If you want to hear more from the CEO, he's on CNBC's Fast Money tonight. He said that they underestimated the Wii and were working to catch up.
http://www.reuters.com/article/MediaandCommunications07/idUSN2753935820071127
Activision CEO: $199 for consoles critical
NEW YORK (Reuters) - Activision Inc (ATVI.O: Quote, Profile, Research) Chief Executive Bobby Kotick said on Tuesday that prices on Sony Corp's (6758.T: Quote, Profile, Research)(SNE.N: Quote, Profile, Research) PlayStation 3 and Microsoft Corp's (MSFT.O: Quote, Profile, Research) Xbox 360 video game consoles must fall to $199 in the next two years to reach great mass-market appeal.
Kotick said the PlayStation 3, whose lowest-priced model costs $400, was a good product, but that Nintendo Co Ltd's (7974.OS: Quote, Profile, Research) wildly popular Wii was setting the standard for the industry. The Wii now costs $250, while the cheapest Xbox 360 is $280.
"The Wii at its price point is now setting a standard and an expectation, and people say, well, the Wii is less complex technically. I don't think that really matters as much to the consumer," Kotick told the Reuters Media Summit.
The key price point for mass adoption was $199, he added.
"In the next 24 months they all will need to be at that $199 price point, and you can imagine Nintendo will be down to the $129 price point over the next few years," he said.
