Activision CEO Says $199 Consoles Necessary
"In the next 24 months they all will need to be at that $199 price point, and you can imagine Nintendo will be down to the $129 price point over the next few years," Kotick said.
Kotick said the Wii's early success despite being relatively underpowered is indicative of its low $249.99 price trumping technological advances in the eyes of the consumer. The lowest priced Xbox 360 model sells for $279.99, while the cheapest PS3 comes in at $399.99.
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I'd be willing to bet it's not $250 - $400 consoles keeping video games from hitting mass market appeal, but high prices on the games themselves. Anyone who purchases a console, does so knowing that over the useful life of that system (generally 5 years) they will most likely spend that amount of cash on games and peripherals alone. I've definitely spent at least $500 on my XBox 360 games/controllers, and probably over $1,000 on PlayStation 2 games and periphs.
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I don't think that's entirely right. I think the way the Wii hardware is selling out while most of the games don't move too many copies is indicative of another problem not strictly tied to cost.
I've heard a bunch of non-gamers use phrases like "playing Wii" to mean playing Wii Sports. The idea of buying a discrete game is still a little weird for some folks. I think part of the issue is game stores being not-so-mainstream-friendly, which then puts huge importance on a game pack-in (e.g. Wii Sports). I don't think many of these people do think about what games cost, and how many games they'll buy over a console's lifetime. They buy a Wii, maybe they buy a Guitar Hero box, and that's their purchase.
While games certainly are too expensive, I think online distribution straight to the console will really shake things up.
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