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Let's take the context of a "What if?" scenario.  What if they did pull support?  What do you think would be the short, medium, and long term effects?  I'll give it my best shot, but you seem to be in a better position to understand the ramifications of such a thing. (this is probably a near worst case scenario for Sony so don't take it to heart)

Short term effects: Loss of profit, Loss of Revenue, layoffs and restructuring the best off the PS3 teams over to PC and 360 dev teams, Some fan backlash and a hit to their reputation.  Deals with Microsoft to co-support their advertising and keep their games near the front of the system's UI.

Medium term effects: With the loss of Activision(two of their to 5 games) Sony sees an earlier plateau of sales then they otherwise would have,  Fans of the Call of Duty/MW series move over to the Xbox 360.  With a more focused development structure they are able to put out higher quality Wii titles(hey we can hope).  Possible Call of Duty:6 use of Natal as a Head Tracker?  Sales possibly reaching or surpassing Halo 3 levels(also a Wii version that kicks ass).  Possible domino effect taking place with smaller developers depending on Activisions moves (Starcraft 2 on 360 or WoW 2 on 360) and moving on to larger developers/publishers.

Long Term effects: Depending on how much or how far the domino effect has gone PS3 sales could be 1-10 million units less than what it should be.  Activision touts their success at using a more focus development style to do more with less people.  They get their point across to Sony and Sony's next console is build with developer needs in mind(hey Krazy Ken isn't in charge anymore).

That's a bad scenario... I could easily see it going the other way though, but it's hard to keep them down considering their big earner is WoW and that wont be effected by this decision at all.