Jump to content

Activison threatens to drop PS3 :O


Recommended Posts

"The boss of the world's biggest games publisher has issued a remarkable warning to Sony - cut the price of PS3 or Activision will could the plug on its PlayStation development.

 

Speaking in an interview with The Times, Bobby Kotick stated: "I'm getting concerned about Sony - the PS3 is losing a bit of momentum and they don't make it easy for me to support the platform.

 

"It's expensive to develop for the console, and the Wii and the Xbox are just selling better. Games generate a better return on invested capital on the Xbox than on the PlayStation."

 

The solution, Kotick believes, is to cut the price of the console in an effort to boost sales of the format.

 

"They have to cut the price, because if they don't, the attach rates are likely to slow," he continued. "If we are being realistic, we might have to stop supporting Sony. When we look at 2010 and 2011, we might want to consider if we support the console - and the PSP too.""

 

Hmm, interesting. Hopefully we'll get a price cut for the PS3 now. Sony cannot afford to have Activision not producing titles for their console, that would equal the end of the PS3.

 

Source

 

well lol. what a bunch of lamers.. as saha says god save the queen.

 

They have been on a roll recently, sueing the creators of Brutal Legend, Increasing the price of TH:Ride and Guitar and DJ Hero and now this.

It's that time of the month for them.

Link to comment
Share on other sites

i don't think it will happen apart from cod games, they havent done much quality games. f**k activision.

 

also they are planning to start subscription system for cod online :D

Link to comment
Share on other sites

i don't think it will happen apart from cod games, they havent done much quality games. f**k activision.

 

also they are planning to start subscription system for cod online :D

for the latter part it has been cleared they are not introducing it.........

Link to comment
Share on other sites

Sony Europe has since commented: “We respect our third-parties’ opinions and their right to express those opinions but we will not be commenting on this story."

 

Meanwhile, Wedbush Morgan analyst Michael Pachter also chipped in, accusing Kotick of 'bluffing.' “Of course Bobby’s bluffing, and good for him,” he said in a phone interview.

 

“I think Bobby’s obviously interested in Sony selling as many PS3s as they possibly can, and he’s not happy with their penetration so far. I think he favours a price cut, and would rather see one sooner than later.”

 

Source

Link to comment
Share on other sites

also they are planning to start subscription system for cod online :D

Activision has confirmed that MW2 will be same as earlier and online will be Free.

 

Also this i think is a publicity stunt. Why are talking on the World Wide Web like this whereas they could have picked up the phone and had spoken to sony about the matter.

Link to comment
Share on other sites

Kotick went on to say that his company forked out $500 million to Sony in royalties and other goods back in 2008, which he said “probably still worked out at 400 percent of the profit they made”.

 

if this is the case then i have to admit Sony is wrong too. Also what kotick is saying is pure blackmail.

Link to comment
Share on other sites

Activision has confirmed that MW2 will be same as earlier and online will be Free.

 

Also this i think is a publicity stunt. Why are talking on the World Wide Web like this whereas they could have picked up the phone and had spoken to sony about the matter.

 

Yeah, thats what I thought.

Link to comment
Share on other sites

I doubt they would actually go as far as dropping the PS3 since that would mean losing a huge share of the market. It seems the console wars are beginning to hot up again :D

 

Bobby Kotick says development costs are too high and returns too low.
Link to comment
Share on other sites

Also this i think is a publicity stunt. Why are talking on the World Wide Web like this whereas they could have picked up the phone and had spoken to sony about the matter.

It definitely is for publicity, but I wouldn't go so far as to call it a stunt. It would be very strange for a company like Activision to voice such a strong opinion publicly without fist having spoken with Sony on more than one occasion. There are too many legal ramifications to such a statement, especially considering a lot of internal deals that keep bing struck between console owners and software publishers.

 

Activision are obviously frustrated and not wrongfully so. Sony must have made a bucketload of promises to them and by the look of things, they are not delivering. The high cost of development on the PS3 is no secret and in these times of economic scarcity, Activision's financial controllers must be questioning the rationale of pursuing a capital investment that drags the overall project IRRs down. Dont get me wrong, Activision might still be making a profit on PS3 games, but it looks like its a much, much lower margin.

 

Low margin profitability is a risk, because it doesn't allow publishers to take risks on that platform. They will simply stick to releasing high profile titles with guaranteed sales numbers. Dont forget, Activision invested a lot of money in Infinity Ward to undertake simultaneous development of CoD4 on all three platforms. That cost of development is usually amortized over a set number of units sold, usually the first 2 - 4 batches of production. Game sales over and above this, is usually pure profit (less sales and distribution expenses). This could be a reason why Activision is hopping mad about the poor PS3 software attach rates. It just drags their percentage returns downwards.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...