Activision: software sales comparison PS3 - 360 - PS2 re: sony platforms !!

[noslodecoy]

While, as everyone knows, this is saber-rattling and so on and so forth BUT....

If you want to compare game revenue on the console's, which is what he is most interested in, you can't just look at sales.

Keep in mind the following:

"It's expensive to develop for the console"

"Games generate a better return on invested capital on the Xbox than on the PlayStation."

...his company paid $500 million to Sony in royalties and other goods last year...

"the attach rates are likely to slow"

And remember, this is a guy who wants every dollar he spends to return as much as possible. Hell the man has infamous statements attributed to him about exploiting brands.

The fact of the matter is this: the guy doesn't want $1 -> $2, he wants $1 -> $3. If it's possible for him to turn $1 -> $3 on the 360, then why waste resources turning $1 into $2. Why not divert all his resources to the 360. Those resources can either a) produce more titles which turn $1-> $3 or b) produce titles faster which $1 -> $3.

I know a lot of people are saying he profits from the PS3, but let's put it this way; Say you mow lawns. You've been cutting lawns in your neighborhood for a few years now. They pay you well, about $20.00 per yard. However, you started mowing lawns in a new neighborhood which pays you $25.00 per yard. Now you could a) continue mowing those lawns in your neighborhood even though you do not make as much, b) ask your clients in your neighborhood to pay you more, or c) invest all your time mowing lawns in the new neighborhood for $25.

Most people would choose B and then move on to C...

that's what Activision is doing.

Activision doesn't want to keep paying Sony more per game in royalties than it does for the 360 and on top of that for a console that doesn't even sell as many games. They will continue to do so, don't get me wrong, but I'm sorry Bobby will keep running his mouth until Sony lowers those royalties they've been charging.

Remember:
...his company paid $500 million to Sony in royalties and other goods last year...
and
"Games generate a better return on invested capital on the Xbox than on the PlayStation."