But I'm not sure Sony is in a position to do a price cut. Since the PS3 was launched they have taken a huge loss on every console sold.

Now that the price they are selling it for covers most of the cost to make the console they dont want to drop the price and take the huge hit again.
Its true that it wont help increase their market share, and will then cause developers to move to other consoles or atleast port the games to console/pc. But I'm not sure Sony is in a position to do a price cut. Since the PS3 was launched they have taken a huge loss on every console sold. Now that the price they are selling it for covers most of the cost to make the console they dont want to drop the price and take the huge hit again.
Quote
Posted on 05:26, March 21st 2009

Anonymous

This comment has been removed.
Posted on 06:58, April 01st 2010
 

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