Responding 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 don’t know, maybe [Kotick] should design a platform," Tretton suggested.