Kotick: All consoles must hit $199 in two years

Activision CEO Bobby Kotick has forecast that both Sony and Microsoft will “need” to drop the price of their next gen consoles to $199 (£100) in the next two years to reach mass market consumers.

He added that he believes the Wii, which currently sells for $250 (£125), would drop down to as low as $129 (£65) in that time.

Kotick told Reuters:

"The Wii at its price point is now setting a standard and an expectation, and people say, well, the Wii is less complex technically. I don't think that really matters as much to the consumer

"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."