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Activision CEO Wants Console Price Cuts

bleahy
32 Comments

Posted March 10, 2009 - By bleahy

All things considered, Activision Blizzard is doing relatively well during the economic downturn. Much of that is because of the Blizzard part of the company, which rakes in money from World of WarCraft, but Activision proper has done a good job too. How could Activision and the rest of the industry make even more money right now? According to CEO Bobby Kotick: console price drops:

"The price on platforms today has still not gotten down to mass-market price points and I think when you're in the economic circumstances that the world has found itself in, there really is a difference between a $199 game system and a $299 game system."

I see your point, Bobby. On the other hand, here's my take on the issue: How about you drop the price of games? I already own the consoles I'm going to own and I'm not going to be picking up any new ones right now. What I will buy are games, but right now, $60 is looking a bit pricey. How about $50... or $40? I mean, if a console dropping by $50 isn't even enough to buy most new games.

I know, I know. Suggesting that you drop the price of your product is pretty crazy. It's obviously the console makers that should lose money on the sales of its hardware so you can push more software. You know, the stuff that's profitable for your company.

Kotick also feels that Activision Blizzard can approach the Wii in a different way:

"In the past we approached the Wii as an extension of what we were doing on PlayStation and the Xbox and I think we can do a better job of creating original content for the Wii, and I think you'll see more of that this year."

Bring on the Call of Duty mini-game collections! On a serious note, it's good that they will start to make "original content" for the Wii and not just watered-down ports with tacked on motion controls. But I'm not optimistic about what "original" means in this case. Hopefully, it's more MadWorld than Carnival Games.

Activision, which has $3 million sitting around, is doing fine when compared to the rest of the industry. Apparently, doing fine isn't doing fine enough for Kotick. Now who's got $60? I've got to purchase Guitar Hero: Greatest Hits.

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Tags: Videogames
Activision CEO Wants Console Price Cuts
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