Sony Aims its Cannons at Profitability, Sparing Microsoft’s Existence

February 23, 2011 Written by Jonathan Leack

Although NPD numbers have regularly been a cause for celebration at Microsoft, worldwide figures have consistently shown that the PlayStation 3 has been winning every yearly battle against its main competitor. After just four years, the PS3 has managed to come back within three-million units despite releasing more than a year later. With that said, both sides have seen their share of both success and failure, and when all is said and done, the purpose of the consoles is to create a profitable revenue stream for its manufacturer, and Sony is well aware of how important that is.

If you’re banking on Sony overcoming Microsoft’s 12-month head-start this generation, then you might consider that maybe you’re on a different page than Sony. Judging by a recent talk between IndustryGamers and senior brand manager at Sony, Scott McCarthy, success is dictated financially rather than winning what many call a “console war”. Scott McCarthy stated the following:

“…do we notice what Microsoft is doing? Obviously, they are our competition. But is it like we surpass Microsoft or we fail? No. Our goal is to be profitable and we’re going to achieve that this year and do even better next year.”

He continued:

“We have a very aggressive plan this year. And when we’re profitable we’re happy. If we happen to close the gap with Microsoft in the meantime, then that’s good too.”

Many have been speculating that a price-drop is expected for the PlayStation 3 this year, but the above statement seems to contradict that. Sony is currently selling a wealth of units and software, and while a cut in price would be the console equivalent of a dam water release, it would also lower the profit margin per unit sold. If the price is lowered then the consumer wins, so it’d be best if Sony aims for the almighty console war and keeps loading its cannons. After all, would 2011 be such an amazing year for gaming if Sony wasn’t put in such a difficult moment of competition?