Activision CEO says, "They have to cut the price..."
Long time Activision CEO Bobby Kotick had some very interesting things to say to UK based Times Online this week.
The CEO spoke very plainly and directly on his thoughts about dwindling hopes for the PS3 to compete with the Xbox 360. In effect, he says that unless something different happens, and happens soon, Activision will not find it as profitable to develop titles for the PS3.
“I'm getting concerned about Sony; the PlayStation 3 is losing a bit of momentum and they don't make it easy for me to support the platform. It's expensive to develop for the console, and the Wii and the Xbox are just selling better. Games generate a better return on invested capital on the Xbox than on the PlayStation,” Kotick said.
Is the PS3 set to slowly fade into the sunset? Playstation 3 console sales have been continuing to slide, falling roughly 25% this year, compared to last (source). Especially with the poor global financial climate, consumers are less inclined to buy an expensive piece of home electronics, no matter what it is. And even in Japan, which has always been Sony's strongest base, Xbox 360 sales are regularly out-pacing PS3 sales.
“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. . . in 2010 and 2011, we might want to consider if we support the console — and [even] the PSP too.”
But can Sony lower prices on the console? They have been losing money on each Playstation made, and production costs don't seem to be decreasing. And if you add these slowing console sales to the perceived added difficulty of developing games for the PS3, not to mention Xbox's Project Natal, you have a distressing situation for Sony.
What should Sony do? Re-engineer a less expensive model of the PS3? Or maybe thrown in the towel and concentrate on the Playstation 4? Or should they just try to secure some big exclusive releases to encourage hardware sales? Share your thoughts with the Internets in the comment section below.
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I can use my ps3 alot of things, i can go on the internet, go to youtube, stream media, share photos, watch blurays etc. Sure you can do this with a 360 but the ps3 does it in a much more elegant way. It isnt just a game console, its a home entertainment centre, and a damn good one for the price.
As for this Activision idiot, he must think that new buyers will mean more game sales. Sales are down because the cost of games is the highest it has ever been, and we are in the middle of a recession. If he truly wants to help the industry, Activision should take $10-$20 dollars off their new game prices. What? They don't want to do that? Didn't think so. I don't know how people like this get jobs.
What he wants to get is maximum profit by ripping all gamers off.
Sony PS3 can definitely survive without Activision, that's an undeniable fact.
Ultimately, why doesn't he stop making PlayStation 3 games and just perform own fellatio for more profits?
I have all 3 consoles, and i've gotta say the PS3 has impressed me far more than both the Wii and the 360 combined. The 360 has been marketed for casual gaming teenagers and fans of the shooter genre, unfortunately I'm neither. The PS3 is tailored to sell to the niche market gaming originally was, Die-hard gamers and techies. Their games are still akin to those of the days of old, and really i wouldn't have it any other way.
Activision is only saying what every company is thinking. There is nothing wrong with their logic; they are a business and they want to make money. A failed game that only captures a small percentage of a large market is still more profitable than a hit with a small user base. It is that simple. Sentimentality or virtuousness are irrelevant. If you feel they are ripping you off, then don't buy. I'm sure that will help make the decision for them.
The PS3 sold the same amount of consoles in 2008, the only reason it is behind the 360 in total sales is because the 360 was out a year prior to the ps3 launch. Id hardly call over 20 million users a "small user base" Let me guess moral, you own a 360?