News
Activision boss calls for console price cuts
Tim Ingham Jul 1 2008, 10:53am
Comments (5)
360, PS3 and Wii under fire as CEO calls hardware pricetags ‘prohibitive’ to new audiences
Activision CEO Bobby Kotick has talked of his fear that the cost of hardware in today’s market may be “prohibitive” to new customers.
Speaking to The Times, Kotick said that platform holders are “going to have to think about reducing their prices” – later revealing that he estimated the adult video games market to be worth around $45 million.
He said:
“It used to be the case that we did well during slowdowns because if you couldn't afford to go to the movies or to travel to a theme park, you stayed home and played a computer game.
"But now I think that the hardware manufacturers are going to have to think about reducing their prices because the cost of purchasing some of this stuff is prohibitive.”
In the same interview, Kotick put a price on the adult global video games market. He commented:
“I don't think that you need to have gratuitously violent products. But no company can afford to turn its back on a $45 billion section of the market. They are as important to the business as R-rated movies [restricted to 17 and older] are to films.”
Comments
“What about the games...”
Posted by: Dude! - Jul 1, 1:48pm
It's funny how he says they need to cut the price on hardware but says nothing about software. It's a two way street, if he says hardware pricing needs to go down... Then he should also definitely say that software should not sell for an average of $60 a game. But obviously saying that will not benefit his pockets.
“Re: What about the games...”
Posted by: jonny - Jul 1, 2:22pm
Yeah, I'm with Dude!. The price of games is just as prohibitive as consoles, maybe even more so. After all, you only really buy one console if you're Jo-Blo, but every gamer always wants more than one game, even the "casual gamers". Gone are the days of being happy with only owning one game.
“Re: Re: What about the games...”
Posted by: Zildjian - Jul 1, 2:31pm
Agree with everything so far. It's all too pricey these days!
“Re: Re: Re: What about the games...”
Posted by: teran - Jul 1, 2:41pm
i also agree with everything, the consoles may be high in price but the games will add up to way more than the game in the long run. 7-8 games is about the same price as a system. "It's all too pricey these days!" everythings to pricey. if ur in the US you should now that, our economy is free falling. were in a state of depression, where everything is 3-4 times more what they cost 8 years ago. while the average income an individual can make stays close to the same. this makes it hard for people to get luxuries, like a video game console, and games for that console.
“Re: Re: Re: Re: What about the games...”
Posted by: ka0znrky - Jul 2, 11:51am
Its funny how most hardware sells at a loss with it costing more to make the machine than it does to buy one while a lot of games are the opposite, we pay more for what can seem at times to be nothing more than a napkin idea that accidentally made its way to market.
If they lower the consoles prices ... again ... then more people will own one and there will be more people buying this guys game, so surely he could then drop his own prices and still be making profit ... or is that just me talking crazy :(