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Forums - Sales - Activision CEO: $199 for consoles critical

FishyJoe on 27 November 2007

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.



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ProfDallas on 27 November 2007

$199 huh? mabey that price point of Hd-dud players will save HD-DVD.



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Chadius on 27 November 2007

They're a bit slow with this, but yes. The barrier of entry for game consoles is $200. Heck, Microsoft admitted it over a year ago when the Wii's pricing was finally announced.



There is no such thing as a console war. This is the first step to game design.

GhaudePhaede010 on 27 November 2007

Nintendo might not ever move from 250 unless absolutely necessary. They have been very stubborn with the DS as of recently and I must admit, with all the money they are making, I could hardly fault them.

Even if XBOX 360 gets their first, Wii will already have all the popularity.



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shams on 27 November 2007

HD-DVD?? huh?

Well, the PS3 is halfway there. It could get down to $299 by next Xmas - I think that is Sony's aim anyway. Probably 2 (maybe 3) years before it reaches $199 though.

The Wii is basically there anyway - its just "bundled" with a $50 game (that most people are happy to buy).



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fabledgamer on 27 November 2007

i dont see the ps3 dropping its price to $200 next year. At most i can see the 40 gig in around $300 price range ( that is if its still around.) I can see the cheapest 360 dropping to around $250 like the wii. If that happens then i bet the wii will drop to $200, unless they still sell like they do now.