Activision to Sony: Cut Prices, Or Else.

Jun 19 2009, 11:10am CDT | by Robert Evans

In the gaming industry, there are some companies you just don't mess with. Activision is one of them. They're the largest independent game developer in the world and they hold the keys to Blizzard, the biggest cash-cow in the industry. Activision has a lot of clout so when they threaten to stop developing for your console, you know you are in some trouble.

Activision's Bobby Kotick, who heads up the gaming giant in Beverly Hills, thinks that Sony's PS3 and PSP are both too expensive. They cost a boatload to develop for (Activision spent 500 million last year in royalties to Sony) and they're too expensive for the average consumer to easily afford.

“They have to cut the price, because if they don't, the attach rates [# of games per consumer] are likely to slow. If we are being realistic, we might have to stop supporting Sony.” said Kotick in an interview with Times Online.

I guarantee you that Sony is looking at Kotick's words as a very real threat. They need Activision's titles if they want to have a hope of staying in line with Nintendo and Microsoft over the coming months. Every huge title that doesn't get released for the PS3 is one less reason to buy it. That's a big issue; Sony needs every last sale they can get.

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Robert Evans
The excitement about new smartphones, tablets and anything mobile drive Robert to unearth the latest rumors and developments in this fast moving space. He adopted 4G as soon as it become available and knows where the mobile market is going.
Robert can be contacted directly at robert@i4u.com.