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The largest videogame publisher Activision, is threatening Sony to stop developing software for the PlayStation 3, unless the company drops the price of the console. According to Activision’s CEO Bobby Kotick, if the PS3’s price point stays at the current $399.99 price tag, then the publisher believes the attachment rate of games sold will slow down. “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,†Kotick said. “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.â€
Well this is true about the Xbox 360, I can’t say for sure but I believe the Wii is the total opposite of the PS3. While the Wii has sold what seems like an endless amount of systems, customers who buy the console are known for not purchasing many games along with it. And when they do, it is generally a Nintendo first-party title. Although, it is cheaper (and easier) to develop on.
Bobby Kotick went on and talked about how Sony must cut the price of the PS3 and if they don’t, Activation might have no choice but to stop developing titles for the console. “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.†He was then asked when we could see this happen, his response; “When we look at 2010 and 2011, we might want to consider if we support the console — and the PSP [portable] too.â€
After the jump, read what analysts and even Sony are saying about Bobby Kotick threat.
Wedbush Morgan’s Michael Pachter has chatted with vg247 about what Kotick is saying. According to Patcher, Activision is just trying to exercise their power in the industry, but they wouldn’t really stop supporting a system with 22+ million units sold. “Of course Bobby’s bluffing, and good for him,†said Patcher. “I think Bobby’s obviously interested in Sony selling as many PS3s as they possibly can, and he’s not happy with their penetration so far. I think he favors a price cut, and would rather see one sooner than later.â€
What does Sony think of this? Well so far, not much. “We respect our third-parties’ opinions and their right to express those opinions but we will not be commenting on this story,†said a SCEE representative.
Personally, I would agree with Michael Patcher on this one. Again Sony has sold about 22 million units, which is only about 7 million less than the Xbox 360. And remember, the 360 was released a year before the PS3’s launch. So even those numbers are a little skewed. And why the company choose either 2010 or 2011, is beyond me. Honestly, do they really not think a price cut will happen before those dates? I think this is all about now and not the future.
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