
Sir Howard Stringer also dismisses persistent rumours of a forthcoming PS3 price cut
Sony CEO Sir Howard Stringer has labeled recent threats from Activision Blizzard boss Bobby Kotick as “noise”.
In June, Bobby Kotick claimed that Activision Blizzard may cease supporting Sony’s PS3 platform unless the system is given a price drop.
Yet on Tuesday, when attending the Allen & Co conference in the US state of Idaho, Stringer gave no impression that Sony had taken the warning seriously.
“[Kotick] likes to make a lot of noise,” said Stringer according to a Reuters report. ”He’s putting pressure on me and I’m putting pressure on him. That’s the nature of business.”
In regards to the persistent requests from businesses and consumers that Sony cut the PS3’s retail price, Stringer again denied the notion that the high-end system would be selling cheaper any time soon.
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When asked about the logic of a price cut, he replied “I [would] lose money on every PlayStation I make – how’s that for logic.”
Comments
Sony VS Activision
Has anyone thought about the leverage sony may have against activision, after all i wonder when it runs out and what terms that Activision have the bond licenses and spiderman, which are both owned by Sony Pictures. And then theres the consideration activisons deals with Marvel and Lucasarts, who may not wish to see there potential userbase for sales cut by loss of the PS3/PSP/PS2 market, and then theres the money activsion make of PSN for Guitar Hero and COD Map packs, sony could reject any or all of Actis past PSN releases if they dropped PS3. This is just kotick trying to cut royalites, and make a faster buck of sony, just like his increased RRP for Modern Warfare 2, and the cost of Guitar Heros, and the saturation the market has on those, he could also be angry he let Ghostbusters go, but i havent seen how well its done figures wise. And I bet EA would love Rock Band to have zero competition on the Sony family of consoles. Still as stringer says, this is business, and the games industry is very cuthroat at the mo. Also activisons lost ID software after Wolfenstein, thats made them some money over the years, so maybe hes trying to squeese sony as his publishing house is now based on just a few franchises, merger with Blizzard aside, and didnt Activsion end up merging with a company that once made shareware games until the success of Diablo, Starcraft and then World of Warcraft, Blizzard a much younger company has alot of clout there if im right on it and it was a merger not a hostile takeover.
Sony licences safe
Sony is a massive company and all of the departments are run independenly. I think licences like Spiderman, Bond, music, etc should be safe because they are different departments entirely looking out for themselves.
I know this sounds nuts, but that's how big corporate business works. I wouldn't be surprised that the people running the departments would quite happily see SCE trip up so they'll be able to advance up the company quicker themselves.
Activision are also stepping away from licences, so far just keeping the ones they think they can churn out year after year, but if they lost them then they'd just put their backing behind something else and not worry about it too much.
RE: Sony Vs Activision
Stringers argument is that the cost of production for making PS3 games isn't a good ROI in relation to the installed base. Not sure if making games for the PS2 and PSP would make them that much money anyway. I would say at the moment they probably don't even break even on some games they release on the PS3 which must be a concern. Writing was on the wall when they started giving Xbox360 exclusive releases on some of there forthcoming titles. It would be a good investment putting Modern Warfare 2 on the PS3 though, so that there would be like scoring an own goal.
licenses
Good point, sony has always run its companies as seperate entities, which is why the movie licenses have never only been dished out to to there games divsion, yes big business runs like this, I was merely reflecting the leverage that sony could use if it came down to it. I think Kottick is still merely posturing and kicking steam to try and get sony to change policy, some of which may need changing, Indeed i wasnt aware Acti was moving away from licenses, are not the Guitar Hero branded ones licenses, and do you see my point around leaving EA open field for Rock Band, which could effect other Record Companies, wondering which game to sign there band two the one with only one online store, or the one on 2, maybe Kottick hates the PSN business model where he pays for the bandwidht on PSN and loves it been transferred to the end user through XBL. Sony is intregrating its divisons more hence the XMB used by the Consumer electronics division, and soon the PSN usage elsewhere. Long term i think Acti has more to loose if it dropped PS3 now, its XB360 business is healthy though its an interesting topic, some of my work colleagues and friends mis read the article and are convinced activision is dropping PS3, and the PS3 is doomed, so im following this. Interseting point on those in other depts wanting SCE to trip up, but Sony under stringer seems to be a ship moving towards a better direction SCE and Sony pictures are divisions where convergence would be wise. Im not sure stringer wants the divisions wishing others to fail, In fact the Blu Ray and movie division is tied heavily into the PS3s business model. And bluray isnt just Sonys baby, Disney and many other companies, companies that may have some ties to activision via shares etc, and investments, may have ties to Sony, well never know all the backroom business, and i think deservered or undeserved sony gets too much negative press, from too many people who seem to wish to see them fail. Thank you for an informed interesting reply.
£££s
Wasn't Kotick's point that the time and money invested in making PS3 games isn't making the returns worthwhile?
Also, what's this? “I [would] lose money on every PlayStation I make – how’s that for logic.”
Sony lose money on every PS3 they sell anyway, as did MS with the Xbox not so long ago. It's called a loss leader and is widely known to be common business practice. Does he think we're idiots?
PS3 to drop in price this November is my prediction. As others have said, the only reason they're not telling us yet is because nobody would buy a PS3 between now and November.
interesting
yeah i tend to agree with the last statement, with so many leaks from sony at the moment, they dont want to confirm a price drop no one would buy any product if they knew a price drop was on the horizon,
i would think a price drop before xmas to boost sales as sony has alot of 1st party games out in this period and it would help to increase install base and software sales, psn users potential sales on psn etc etc
No compelling reason to buy a PS3
At $399 the PS3 is not a good deal at all. There is currently not one single game that is worth buying a PS3 for. Sure it has a built-in Blu Ray player but you can get one of those for $250 now. Also the lack of PS2 support is appalling. At least Microsoft makes an effort to make some XBox games compatible with the 360! Unless the PS3 makes at least a $100 price drop I do not see any significant future for the platform.
Facepunch
They both have that face you just want to punch...
Yes very punchable people them 2 are
David=Moron
David wrote: "There is currently not one single game that is worth buying a PS3 for"
I can't actual believe that some people still try to make this claim stick. Did LBP, Killzone 2, Uncharted, MGS 4 and many more just slip you by? What a total dickhead.
Bobby, shut up
ActiBlizz is riding on absurdly high margins for WoW. And Kotick has the nerve to demand margin concessions from a hardware maker, so he can make yet more money? Somewhere between ballsy and just dumb. Bobby..... shut up.
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