Activision demands immediate PS3 price cut

Posted by Aharon Etengoff

San Francisco (CA) - Activision CEO Bobby Kotick has demanded that Sony implement an immediate Playstation 3 price cut. Kotick explained that the the PS3 has lost "momentum," while the Wii and Xbox "are just selling better." Kotick also noted that Xbox games generated a higher ROI (return on investment) in comparison with PS3 titles.

"They have to cut the price, because if they don't, the attach rates [the number of games each console owner buys] are likely to slow," Kotick told the Times Online. "If we are being realistic, we might have to stop supporting Sony."

However, Sony has continued to insist that it will not be pressured into lowering PS3 prices before the 2009 holiday season.  

"I think everybody but us would love to see it given away for free," Jack Tretton, president and CEO of Sony Computer Entertainment of America told CNBC. He added that cheapest wasn't always the most successful, but rather, "what you get for your dollar."

It should be noted that Nintendo has issued similar denials regarding a lowered Wii price tag, despite confirmation of a (May)  57 percent year-on-year drop in sales.  

A significant PS3 price cut could pose a serious threat to sales of Microsoft's Xbox 360 and Nintendo's Wii. An 80 GB PS3 currently retails for approximately $400, while an Xbox 360 with a 60GB HD is available for $300. Nintendo's Wii console is considered the most affordable option at $250, although an Xbox Arcade - with a memory card instead of a HD - can be purchased for $200.