By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Sony Discussion - Activision threatens to "stop supporting" Sony consoles.

Reasonable on 20 June 2009
jcp234 said:
NJ5 said:
@jcp234: Of course a certain number of units has to be sold for profitability. The number is said to be around 1 million for the average PS360 game (which tells us a publisher gets around $20 per shipped copy after eliminating retailer and licensing fees, shipping and manufacturing costs).

Right, I realized I probably did not do a good job of verbalizing what I intended.

The post I responded to communicated something to the fact that if Activision was selling products at a loss for the PS3 platform, that Activision would just sell more products at a loss if the PS3 install base increased (or did I misinterpret that?)

Products are usually priced to cover variable costs...and after a certain number of units sold, fixed costs are eventually covered as well. So it is possible that if Activision did hypothetically take a loss on certain PS3 projects...it could have made a profit if more units were shifted...

I hope that made more sense? If not, I give up...lol

I'm talking about after that point.  If they really aren't making a profit on over 3M units on PS3 of a title then they've got a problem that a PS3 price cut seems unlikely to help - i.e. they should be beyond the fixed development costs, etc. and into cost of the unit, packaging, etc. and royalty payments at that point.  Selling more means more units with the same package costs, royalties, etc.

I'm sure Activision made a loss of a few PS3/360 titles.  It's a pretty accepted scenario that for every megahit you're going to have a few titles that don't even turn a profit.

Again, that's the point.  He's skewing the facts to suit his argument.  Titles that aren't selling well are down to poor reception for the most part, not install base.  Install base does help the megahits but those are sure to be profitable anyway.

I'm not sure I explained myself too well either.  Basically although very successful right now a lot of that is down to a few key titles that are for sure profitable on PS3 and for sure that Activision couldn't afford to lose the PS3 sales on - particularly as the PS3 install base is larger than when CoD4 launched.

Again, it just doesn't make sense the way he's spinning it.

 

 

 

 

 

 



Try to be reasonable... its easier than you think...

Around the Network
jcp234 on 20 June 2009
Reasonable said:
jcp234 said:
NJ5 said:
@jcp234: Of course a certain number of units has to be sold for profitability. The number is said to be around 1 million for the average PS360 game (which tells us a publisher gets around $20 per shipped copy after eliminating retailer and licensing fees, shipping and manufacturing costs).

Right, I realized I probably did not do a good job of verbalizing what I intended.

The post I responded to communicated something to the fact that if Activision was selling products at a loss for the PS3 platform, that Activision would just sell more products at a loss if the PS3 install base increased (or did I misinterpret that?)

Products are usually priced to cover variable costs...and after a certain number of units sold, fixed costs are eventually covered as well. So it is possible that if Activision did hypothetically take a loss on certain PS3 projects...it could have made a profit if more units were shifted...

I hope that made more sense? If not, I give up...lol

I'm talking about after that point.  If they really aren't making a profit on over 3M units on PS3 of a title then they've got a problem that a PS3 price cut seems unlikely to help - i.e. they should be beyond the fixed development costs, etc. and into cost of the unit, packaging, etc. and royalty payments at that point.  Selling more means more units with the same package costs, royalties, etc.

I'm sure Activision made a loss of a few PS3/360 titles.  It's a pretty accepted scenario that for every megahit you're going to have a few titles that don't even turn a profit.

Again, that's the point.  He's skewing the facts to suit his argument.  Titles that aren't selling well are down to poor reception for the most part, not install base.  Install base does help the megahits but those are sure to be profitable anyway.

I'm not sure I explained myself too well either.  Basically although very successful right now a lot of that is down to a few key titles that are for sure profitable on PS3 and for sure that Activision couldn't afford to lose the PS3 sales on - particularly as the PS3 install base is larger than when CoD4 launched.

Again, it just doesn't make sense the way he's spinning it.

 

 

 

 

 

 

That makes a lot of sense. I can agree with that.

I am sure that Activision will not completely abandon Sony platforms, but it's interesting to discuss.



I'm not a fanboy, I just try to tip the balance in favor of logic and common sense.

bardicverse on 20 June 2009

What would be interesting is the "decendant effect", in other words, how the next gen system would be affected. If Activision does drop PS3 support, things are going to be terse between the 2 companies for PS4 development.



_RKO_ on 20 June 2009
bardicverse said:
What would be interesting is the "decendant effect", in other words, how the next gen system would be affected. If Activision does drop PS3 support, things are going to be terse between the 2 companies for PS4 development.

The PS4 is gonna have it rough no matter what.



Zizzla_Rachet on 20 June 2009
JEDE3 said:
Zizzla_Rachet said:
JEDE3 said:
Zizzla_Rachet said:
nojustno said:
Shit just got real! Doesn't matter though they'll cut before 2011 anyway.

Real Talk!

To bads for Teh Cell Fans...Just him saying this was huge..And props to the Damage control Sony People..All of a sudden No one played any Activision games....Well I guess that was Activisions' point


I think you best reread the thread...

After about seven or more post saying "I don't buy activision games"

or "Not going to Miss Activison"....I don't think I need to reread the thread..I read the article on Kotaku this morning...


shows your ignorance

Ignorance about what?

Fanboy Opinion?

Fanboy Logic?



 



Around the Network
Avinash_Tyagi on 21 June 2009
evo03 said:

I can understand that he wants Sony to increase its marketshare so he can sell more titles but Activision shareholders would have his @$$ if he did something this stupid. This isn't like the Gamecube where sales were severely lacking for third parties the PS3 sells games and lots of them and will continue to do so into the future. Dropping support now is leaving lots of money on the table.


Depends, for example if they went exclusive to Wii for a lot of games, they'd probably make more money than they'd lose by dumping Sony

 

Predictions:Sales of Wii Fit will surpass the combined sales of the Grand Theft Auto franchiseLifetime sales of Wii will surpass the combined sales of the entire Playstation family of consoles by 12/31/2015 Wii hardware sales will surpass the total hardware sales of the PS2 by 12/31/2010 Wii will have 50% marketshare or more by the end of 2008 (I was wrong!!  It was a little over 48% only)Wii will surpass 45 Million in lifetime sales by the end of 2008 (I was wrong!!  Nintendo Financials showed it fell slightly short of 45 million shipped by end of 2008)Wii will surpass 80 Million in lifetime sales by the end of 2009 (I was wrong!! Wii didn't even get to 70 Million)

Steroid on 21 June 2009
Avinash_Tyagi said:
evo03 said:

I can understand that he wants Sony to increase its marketshare so he can sell more titles but Activision shareholders would have his @$$ if he did something this stupid. This isn't like the Gamecube where sales were severely lacking for third parties the PS3 sells games and lots of them and will continue to do so into the future. Dropping support now is leaving lots of money on the table.

Depends, for example if they went exclusive to Wii for a lot of games, they'd probably make more money than they'd lose by dumping Sony

Exactly because the Wii version of WaW sold so much more on Wii then it did on PS3! XD



C_Hollomon on 21 June 2009

I never liked Activision. I don't like Guitar Hero and the only COD game I played is COD4. I never was into COD and I'm not getting MF2. The only Activision games I ever owned was COD4 and that Spider Man game from the PS1.

Even if Activision make they games exclusive to the 360 that wouldn't make me want to buy another 360.



Million on 21 June 2009

activision would be doing damage to themselves.




1337 Gamer on 21 June 2009

its a bluff they both need eachother in this economy. At "worst" if u can say that activision stops putting its smaller projects and shovelware on the PS3. But its top tier products cannot afford to not be on SONY platforms



I mostly play RTS and Moba style games now adays as well as ALOT of benchmarking. I do play other games however such as the witcher 3 and Crysis 3, and recently Ashes of the Singularity. I love gaming on the cutting edge and refuse to accept any compromises. Proud member of the Glorious PC Gaming Master Race. Long Live SHIO!!!!