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Robert Kotick, chief executive officer of Activision, said in an interview that the world’s largest game publisher might want to cease developing games for Sony PlayStation 3 and Sony PlayStation Portable since such titles do not generate desired return on investment. As a solution, Mr. Kotick demands Sony to cut pricing of the PS3 and PSP to sell more units, which will automatically make the platforms more appealing to game developers.

“I am getting concerned about Sony; the PlayStation 3 is losing a bit of momentum and they do not make it easy for me to support the platform. It is expensive to develop for the console, and the Wii and the Xbox are just selling better. Games generate a better return on invested capital on the Xbox than on the PlayStation,” said Bobby Kotick in an interview with Times Online.

The claim of Mr. Kotick seems to be reasonable: the PlayStation 3 is the worst selling game console of this generation, it is behind Microsoft Xbox 360 and considerably behind Nintendo Wii. Moreover, the PS3 is powered by Cell processor, which makes the platform rather uneasy to develop for, according to many developers. As a result, video game designers have to spend more on development for the PlayStation 3 (compared to Xbox 360 or Wii) and address smaller market compared to other two consoles.

“They have to cut the price, because if they do not, the attach rates [the number of games each console owner buys] are likely to slow. If we are being realistic, we might have to stop supporting Sony. When we look at 2010 and 2011, we might want to consider if we support the [PS3] console and the PSP [portable] too,” added Mr. Kotick.

Lowering the pricing on PlayStation 3 and PlayStation Portable would catalyze more people to acquire the systems and buy more games, which would push earnings of both Activision as well as Sony Computer Entertainment, which receives royalties for every game that Activision and others sell. Another way to “please” game developers would be cutting royalty payments on titles.

It is by far not the first time when Robert Kotick publicly demands Sony to lower the price of the PlayStation 3. However, this is the first time when the chief executive of the world’s top game publisher threats SCEI to stop developing games for the latest platforms.

Tags: Sony, Playstation, Activision

Discussion

Comments currently: 3
Discussion started: 06/19/09 02:37:42 PM
Latest comment: 06/22/09 03:25:53 AM

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1. 
Lol..good stuff Activision.
0 0 [Posted by: Lumpy  | Date: 06/19/09 02:37:42 PM]
Reply

2. 
Of course, the one and only reason why Sony is the 3rd is because of Blu-ray drive. But no, it was not the cost, it because the fact that "No One can pirate Blu-ray Disc!".

You must accept that it is very easy to install hacked firmware in Wii and made the machine fly with pirate software. Currently, you even no need to burn a disc at all, just put pirate software ISO file in Flash Drive or USB Harddisk and then you Wii can run pirate software like a bird.

XBOX and XBOX360 is also, but harder, becuse of you need to install a MODCHIP.

Because of so many people virtually have no cost on software on these machine (Wii and XBOX) so it wasn't surprise that why 2 of them lead over PS3.

If you don't believe me, just search in Pirate Bay, you will easily find ISO for XBOX and Wii, but you will never find PS3 version.

I think most of software publisher love PS3 in this respect. Why Activision not?, because Activision's killer software is already immune from being pirated (at least mostly) because you need to purchase their hardware+software bundle to play the game! You can't play Guitar Hero without guitar controller, right? Its true that you need to purchase only 1 guitar then able to play later version. But they will keep making their guitar have new feature and let the bundle price so cheap until you decide to purchase their new bundle version (of cause, its mean you not pirate their software).

Since Activision selling hardware controller not software, it will cost them in certain amount (setup cost) to make hardware for each system available (For example: $1,500,000 for 50,000 initial unit,$15 each after that). And larger installation base (more console sold) mean more chance they able to sell their hardware and mean more profit for them (bigger hardware made, cheaper cost they are).

No other publisher upset on smaller PS3 base becuase they are selling software, not hardware. Being pirate free, is every publisher dream.

Sorry that my post is long and hard to read (since English is not my native language)


0 0 [Posted by: UncleSnake  | Date: 06/21/09 07:37:17 PM]
Reply

3. 
If the pirate argument was true then why do sales figures show a lot more Wii and xbox games are being sold?

It's just simple math - if the costs to develop the game are greater then you get from selling it then don't do it. For the PS3 with it's:
a) smaller install base - especially if you discount all those PS3's being used mostly as blue ray players, and those households that own both a PS3 and a 360 (hence don't need the PS3 version as they can get the 360 one instead).
b) hard to programme for hardware (even Sony say that).

The math just doesn't add up.
0 0 [Posted by: Dribble  | Date: 06/22/09 03:25:53 AM]
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