Activision CEO Bobby Kotick has predicted that the slowing economy will put pressure on console manaufacturers to lower the price of their machines.

He said that the rising cost of living could render £200-plus hardware a thing of the past, as consumers tightened their belts.

Speaking to Reuters, Kotick said:

"With the rising costs of fuel and food and housing, it is more difficult to go out and buy a $399 console, and I think it's going to put pressure on the console manufacturers to reduce their prices.”

Last year, Kotick told Reuters that, in order to grow the games industry, consoles had to hit a $199 (around £100) price tag within two years.