Activision CEO Says $199 Consoles Necessary

by Carlos Bergfeld, Nov 28, 2007 11:49am PST

Related Topics – Activision, Games: Console

Although Nintendo's Wii console has already seen fairly substantial consumer adoption, Activision CEO Bobby Kotick said recently at the Reuters Media Summit that even the Wii will need to drop in price before it hits mass-market appeal.

"In the next 24 months they all will need to be at that $199 price point, and you can imagine Nintendo will be down to the $129 price point over the next few years," Kotick said.

Kotick said the Wii's early success despite being relatively underpowered is indicative of its low $249.99 price trumping technological advances in the eyes of the consumer. The lowest priced Xbox 360 model sells for $279.99, while the cheapest PS3 comes in at $399.99.

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Comments

8 Threads | 23 Comments

#1

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By: zerog83 x Show Full Post

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I'd be willing to bet it's not $250 - $400 consoles keeping video games from hitting mass market appeal, but high prices on the games themselves. Anyone who purchases a console, does so knowing that over the useful life of that system (generally 5 years) they will most likely spend that amount of cash on games and peripherals alone. I've definitely spent at least $500 on my XBox 360 games/controllers, and probably over $1,000 on PlayStation 2 games and periphs.

Nov 28, 2007 12:09pm PST

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I'd be willing to bet it's not $250 - $400 consoles keeping video games from hitting mass market appeal, ... : zerog83
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  i was about to say the same thing. the whole $60 games or $70+ for a collectors ed. is what keeps my from... : X-GOUKI
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    If you use a life argument, take a look at the price of a game. You are paying $60 for something you wil... : vertigo2x
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      How many games offer 40 hours these days? Especially with multiplayer being somewhat limited (in my opin... : valael
      
      I'm with the parent. I picked up a certain Wii game that will remain nameless (WW2 shoot) earlier this ye... : steauengeglase
- I don't think that's entirely right. I think the way the Wii hardware is selling out while most of the ga... : maddy

#12

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By: mrwolf710 x Show Full Post

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Whatever you think of the guy it doesn't matter, he is still right. You tell an average non-gamer the price of a 360 and Ps3 and they'll laugh at you. The Wii is slightly better but it's still a stretch for what it does. I fucking love games but I have yet to get a 360 or a Ps3 and the price is what's stopping me. It's just too much.

Nov 28, 2007 1:09pm PST

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Whatever you think of the guy it doesn't matter, he is still right. You tell an average non-gamer the pr... : mrwolf710
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- I agree, for most people the consoles are still much too expensive. Current hardware sales are nothing co... : House
- Agreed. I'm not willing to pay $400 for a 360 only to have it break down in a year or buy a PS3 only to h... : jtthe2nd

#20

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By: gyokuro x Show Full Post

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$199 consoles and $60 games....

Nov 28, 2007 4:48pm PST

$199 consoles and $60 games.... : gyokuro

#8

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By: cetra00 x Show Full Post

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Is this the same Activision CEO who as nearly run the company into the ground?

Nov 28, 2007 12:30pm PST

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Is this the same Activision CEO who as nearly run the company into the ground? : cetra00
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- Reuters says he's been CEO since 91 : deveus1
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  http://finance.yahoo.com/q/bc?t=my&s=ATVI&l=on&z=l&q=l&c=erts Hardly running the company into the gro... : 00kewk00
  - Yep. 1200% in 10 years. : vertigo2x

#14

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By: richcz3 x Show Full Post

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Activision is riding high right now with COD4 and Guitar Hero 3 sales raising their share value
What to do for COD5-6-7 and Guitar Hero 4-5-6?
Activision like other publishers (EA) know that sequels aren't forever with the exception of a few.

The costs of next gen development and cross platform support are spiraling upward and the installed base of 360 and PS3 may be unsettling. The simple idea is that making the consoles cheaper will broaden their purchase appeal. Yes and no. Its at best a short term fix. MS and SONY are already choking in red ink, so publishers will need to figure their own way out.

The Wii is selling out everywhere a year after release but 3rd party developers for the Wii are taking it in the shorts. Their games aren't selling.

Nov 28, 2007 1:32pm PST

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Activision is riding high right now with COD4 and Guitar Hero 3 sales raising their share value What to ... : richcz3
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- Microsoft's Game division will easily turn a profit this year. IT has also claimed the console will be i... : vertigo2x

#2

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By: Deathlove x Show Full Post

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Although Nintendo's Wii console has already seen fairly substantial consumer adoption, Activision CEO Bobby Kotick said recently at the Reuters Media Summit that even the Wii will need to drop in price before it hits mass-market appeal.

I must have missed the part where it's been hard to impossible for the last eighteen months to find a Wii on store shelves.

Also, saying in the next 24 months they'll be at $199 is foolish - in 24 months, the 360 will be four years old, and odds are the 360 II or 720 or whatever will be on the horizon, and $199 will be for "last"-gen.

Nov 28, 2007 12:09pm PST

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Although Nintendo's Wii console has already seen fairly substantial consumer adoption, Activision CEO Bob : Deathlove
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  I don't know. I bet we'll see another Nintendo console before another Sony or MS console. The Wii didn't ... : Sturm08
  - MS claims a 5 year life on the 360. If they treat it the same way as Xbox 1, the system will be pretty mu... : kodt

#5

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By: pyide x Show Full Post

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*mass market adoption*

i thought the wii already outsold the 360?

Nov 28, 2007 12:22pm PST

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*mass market adoption* i thought the wii already outsold the 360? : pyide
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- Mass market doesn't necessarily just mean "more than another competitor". Compared to other forms of medi... : deveus1

#4

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By: dantastic x Show Full Post

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why would wii need to drop in price? people are still lining up around the block to play a system with under 10 debateably worthwhile games

Nov 28, 2007 12:21pm PST

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why would wii need to drop in price? people are still lining up around the block to play a system with u... : dantastic
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- 3rd Party Publishers want as many people to have the console as possible, so that more of their games can... : Sturm08

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