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It would be a massive blow to Sony if Activision drop support for PS3 and PSP. If they consider development for Playstation platforms too expensive, a few other companies may be tempted to follow suit.

However, that is an unlikely scenario. This is mainly a very public attempt to get Sony to drop the PS3 retail price-and possibly drop the price of development kits.

"It is not a very subtle hint, although Mr Kotick says his company paid $500 million to Sony in royalties and other goods last year, which “probably still worked out at 400 per cent of the profit they made”."

From the original Times article. $500 million in royalties? How much profit does that wipe off Playstation development?