Activision threatens to "stop supporting" Sony consoles.

[Aiemond]

Akvod said:

TheThunder said:

Aiemond said:

TheThunder said:

Aiemond said:

TheThunder said:

if I were Sony I would call him on his bluff. He would be fired the next day if he did it. Seriously think about it.

Unless they think the money going to ps3 projects can make more profit if they are put on other ones, or they think they can get a deal to decrease the license fee they pay to Sony or if they think they can pressure a faster price cut. It could be all three as well. I don't know if they can make more money if they stopped ps3 support, but if their financials and models point to it being the case there is no reason for them to continue the support. Lastly, did you see CEOs being fired when they stopped GC support? If not why is this any different?

it simple really if you are going to drop a source of a profit (yes their games on PS3 bring profit big time) then you should find another source that replaces that gap you made or else shareholders are going to pissed. PS3 games may sell less than 360 but they still bring them great revenue and profit each year and they can't just say no to that it just won't happen. PSP on the other brings only like 1% of their revenue according to their financial report back in 2008

That's what I am saying. That they are going to replace the ps3 projects with ones that have better returns. They explain this to shareholders by using their models, graphs, figures etc that they used to come to this conclusion and then talk about how much more they will make with these investments. Also, coupled with the comments he makes, it seems they make less profit off a ps3 project than they would a similar 360 profit cause costs are higher.

From the times article: http://business.timesonline.co.uk/tol/business/industry_sectors/media/article6531367.ece?print=yes&randnum=1245400825888

The target is Sony, the once-dominant hardware maker. “I'm getting concerned about Sony; the PlayStation 3 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,” he says

So, they say no to PS3 if they think they can take the money they are spending on it and put it to a more porfitable project.

 

This is prolly what happened to MW2 wii imo, even though it makes me sad to admit it.

you have a point but let's look at this from a smart business stand point. Now the PS3 brings less profit than the 360 sure but it is still PROFIT that's one. Second, what would you do keep pumping highly recognized titles that will sell and sell or element 22 million potential shoppers to focus on bringing less recognized titles to an even smaller base than you had before ?? I think you see where am I going with this.

they really would not cut the PS3 from the COD and GH it just won't happen. Less profit than another platform yes but it's still some biiiiiig chunk of profit and those new projects you have have got to sell almost as good as you current Big blockbusters just to return the profits you lost potentially on the platform you cut earlier

Bottom line a big FAT empty threat that's all.

To add on, the reason someone threatens is to get something out of the other person. Lets say Activision follows through. They lose profit, and while Sony will have a huge blow on them, they're not going to commit suicide by cutting the price, and so Activision will be losing profit for nothing.

Its not empty. I don't know what will replace it. Maybe some of it will go to more map packs, which have a good roi and sell well. Maybe they have a new franchise they think they can make big and then can milk for the long run. More dlc for other activision games, etc. There are alot of things they could do. Now, I am not saying that CoD and GH will go but prolly smaller projects. And if they did get rid of ps3 CoD, they would have an idea that they are very sure would make more profit than ps3 CoD (remember they make less profit on PS3 map packs due to Sony charging alot for DLs).

 

Threats are to get something, activision wants price cuts and royalty cuts. But its not empty. If they don't get them they will do what makes them the most money and dropping ps3 as a platform may well do this with all the evidence that has been lined out.

 

Akvod, did you read all the quoted material? It will not be for nothing, they would put the money other places to make that profit (and make more perhaps). PS3 costs more to dev for, ps3 has smaller userbase, thus profit margins on ps3 titles are smaller than other consoles. And since with small margins you need volume, this worked in the ps2 days. But small volume + small margin = No thx.