Activision CEO thinks PS3 needs to hit $199 sweet spot

by Nick Doerr { Nov 28th 2007 at 7:15PM }

Two years from now, Activision CEO Bobby Kotick believes, the PS3 and 360 need to hit the $199 console price sweet spot or die in obscurity. We're exaggerating, but the fact remains he believes that price is what will gain both consoles a mass market appeal. This is sort of like saying sugar is sweet. At that price, how would the mass market not get interested in the two most powerful consoles on the market?

He made this point by pointedly pointing at the Wii. "he Wii at its price point is now setting a standard and an expectation, and people say, well, the Wii is less complex technically. I don't think that really matters as much to the consumer ... you can imagine Nintendo will be down to the $129 price point over the next few years." This is the reasoning behind the $199 sweet spot for the PS3 and 360. Don't quote us or anything, but with all the price cuts both consoles have had recently (PS3 in particular), hitting $199 in two years isn't likely. Still, at that price, everybody would have all three consoles for the price of one, sort of.

Tags: activision, bobby-kotick

Reader Comments (Page 1 of 1)

HektikLyfe @ Nov 28th 2007 7:21PM

Who here really believes the Wii will still be around in a "few years?"

Even in the odd chance that it might be, will there be another first party Mario game by then?

Here is my Wii game list by 2010.

Zelda: Twilight Princess
Mario Galaxy
Mario Kart: Wiiiiii
Wii Sports
The inevitable Wii Sports sequel
..and uh, whatever other Mario game is released by then.

Frank @ Nov 28th 2007 7:38PM

What does that have to do with his argument? He's saying the wii is selling like nuts, ps3 isnt as much. So that leads him to believe that the price, not necessarily the power/graphics is whats most important to consumers. Your argument is MOO.

Popfrogs @ Nov 28th 2007 7:38PM

You forgot Super Smash Brothers 25.

gamerz22 @ Nov 30th 2007 2:17AM

Are you special minded? Nintendo is release their first party games faster than the PS3 and those games are getting very high ratings! I'm not saying Wii is better, but don't try to flame another console if it isn't doing anything wrong...

It just shows how valuable your opinion is...

kyle @ Nov 28th 2007 7:42PM

frank, if his comment is MOO then you're probably OINK. im kidding, but it made me laugh so hooray!

Frank @ Nov 28th 2007 7:51PM

It was a known misspell.

http://www.youtube.com/watch?v=fLwYpSCrlHU

kentuckyfried @ Nov 28th 2007 9:55PM

Price is very important, even if it isn't to us on ps3fanboy.

I've been hearing people chiming in about how they don't want to upgrade until the price comes down to at least $250.

Good luck on that happening anytime soon. ;)

Parker @ Nov 28th 2007 7:52PM

In two years all Activision games need to hit $19.99...

Dehshizknight @ Nov 28th 2007 8:23PM

Lol, I commented on the Joystiq version of this article just today.

Yeah, I don't think this guy is in the place to price hardware, especially considering the PS3's components, I doubt it will get THAT low.

Michael Torres @ Nov 28th 2007 8:52PM

To say that people aren't interested in graphics or power is just un-American, or not in accordance to the world. The Wii is something new and something different, but in the end, the next-generation of anything is always sought after.

massive_98 @ Nov 28th 2007 9:08PM

@9

Do you go to St.Francis High School in Calgary, Alberta? If you do I know you.

Wow, that sounds kinda creepy.

massive_98 @ Nov 28th 2007 9:09PM

Damn, that was for Michael Torres. Not you kentuckyfried.

Michael Torres @ Nov 28th 2007 9:36PM

Nah man, I went to high school in Texas. I keep forgetting that my name is auto-populated in name field.

@everyone saying the price:

I do agree that price matters, and even though this is PS3Fanboy, this applies to the XBox 360 as well. Parents and casual gamers like the Wii cause it is popular and not expensive. People will adopt the PS3 and Xbox 360 regardless of the price, but obviously the more affordable it is the better adoption rate, but just like cars, clothes, and other merchandise, people want the best, greatest, latest. All you have to do is look at Ipod compared to other players.

Neon @ Nov 28th 2007 10:19PM

I completely disagree with this guy. I have an HDTV, a PS3, and a Wii. My partner (who doesn't play video games mind you) asks "Why does your Playstation look so much cleaner than your Nintendo?" (referring to the resolution max differences).

I had a Wii for 3 months before I got my PS3. Now I am JUST returning to playing my Wii after a 6 month hiatus with my PS3 and a number of great games (that granted, were a bit late in getting to us).

I also use my PS3 to stream video, music, and share my vacation photos as well as act as my upscaling DVD player and Blu-Ray player.

I have an 60GB version and I think even at the $600 I paid for it, it is a great machine, multi-functional, and well worth the price because of all its features.

doclloyd @ Nov 28th 2007 10:21PM

I agree with @Parker about the price of games... while it's all fine and dandy they want consoles to reach $199, I think there eventually needs to be some evaluation of game pricing. Personally, I think hard about games at $60 a piece. $40-50 based on the complexity/size, for me, makes purchases more palatable. I understand there's costs to be recouped, but with some volume, can't some of that be covered too? This could also explain why Wii (and most PS2) games sell well... those games aren't starting at $60.

RazielDune @ Nov 28th 2007 11:38PM

yes he wants 199 and he'll get it in 3 to 4 years 299 maybe half to 2 years from now. to think everything can be priced that low along with the serious lacking Nintendo Wii not saying the Wii is Genius with its lower graphics and waggle wand and i love my wii every other like 3 to 4 months when a GOOD game comes out for it....ahh the best dust collect i've ever bought. but seriously i think the lowest we'll see PS3 and Xbox is 299 in the next 2 years at least their lowerend models.

nihillasohen @ Nov 29th 2007 12:19AM

Does any know how long it took the PS2 to get to $199?

secret @ Nov 29th 2007 1:31AM

Sony thinks that COD4 should seel for $30 instead of $59.99.

blitzcloud @ Dec 2nd 2007 6:57AM

I dont see COD4 in the correct priced console, Activision.

Just me.. @ Nov 29th 2007 2:37AM

199Dollar? so 4 controlers will be more expansive then the console?? ain't gonna happen. By that time I'm SURE there will be no more dollar but Amero. At 199 Amero (same as 299 Euro) that would be more realistic. The PS2 costs 150 Euro now that IS 199 Dollar... I don't know but is Activision MAD? or just bad with a calculator? But PS3 fanboy how can you post this BS? Breaking news: Ferrari should cost the same as a Ford so it will be a bestseller...DUHH... jeez!

MisterTwoTurbo @ Nov 29th 2007 5:45AM

yeah, it's like saying ferrari's should come down to the prices of hondas because hondas sell 10 million a year, versus ferrari's poor sales rate of 20,000 a year. who cares right?

and this CEO guy obviously doesn't know the difference between markets. the wii is cheap. because you don't get anything else except motion controls. and is widely affordable by different age groups.

but when you look at people who are truely trying to upgrade into the real next-generation, it's the same folks who can afford a HDTV, surround sound system, PS3, or xbox360.

B1gC72 @ Nov 29th 2007 9:40AM

well 360, in a sense, is almost to the price point now so i wouldnt be surprised to see another gimped model at $199 in two years for them. but PS3 on the other hand, i could see it being around $299 in two years but i think $199 is pushing it. i could understand like a $50 price drop a year but thats $100 a year for PS3. but then again, if the competition is still whooping PS3 then, they may have to take drastic measures...

chris.westermann @ Nov 29th 2007 10:02AM

The only thing that will die of obscurity in 2 years will be the Wii. I think Nintendo has made a big long term mistake in thinking that the Wii will hold out for the next 5 to 10 years with both the 360 and PS3 in play. EVERYBODY I know that has a Wii is bored of it, period. While its still a huge selling system its because its motion control is a huge gimmick, but people eventually realize that waving a controller around isn't as revolutionary as they first thought. Once people get over that gimmick, they are going to start wondering why they are playing the same games over and over again without any real innovation in game design and game play. Party and Bolwing and cutesy Mario games are only going to take the Wii so far.
If Nintendo is not developing a new console NOW intended to replace the Wii in 2 - 3 years, but with significantly better specs, they will be screwed, period. At any time Sony or Microsoft can come out with an accessory that duplicates the Wii's capabilities, Sony already has something more innovative in the PS Eye. If that should happen, Nintendo looses their ace in their sleeve. What Nintendo has done is throw all their eggs into one basket and they should never have used motion control as the only feature to base a new generation of games on.