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Forums - Sales Discussion - Activision calls for console price cuts

finalrpgfantasy on 13 February 2010

what activision want? bankrupt the companies so they make they own consoles.



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heruamon on 13 February 2010
Reasonable said:
heruamon said:
Errrr....EA's boss said something similiar about a week ago...Price cuts for consoles were too little too late...

Of course they did.  It's like those who sell cars to make money and those who sell petrol.  If I sell petrol so far as I'm concerned (in purest terms) the cheaper cars are the better - and the unrealizable ideal would be if they were free.  That way I get to sell more petrol and make more money.

If I'm EA or Activision or any publisher the cheaper the consoles are the better from my point of view.  It's not my problem MS and Sony, for example, put in expensive tech or have to sell at a loss - I sell games and the more consoles sold the better.  Simple price elasticity indicates the cheaper something is the more it will sell (ignorning other complications and underlying demand  and market size of course) and therefore the cheaper the better for the HW to produce a bigger market for the games.

The caveat for the console makers (and the complication) is they get a cut on the games, too (so far as I'm aware).  Otherwise the situation would reverse nicely and they'd want games to be free to encourage the most people to buy the console to get at them.  I imagine that is the nub of the situation which makes EA, etc. feel they have a fair claim on the HW side as they only make money on the games while in theory the console makers can make money on the HW and the consoles.  Of course, the fact the console might be sold at a loss is the other complication as the console makers then need to balance the money from more games vs the loss from more consoles to try and pick the sweet spot.

 

To me...they should be taking a longer term view, and encourage the console makers to more improvements to software, and to keep the generations longer..that way, developmental cost are lower for software, and install base is higher.  We really should see new consoles for another 3 years a minimum....



"...You can't kill ideas with a sword, and you can't sink belief structures with a broadside. You defeat them by making them change..."

- From By Schism Rent Asunder

Naum on 13 February 2010

So Nintendo, Sony, Microsoft should take the financial downfall beacuse Activision can't make good enough games??



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Cheebee on 13 February 2010

Lol. Activision had better busy themselves making some good games.



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hsrob on 13 February 2010

Australia:

DJ Hero Renegade Edition (a game) = $300

XBox360 Arcade Edition (a whole damn console) = $300

Activision suggesting there needs to be console price cuts...............get fk'd!



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Squilliam on 13 February 2010
RolStoppable said:
What the industry needs to improve its health are better games. Software sells hardware.

What Australia needs are better Australians!



Tease.

Gearbox on 13 February 2010
yanamaster said:
Pretty damn arrogant, aren't they? They were lucky to get a break with modern warfare and now they act like they're running the show?

ahaha.. ah... there company has been growing in size year over year since they started. lucky?

 

they are owned by vivendi - which has an operating income of over 5 billion euros.

they own starcraft and warcraft.. meaning they own World of Warcraft.

they have the best selling rts - starcraft

they have the best selling mmo - WoW

they have the best selling fps - call of duty

they have the best selling music game - guitar hero

 

 

who else comes close?

 



hsrob on 13 February 2010
Squilliam said:
RolStoppable said:
What the industry needs to improve its health are better games. Software sells hardware.

What Australia needs are better Australians!

Perhaps, but the deluge of Kiwis sure as hell isn't helping :P



coolguy on 13 February 2010

sony should drop the 120 gig to 199 and the 250 gig to 299.
this will push consoles for sure



VITA 32 GIG CARD.250 GIG SLIM & 160 GIG PHAT PS3

Snake612 on 13 February 2010

I could understand their reason to want price cuts the 1st time but now this is ridculous. The sales of the 3 consoles are pretty good at this point. There will not be any price cuts until late 2010 or maybe early next year.



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