Activision CEO's Price Drop Suggestion Inappropriate, Says SCEA CEO

15
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 donÂ’t know, maybe [Kotick] should design a platform," Tretton suggested.

Chris Faylor was previously a games journalist creating content at Shacknews.

From The Chatty
  • reply
    December 17, 2007 11:56 AM

    well of course Sony wouldn't suggest lowering the game prices since they'll see a cut of those profits to recoup their ridiculous hardware losses. Activision on the other hand wants as many potential customers as possible so they'd rather see the hardware go down in price. Is Microsoft going to complain about this?

    • reply
      December 17, 2007 12:00 PM

      Microsoft probably doesn't mind since they're surely going to be able to get down to $199 before Sony does. That's not to say they'll actually get there in under two years (at least the real 360, not the hard drive-less one), but it's possible and more feasible than PS3 so I doubt they'll speak up.

    • reply
      December 17, 2007 12:01 PM

      It would be nice if both Sony and Microsoft had issued a response together, but somehow I doubt that will ever happen. Ever.

      • reply
        December 17, 2007 12:30 PM

        It would have been nice?

        • reply
          December 17, 2007 1:46 PM

          you know... in a 'we are the world' kinda way... they could get together and sing a song with Michael Jackson... hold hands... it would be GREAT!

Hello, Meet Lola