Activision CEO's Price Drop Suggestion Inappropriate, Says SCEA CEO
by Chris Faylor, Dec 17, 2007 11:45am PSTResponding to Activision CEO Bobby Kotick's comments that Sony and Microsoft need to drop the prices of their respective systems to $199 within the next two years, SCEA president and CEO Jack Tretton has labeled Kotick's analysis as inappropriate and unwelcome.
"I would never venture to suggest what software publishers should price their software at," Tretton told The Mercury News. "I don't think it's appropriate for them to suggest what hardware should be priced at."
Tretton argued that with slimmer profits for the hardware maker, there would be no platforms to publish on in the first place, insinuating that Kotick's suggestion would result in further significant losses on the PlayStation 3 hardware.
In its last fiscal quarter, Sony's game division lost nearly $841 million as the PlayStation 3 hardware was being sold at a loss. The system has undergone a series of drops since it released last fall at $499 and $599, with the most recent introducing a $399 version of the hardware.
"I donÂ’t know, maybe [Kotick] should design a platform," Tretton suggested.
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Comments
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The Wii is the perplexing wild card and has been a consumer sell out for over a year. At its current rate, it could triple 360/PS3 HW sales by 2009. Developers (Activision) want many to believe that the price is a key factor in sales. Reality is price isn't a factor. In fact many developers like Activision know that 3rd party games sell poorly on Nintendo systems. Always have, always will. So it's not just a a matter of porting games to the Wii.
Be prepared to read CEO Bobby Kotick's 2009 message to shareholders on Activisions share slump. He'll point out the console price message and the 360/PS3 low market sales as a direct indicator.
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Not only that but they would have had a much higher amount of launch titles and those titles would probably have been much more polished to begin with and possibly been worth the $60.
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Sony shouldn't have responded.
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