Sir Howard Stringer, Sony's CEO, is an actual knight, and he ended his jousting tournament early recently to talk to Reuters about Activision head (and commoner) Bobby Kotick's call for a price cut for the PlayStation 3.
As you may know, Kotick has lately become very serious about Sony cutting the price of the PlayStation 3, going as far as saying Activision might drop the console altogether if the price isn't cut. "If we are being realistic, we might have to stop supporting Sony," Kotick said. "When we look at 2010 and 2011, we might want to consider if we support the console — and the PSP too.”
Stringer responded by basically calling Kotick a loudmouth: "He likes to make a lot of noise... He's putting pressure on me and I'm putting pressure on him. That's the nature of business." Oh, snap!
Stringer went on to explain that his company is not going to cut the price of the console because it would lose money on each unit sold if it did.
Reuters went on to inquire about rumors that Sony was thinking of selling off some assets. That, too, is not true, according to Stringer. "We're learning to fuse content and hardware. This wouldn't be a time to get rid of either," he said.
This back-and-forth between Kotick and Stringer is unlikely to end in an exciting duel to the death, but it does raise some interesting questions, which I will answer for you because I am a great genius.
- Is Kotick going to make good on his company's threat to not develop games for the PlayStation 3? I seriously doubt it, but if it did, the fallout would be enormous and might add up to a death knell for Sony's gaming machines.
- Is Sony going to eventually cave on ceaseless demands to lower the price of its flagship game system? Sure doesn't look like it in the near term, but in the long-term, of course.
- Is Sony going to succeed in fusing content and hardware? Partially, but they'll really need to overhaul the PlayStation Network and the PS3's firmware to accomplish this.
- How funny is all this back and forth to Nintendo, who have discovered the age-old secret to earning endless amounts of money? Very, very funny.