Activision CEO "Likes to Make Noise" About PS3 Price Cuts

Sony CEO dismisses Activision CEO's threat to stop supporting PS3

Sony is taking a hard hit in the current poor economy. The firm announced a massive loss last quarter and sales for many of its divisions are at historic lows. Sony is also under lots of pressure for it gaming division to perform.

In June, Activision CEO Robert Kotick put pressure on Sony CEO Howard Stringer to cut the price of the PS3 console. Kotick said at the time that Activision might have to reconsider developing games for the PS3 is price cuts weren't made. Sony issued a retaliatory press statement reading, "We enjoy healthy business relationships with and greatly value our publishing partners and are working closely with them to deliver the best entertainment experience."

Both Stringer and Kotick are at the Allen & Co conference in Idaho this week. Reuters reports that when Stringer was asked directly about Kotick's statements Stringer said, "He [Kotick] likes to make a lot of noise. He's putting pressure on me and I'm putting pressure on him. That's the nature of business."

Stinger was also asked about the logic of not cutting prices on the PS3 console. Stringer replied, "I [would] lose money on every PlayStation I make [if prices were cut made] -- how's that for logic."

[via Daily Tech]

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Activision CEO Calls for PS3 Price Cuts

Activision CEO says support for PS3 may stop is price cuts aren't made

The video game industry is feeling the burn of the poor economy as game sales and console sales are slowing for some companies. A few smaller game developers have been forced out of business altogether and many in the game industry are calling on Sony to cut the price of its PS3 console.

Sony maintains that there is no price cut coming for the PS3 console. Sony says it can't cut the price of a console that is a money loser already when it posted a massive $1 billion loss in its last quarterly earnings report. The fact that Sony is on shaky ground financially has not stopped Activision CEO Bobby Kotick from calling on Sony for PS3 price cuts and even saying that his company's support the console may stop if price cuts aren’t made.

Kotick said in an interview, "It's expensive to develop for the console, and the [Nintendo] Wii and the Xbox are just selling better. Games generate a better return on invested capital on the Xbox than on the PlayStation."

[via Daily Tech]

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