
In an interview with British newspaper The Times, Activision CEO Bobby Kotick said that his company, the world’s largest publisher of third-party games, including mega-hit titles such as World of Warcraft, Guitar Hero, Call of Duty, and Tony Hawk: Ride, might have to stop supporting releases for Sony’s PlayStation 3 and Playstation Portable consoles unless Sony drops the price.
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. 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.
Kotick added, “Activision’s royalties and other goods paid to Sony last year, totaling some $500 million, probably still worked out at 400 per cent of the profit they made.” Sony’s games division lost over $597 last year, and Kotick’s statement seems to indicate he thinks the company’s losses will mount if they don’t adjust the prices on their consoles.
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