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Activision CEO Steps Up His Calls For PS3 Price Cut

Added by Jeff Gerstmann on June 19, 2009

87 comments

Kotick, Robert A.

Activision CEO Bobby Kotick hasn't exactly been subtle about his desire to see Sony cut the price of the PlayStation 3. Today, he's trying to take that public prodding to a new level by telling UK-based Times Online that if Sony doesn't cut the price of its hardware, Activision may have to reconsider its support for the console.

Here are the relevant bits:

“They have to cut the price, because if they don't, the attach rates [the number of games each console owner buys] are likely to slow. If we are being realistic, we might have to stop supporting Sony.” Ask when and he says: “When we look at 2010 and 2011, we might want to consider if we support the console — and the PSP [portable] too.”

He also states that games on the Wii and Xbox platforms are providing a better return on Activision's development investments.

So where does this grandstanding actually lead? I'm willing to bet that it's not going to change a thing when it comes to Activision's future lineup. Even if the entire company starts to collectively view the PlayStation 3 as an afterthought (though some might argue that they already do), they're still going to be dumping money into Xbox 360 and PC development. And they'll still want to maximize the return on that investment... by porting those games to as many different platforms as possible. The relatively lower costs of porting that code to make it run on a PlayStation 3 probably aren't as harsh as Kotick's quotes make it sound, because it's not like Activision is out there making games exclusively for the PS3 or anything like that.

Put another way, they're already doing most of the work when they develop a game for other modern platforms. Not putting it on the PlayStation 3 probably isn't the huge cost-cutter that he's making it out to be.

Even if carried out to its fullest tantrum-like potential, the most you'd probably see would be a drop in quality on the PS3 versions of some Activision games, sort of like they were back at the platform's launch. It might also impact Activision's peripheral game market, since they have to go and produce PS3-specific versions of turntables, guitars, and skateboards. But even though Activision's PS2 games brought in more money than its PS3 games last year, it's not likely to want to toss out all of the $241 million that it brought in from PS3 game sales last year.

So he's bluffing.

Sony's been passing around a comment in response to the story. Here's Gamasutra's version of said comment, attributed to Sony's Patrick Seybold:

"PlayStation has tremendous momentum coming out of E3, and we are seeing positive growth with more than 350 titles slated to hit across all our platforms, including many anticipated games from our publishing partners. We enjoy healthy business relationships with and greatly value our publishing partners and are working closely with them to deliver the best entertainment experience."

What, you were expecting some kind of "we don't want Activision's money-making music garbage on our platform anyway" retort?

Filed under : Robert Kotick, Sony Computer Entertainment America, Activision

87 Comments

Death_Unicorn
on June 19, 2009

Gawsh, I wish Sony's comment would have been more along the lines of "PRICE CUT!"
Sadly, it wasn't

get2sammyb
on June 19, 2009

I've said all I have to say on this subject. I just think it's ironic that a company who earn their money extorting consumers over expensive peripherals finds himself telling another company not only how to run their company, but also to lower their costs.

Perhaps you make Band Hero less than $200 huh Bobby?

Ouroboros
on June 19, 2009

Main reason why I dont have a PS3 is exactly that - the price of the system and that most games that come out for the PS3 and XBOX, the Xbox has always looked better - you can trace this back to last generation as well, the Xbox 1 ports were always superior. I still have my PS2 and play it constantly but I dont think I could ever get a PS3 until the price comes down 100 dollars and they stop getting shoddy ports.

mook201
on June 19, 2009

It's funny to hear Activision ask for a price cut, when with titles like Guitar Hero, Tony Hawk: Ride, and DJ Hero they have no qualms about charging you over $100 for a videogame.

Champy
on June 19, 2009

yeah, i wish the ps3 was 300 or 250 here in canada, then i would maybe get it.

Crono
on June 19, 2009

"What, you were expecting some kind of "we don't want Activision's money-making music garbage on our platform anyway" retort?"

You know us all too well lol

Ouroboros
on June 19, 2009

@mook201: Its also the developing curve and costs of the system as well. Developing on the PS3 is much more difficult alltogether which prompts a lot of developers to half ass it or not do anything at all, like Valve who doesnt develop for the PS3. It may be a stronger system, or may not be - it is at least more complicated and frustrating that pushes a lot of developers away when using it.

Cerza
on June 19, 2009

It would be bad for Sony if Activision stopped supporting them, but on the other hand would a PS3 price cut really do anything? Almost everything is multiplatform today so for those who already own a 360 what is the point of getting a PS3? They can already play pretty much everything on the console they already have.

ChickenPants
on June 19, 2009

People fail to realise that 400euro for an 80gig ps3 is pretty good value.

GodzillaVsJapan
on June 19, 2009

Ps3's price point is why it is struggling as a gaming console compared to last generation which was a huge success. I myself bought a ps2 like many people when GTA: SA came out. At the time I believe the ps2 was only $200 now GTA is multiplat and the console is still ridiculously overpriced. Its hard to create a market for it when you don't have big selling exclusives and have a price which is substatially higher than all other gaming consoles

Ouroboros
on June 19, 2009

@ChickenPants: That's about 631 dollars Canada or 556 American - that's way too expensive even if you want to watch your Blueray movies. I dont want a Blueray player - I want a gaming machine with a Blueray player on the side as an extra, not the other way around.

Jeust
on June 19, 2009

@Ouroboros said:

" @mook201: Its also the developing curve and costs of the system as well. Developing on the PS3 is much more diffulcult alltogether which prompts a lot of developers to half ass it or not do anything at all, like Valve who doesnt develop for the PS3. It may be a stronger system, or may not be - it is at least more complicated and frustrating that pushes a lot of developers away when using it. "

True... and honestly comparing the great deal of overwork with the the profits, it gets a little complicated to bet strong on it.

clintlandon
on June 19, 2009

Is the word "momentum" Sony's safety word or something? I'm getting tired of them whipping that out every time their place in the game race is questioned. I want you to do well, Sony, but come up with something new to say. It's feeling stale.

Scooper
on June 19, 2009

I agree that Sony's gathered alot of momentum from E3.

ssjviviano
on June 19, 2009

Hey, isn't the PS3 the same price as the Xbox 360 Elite? (the only worthwhile SKU) And I'm with the other peeps when it comes to Activision's overpriced peripherals+game. Bobby Kotick needs to take his own advice.

TheHBK
on June 19, 2009

It just seems weird this guy is telling sony to lower the price when Sony is already losing money on Each ps3 sold, you cant just tell them to take a bigger hit. Also, he needs to shut the fuck up when he is increasing the cost for the band version of GH5 to 200 bucks now. There has to be something deeper to this because porting games is not that hard and always brings in a good ammount of revenue. So why is this an issue? Sony must have pissed them off somehow and pointing out low sales is a way to get back at them. But if Activision were to pull out, that would be a big blow to the PS3.

baller23
on June 19, 2009

Sony should have just knee'd Kotick in the crotch for making an absurd, sensationalist comment.

Ouroboros
on June 19, 2009

@ssjviviano: The 60 gig version for 299.99 is a much better deal IMO - but yeah, if you want another 60 gigs and your HDMI cables that's the way to go I guess, oh and a cool black case - yeah. but nothings wrong with the 299.99 SKU

Jeust
on June 19, 2009

@ssjviviano said:

" Hey, isn't the PS3 the same price as the Xbox 360 Elite? (the only worthwhile SKU) And I'm with the other peeps when it comes to Activision's overpriced peripherals+game. Bobby Kotick needs to take his own advice. "

In europe the ps3 80gigs is 100 euros more expensive than the elite version of the xbox360, as 400 > 300.

Sin4profit
on June 19, 2009

After E3 my interest in getting a PS3 has climbed ever so slightly from "you couldn't pay me to want this thing" to "i'm not gonna buy it at that price" ...it's a step up.

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