Activision calls for console price cuts
As Morhaime eyes market opportunities from motion control innovations
Activision-Blizzard insists that the game industry can still grow despite the global economic gloom – just as long as the market sees more hardware price cuts.
Speaking at Activision-Blizzard’s earnings call, Blizzard president Michael Morhaime said that the more affordable consoles were key to improving the industry’s health.
“If you look at consoles, I think you are going to need to see hardware price declines given the economic uncertainties that we have,” he said.
Morhaime added that game studios need to take advantage of the potential presented in both Sony and Microsoft’s motion controllers.
“You are going to need to see product innovations,” he said. “And as you look at some of the new user interfaces that are coming out, I think those are certainly going to deliver some interesting product innovation.”
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The Blizzard president went on to talk up digital product, saying it offers higher margin opportunities, adding that natural growth will occur naturally from expanding demographics.
Activision-Blizzard beat city expectations last night, reporting $4.28 billion GAAP net revenues for the 2009 calendar.
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