Activision threatens to drop PS3, PSP

By Mark Walton, GameSpot UKPosted Jun 19, 2009 8:41 am PT

CEO Robert Kotick tells The Times that Sony doesn't "make it easy for me to support the platform," calls for PS3 price cut.

Despite a growing user base for the PlayStation 3 and PSP, Sony recently reported a total net loss of $1.03 billion , its first since 1995. The news came on top of previously announced job cuts and vast restructuring, while its flagship console, the PS3, continues to lag significantly behind both the Xbox 360 and the Wii in worldwide unit sales.

Kotick would like the PS3 to be cheaper.

Now it looks like things might be taking an even greater turn for the worse for Sony. Speaking to The Times of London, Activision Blizzard CEO Robert Kotick threatened to pull support for both the PS3 and the PSP as early as 2010, saying that the return on creating games for the platforms isn't as good as on competing systems.

"I'm getting concerned about Sony; the PlayStation 3 is losing a bit of momentum and they don't make it easy for me to support the platform," he said. "It's 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."

"They have to cut the price, because if they don't, the attach rates are likely to slow," he continued. "If we are being realistic, we might have to stop supporting Sony." When asked about a time frame he said, "When we look at 2010 and 2011, we might want to consider if we support the console--and the PSP."

Kotick's recent statements aren't the first time he's called for a price cut to the current generation of consoles. In November 2007, he told a Reuters Media Summit that all three consoles need to be priced under $200 by 2009 if they want to continue pursuing mass-market adoption.

Activision Blizzard is weathering the current global economic crisis with aplomb, having reported a $189 million profit on revenues of $981 million during its January-March quarter. The publisher's rhythm franchise Guitar Hero also continues to perform, with Kotick describing the series "as big as Titanic with better margins." The franchise is soon to be bolstered by the upcoming release of turntable-equipped rhythm game DJ Hero, which is due to be released on the Xbox 360, PS3, PlayStation 2, and Wii later this year.

[UPDATE] Sony didn't stray from the company line in issuing a response to Kotick's statements. "PlayStation has tremendous momentum coming out of E3, and we are seeing positive growth with more than 350 titles slated to hit across all our platforms, including many anticipated games from our publishing partners," the publisher said in a statement. "We enjoy healthy business relationships with and greatly value our publishing partners and are working closely with them to deliver the best entertainment experience."

3890 Comments

  • TevoxZi

    Posted Sep 5, 2009 8:38 am PT

    @spartacus125

    I believe this is bogus, besides a pricecut is coming on PS3 which was the "request" in this article.

    @flyingdutchdog
    Why's that? Oh well.

  • spartacus125

    Posted Sep 4, 2009 9:27 pm PT

    really bad news for me. i just got a ps3 for my 15th birthday and i was expecting to buy the rest of the cod games for the ps3 instead of computer

  • flyingdutchdog

    Posted Aug 26, 2009 12:17 am PT

    @Ehggsz
    Keep telling yourself that ... I'm sure you believe it ... As for my PS3, it is a far and I mean far second to my 360 ... whistle and the dogs will come like sheep.

  • king_chapeton15

    Posted Aug 18, 2009 5:53 pm PT

    well sony did a price cit already so this wont be happening

  • kentuckyfried00

    Posted Aug 10, 2009 4:42 pm PT

    Screw Activision. If they drop the ps3, I'll just get their games on the PC through less than legitimate methods. If they think my money (for ps3 games) isn't good enough for them, so be it.

  • LordRaymond

    Posted Jul 31, 2009 8:49 pm PT

    Activision would be dumb to drop the PS3 and PSP which means they will lose their profit from game sales from PS3 which COD4 and World at War brought them at least $300 in revenue.

  • Ehggsz

    Posted Jul 31, 2009 2:33 pm PT

    @mtlthor

    Isn't that something? Xbox360 console sales were up only due to the pathetic quality of the systems that made people purchase more 360's. And I'm sure it's true to a certain percentage that the rise of PlayStation 3 consoles is due to 360 owners getting tired of their system breaking down and ending up buying another one over and over again.

    As for Activision, I could care less. They don't publish any games I'm interested in. Modern Warfare 2 maybe, but I can still do without as I was easily able to refuse the first MW.

  • mtlthor

    Posted Jul 29, 2009 9:52 pm PT

    the reason for the xbox 3s*$^y sales doing well is because the system craps out forcing users to have to buy the system again. the ps3 has far less problems and is made a whole lot better. i think that xbox is mad that they dont have a blu-ray and they went with hd dvd.

  • Letmekilluplz

    Posted Jul 29, 2009 8:24 pm PT

    Good thing I have a PS3 and Xbox 360

  • bloodshot191

    Posted Jul 26, 2009 11:37 am PT

    I think microsoft is paying activison to do this cause the xbox elite cost just as much as a 80gig ps3

  • ShadowDragon720

    Posted Jul 18, 2009 4:41 pm PT

    I sure wouldn't mind a PS3 price drop. However, I'll still get the system once I rack up enough money later this year.

  • booty56

    Posted Jul 12, 2009 10:39 pm PT

    I think there is a conspiracy with Microsoft! I think Microsoft is paying game developers and web streaming sites like Hulu to boycott PS3. I mean PS3 owners can't watch things on Hulu anymore, because Hulu blocked PS3 owners from watching movies and shows on the Playstation 3. And Activision wouldn't dare to drop PS3, especially since CoD 6 will come out. But Microsoft will get rid of the competition any way.AND I MEAN ANY WAY!!

  • division_9

    Posted Jul 10, 2009 11:09 pm PT

    Why discontiue PS3 support?, Call of duty 4 modern warfare has tons and tons of fans, Modern warfare 2 will fly off the shelves across all platforms so cutting PS3's support would just be unreasonable from a financial standpoint.

  • xtoperchris

    Posted Jul 9, 2009 8:14 am PT

    This Kotick just want more money.. He's not even losing money on PS3 titles, it's just not as good as the other consoles' numbers but if you're not losing money, why drop it?

  • xtoperchris

    Posted Jul 9, 2009 8:11 am PT

    Sony was once the top selling console without being the most powerful hardware. Now, they want to have superb hardware but not selling that good. 23M sales is not bad for a 3 yr old console, it's just not as good as the PS2's sales figure. At the end of the day, price is what mainstream consumers look for and not the technology inside the console.

  • Cheesehead9099

    Posted Jul 4, 2009 5:36 pm PT

    robertwarnes yep your right. 360 costs jsut as much as PS3 does the reason its cheaper is cuz MS disguises all of their costs, and make the system cheap itself s the everyday consumer will buy the system that is cheaper at first glance. But when you start adding on all these extra things like Xbox LIVE and The wi-fi adapter, yoou'll realise that the 360 costs just as much as the PS3. but, rest assured, the wii has been selling like crack cuz its thre cheapest and cuz of nintendos cheap tech motion controller, so the xbox360 will keep selling like that until people start to realise the value in a system thats priced higher. I mean they buy friggin gucci purses at like 1000 bucks but say o well the 360 is cheapar so ima buy it woohoho

  • Spartan_Legend

    Posted Jul 3, 2009 7:10 pm PT

    I agree, however I think it wouldn't be so bad if they lowered the PS3 price a tad bit. Say...$350? XD It would save 50 bucks on purchasing. XD Another thing is personally I don't think they're losing profit selling on the PS3. -.-

  • robertwarnes91

    Posted Jun 29, 2009 11:14 pm PT

    PS3 overpriced? Is Activision crazy? The only reason the Xbox 360 is so cheap is because very little comes standard. Once you add the Wire-less add-on and a rechargable batteries, as well as Xbox Live fees, your payng as much as it would cost to buy a PS3.

  • delcidanddarth

    Posted Jun 29, 2009 12:55 am PT

    @DarkFireGod69

    Wow... you are really fudging on the details. You are suggesting that the development costs are so high on the PS3, that even if Activision generates $300 million in revenue from two games on the PS3 (games that are cross-platform), they are losing money. If that were true, then nobody would make games for the PS3, because if anyone can turn a profit on the economically weakest console, then a large publisher like Activision can. Actually, they DO make money... they would make more if everyone who owned a PS3 owned a 360 or Wii instead, but that's not really his decision, is it?

    As I've said before, let Kotick put his money where his mouth is, and try to drop support for PS3/PSP (if his shareholders even let him). He'll save the few million dollars it would cost to port the cross-platform game to PS3, but he'll lose a few hundred million in sales.

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