Last month, evil publisher Activision caused quite a stir when nefarious CEO Bobby Kotick hinted he might have to stop supporting the PS3 if a price drop didn't come soon. This was essentially a threat, and a very large one coming from such a powerful and influential publisher. Sony, however, is Sony, which means they're not taking the threat seriously -- at least publicly.
"He certainly likes to make a lot of noise," says Sony's Howard Stringer of Kotick. "I lose money on every PlayStation I make."
Stringer also attempts to downplay the nature of the threat: "He’s putting pressure on me and I’m putting pressure on him. That’s the nature of the business."
Sony's being nothing but pigheaded about the PS3 price, arrogantly acting like it's still in charge of the game industry and calling all the shots, which simply isn't the case anymore. It's like watching a former rock n' roll legend still screwing 18-year-olds and doing coke, blissfully unaware that he's become less and less relevant and needs to buck his ideas up before his withered body gives out and dies.
While a lot of this is surely public bravado, I can't help but feel that Sony is talking itself over a cliff. Perhaps it should just stop all its executives and PR people from talking, at least for the rest of the generation.
Jim Sterling serves as reviews editor for Destructoid.com, head of the Podtoid podcast, and produces a number of news stories, original features, one-of-a-kind videos. With his passionate argumentative style, controversial opinions, harsh delivery, and dedication to brutal honesty Sterling is a name that you can't help but recognize.
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Truer words have never been spoken!
While I'm not Sony's biggest fan, it's not them that's being pigheaded – it's Kotick. A price cut for Sony means a lot in lost profit, so you can understand why they're loath to lower the price. They will do it, certainly, but not now. Activision knows this; they know the price cut is coming, and yet Kotick felt the need to shout his mouth off, flop his balls on the table and make a threat that probably has no substance behind it whatsoever. Kotick just wanted to look good and in the process decided to kick Sony when they're down. It's pretty pathetic, in my opinion.
If I were Sony, I'd be really pissed at Kotick but also recognise the fact that it's just a power play and nothing personal. Regardless, it's kind of a dick move, whichever way you look at it.
While you may think lost sales, the truth is the PS3 market most likely overlaps with the 360 market and people who own both will jsut buy on their 360's. People who own 360's will have less of a reason to buy PS3's and the attach rate of titles to PS3's will drop, making it less of an incentive for other publishers to stick with them.
Activision is large enough to put the nail in the coffin.
Sony is clearly trailing behind in market saturation, and the high pricepoint of the console is only keeping more consumers at bay. Something needs to be done to make the PS3 more accessible or else the distance between the two consoles will be so great that it may affect multiplatform releases' quality or availability on the system altogether.
It's in Sony's best interest to improve every aspect of the PS3 (from price to functionality to software library) to make it more competitive in the marketplace.
Sony isn't going to go bankrupt, just because you people think you're entitled to something. They have every right to keep the price point at it's current level.
And Activision, they can bite me. When I see their brand new games drop in price, from $60, to $50. Then they can start crying about the PS3's price point. Until then, they're more 'pigheaded and arrogant' than Sony. At least they've been selling their console at a lost from the get go.
Just because YOU can't afford one?
They will drop their price, but they will do it when they're ready, when their plan says they should, not before.
Sony are the long term horse in this race, they're currently selling at a loss, but hitting sales targets and supplying a superb product at what is, for such a top notch product, a reasonable price.
They are doing perfectly well in a different market to nintendo and Microsoft, the PS3 is in a different league.
Casual Gamer - Nintendo
General Gamer / Cheapskate Gamer / Welfare Kids - Microsoft
The Gamer that wants all the features, future proof hardware, blu-ray player etc etc - Sony.
It's as simple as that, it's not really a competition, they are designed for different people. If Activision think that the Prestige, well off gamer market is not enough for them to bother then fine, fuck them. They're only saying it because of making multiple sets of instruments, they'll still come crawling back when they want £50 wor Modern War 2, even if they don't want to bother giving us more guitar Hero - fuck them.
Xbox fanboys, like jim, seem to have forgotten that Blu-ray is the new film media, it's got it's foot in the door, and once this recession lifts it will take the place of DVDs, the PS3 is CHEAP for a blu-ray player and a top notch console.
And yea, did Sony issue the same statement to Tecmo Koei?
...I sure would like to get a Ferrari at a discount.
Very well said Fantus - couldn't have said it better myself.
Too many people seem to be under the false impression that a PS3 and an Xbox are WORTH the same amount.
Some people want a Ferrari and are willing to spend to get one, others will settle for a Lexus. That's it, and that's all it is.
http://www.gamasutra.com/php-bin/news_index.php?story=24243
Are you done with your Sony worship? Because if you are maybe you could finally think a little bit and realise that your argument is stupid.
The Ferrari argument would only apply to this case if a consumer said he wouldn't buy a PS3. That's not the case here.
Activison ist one of the largest publishers in the world and they hold a hefty chunk of AAA-Titles to be released on both consoles. If their threat was in fact serious, Sony would have every right to panic. In fact they would have to. They would have to face the fact that now COD, Guiter Hero and everything else developped by Activision in the coming years would be console exclusive to the 360. That's even bigger than Square Enix abandoning the N64. And we know how well that console did after a blow like this.
To get back to your Ferrari argument, this would compare to all Amercian fuel stations agreeing to no longer sell fuel to Ferraris. That's the scope we're dealing with here. Stuff that could break an entire company's back. (OK not Sony's because they got all their other consumer electronics divisions, but it would mean a definite end to Sony Computer Entertainment.)
(such as the Pixeljunk series, Flow, Flower, or possibly even the full fledge games on PSN such as Burnout, Warhawk, or SOCOM)
You don't buy a console because there's an off-chance that a third party distributor will trip over itself and publish a decent title. You buy a console, because of the exclusives that will never, ever, hit PC. Which Sony has cornered the market on. You can have your Guitar Hero. I'll keep my Gran Turismo 5. The _only_ reason I bought a PS3, at the original price point, with backwards compatibility. You people just want shit for free, and to be honest, screw you. I support Sony's pricing fully.
This is the best argument in the thread. Oh yeah, well you're poor! LMAO.
In truth, Sony is working hard this generation after taking some risks that didn't pay off as they were hoping. And calling out Kotick's statement as simply an attempt to put pressure on Sony is probably a good idea for Stringer... as long as Kotick (or another publisher) doesn't have the balls to follow through with the threat.
Hey man, don't call me a fanboy. I just want a cheap Ferrari. :)
Seriously tho, I thought the whole point of people and publishers wanting Sony to drop the price of the PS3 was that so more people would buy PS3's. And there for, Activision could have more copies of their overrated games sold across all consoles.
I think the most important thing here is that Sony can't just give in and do what the publishers demand, when they demand it. It's a sign of weakness. And also, if Sony were to even give the slightest impression that they were going to drop the price, i'm willing to bet that you would see current PS3 sales drop like a rock. Because everyone would be waiting for the lower price. So Sony has to make damn sure that people understand that this is the price you pay. Until WE say otherwise.
At any rate. I'm not a fanboy. Unless we're talking about games in general, then i'm definitely a fanboy. :) And I like cheap Ferrari's.
And that has what, exactly, to do with the developers/publishers needing to recoup their costs for each game they develop? I can't speek for the devs/pubs, but I'm willing to bet that they want/need their money now... not spread out over some 10 year plan.
"... and supplying a superb product at what is, for such a top notch product, a reasonable price."
What... you mean a superb gaming machine? Sorry, but the market is speaking for itself. There's two other consoles out there which have been hacked and piracy is rampent. One is a hardware flop, and the other is considered a "toy" or "gimmic" by many, and yet they still sell more consoles and have a higher attach rate with their games/accessories.
Or did you mean a superb BluRay player? Because that arguement doesn't fly anymore, either.
Yes, Sony did "a lot" to improve their pricing over the years, but they also were fucking assholes for putting the starting price at $600.
Sure, PS3 sales might be "meeting target sales figures", but I think we all know those figures were "readjusted" lower after it was clear that the PS3 wasn't selling as fast as first predicted. And it makes no sense for Sony to stick to a rigid plan and not adapt to the market, especially for a console that is supposed to last 10 years or more.
And Kotick is definitely being a dick by making a public comment like that, but it's pretty shrewd. That kind of comment could have been made privately to Sony and the message would have gotten across, but by making it public that greatly increases the pressure on Sony to drop the price. Kotick should try not to piss off his industry partners on a regular basis, but at the same time he does need to watch out for his ROI. It would be interesting to see what kind of return on investment Activision actually makes on the PS3, to see if Activision really is hurting by investing in PS3 games, or if they're just using their market share to bully Sony.
Seriuosly.
HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAAAAAAAAAAAAA....
No, I mean it.
HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAAAAAAAAAA....
Gamers want games machines.
Showoffs want all the fucking fuddly piddly wan that Sony lost this console war to put in their coked up little digibox.
Here is a free tip for you, son. Sony and the PS3 are two completely different things. Criticism of one thing is not criticism of the other. I love the PS3, I hate the way Sony handles it. Learn the difference, be an adult, and get the fuck over it.
No their argument is stupid because they compare something a consumer says to something a large supplier says on whose products you're dependent on.
Also you can keep your vaporware Gran Tourismo. I'll rather have my Modern Warfare 2 on my kickass PC. (I don't give a flying fuck about GH)
Also tell me why the hell the PS3 should be worth double the price of the 360? Because of a Bluray player? You've got to be kidding me.
For the price of a PS3 I could almost build a PC that is capable of doing everything the PS3 does. In fact it will do so even better. Ever heard of a graphical feature called MSAA?
It's what makes even straight ports to the PC still look better than the console version. In fact the only thing that would make said PC more expensive than the PS3 is the damn Windows-Licencse. But that licencse allows me to do so much more on an actual PC. (Games, decent Browser of my choice, Office, Mail-Client, actual applications, better online System, Steam etc.)
Sony really doesn't have much speaking for it's console right now. The gaming aspect fails to deliver the feeling that the PS3 is indeed unbelievably more powerful than the 360. (Because it isn't. Due to some serious bottlenecks it's just a bit faster than the 360)
And it's multimedia-features are laughable in comparison to the by now very popular Home-Theater-PCs.
I dunno, man. I hate your articles, and not because they present a viewpoint that I don't agree with. Your armchair economics grow old and tiresome. Sorry. I came to this site to escape this kind of fanboy bullshit, and you're by far the worst perpetrator. Most of the people who read Destructoid have probably either bought a ps3, or are resolved to *not* buying one, so why waste our time talking about this pricecut issue when nobody gives a flying fuck? Stirring up the bees nest is, indeed, a valid and worthwhile pass-time, but for fuck's sake, vary it up a little.
I recently cancelled my gold account (Microsoft didn't make it easy) and now play my online games on the PS3 (I miss Gears though)
to the point, I heard a few people saying that the ps3 sucks because of price or that more people are loyal to the xbox or PC or wii, but these figures have to take into account that people are afraid of the initial investment and that generally, people are pretty stupid.
example; why do companies price things at xx.99? because something that's 999.99 looks a LOT cheaper than 1000
all of us dum dums
Sony 1st parties, rarely if ever publish for PC
MS 1st parties, quite often do.
My PC stomps the dogshit out of the PS3 and 360.
Games for Windows Live = Free = Xbox Live
I like games, therefore, I buy the consoles that are relevant. The 360, is irrelevant, as every game published for said console, ends up on the PC, with vastly superior hardware scaling.
Your fanboy idiocy, merely prevents you from gaining access to a very stellar selection of exclusives. Whereas, I've got my Gaming Rig, and my PS3. Tough shit for you.
In conclusion, my Gaming Rig, costs about 4 times, what I paid for an original launch 60g. I'm not wrapped up and concerned over 'pricing'. I play games. I don't whine, piss and moan to the manfucturer.
Get over yourself.
I'm off home to blast some fools in Killzone 2 while my PS3 records upscaled Hollyoaks for the Mrs. Probably watch a Blu-ray after dinner on my LCD in sweet sweet HD, depends what lovefilm have sent me, might just use the PS3 browser to watch some more Supernatural off t'interweb.
I spent a fucktonne of cash on my launch model PS3, backwards compatible and all the USB slots etc, and I smaile about what i got for that cash everyday.
That's all that matters to me. That and having a little chuckle when i hear yet another story about how a buddies 360 has shat the bed.
That is all.
The standard Xbox is only $100 cheaper than a PS3... maybe they just need to better educate people as to what they get for that extra $100.00.
The bottom line is that Sony's best interests as a company directly clashes with the best interests of their publishers. They want the PS3 price high so they won't lose as much money; the publishers want it as low as possible so they'll get more software sales.
It's a shitty situation for everyone involved.
And just so you're aware of the 'why's'....not that it doesn't take 3 seconds to look it up yourself. (I understand that as children, it's easier to sit around and rail against the unknown, whereas, when you grow older, you tend to not want to make yourself look like a dumbass for complaining about what you don't understand. That having been said, it's quite simple why the PS3 costs as much as it does to create.
2 Brand new technologies that are not yet commercially available, and therefore, have no competition to drive down the prices. Those two being, XDR RAM (The fastest RAM on the planet), and the Cell Processor. XDR is not available to the public, and is only made by Rambus, the Cell Processor, again, has 1 manufacturer, is not available to the public as such, noone's driving the prices down on it. Blu Ray, while still a major cost factor for manufacturing prices, is still going to cost a pretty penny, given that standalone BR players (not PC drives), still cost over $150, brand new. So, you think the Cell + XDR Ram + Blu Ray + the rest of the PS3's makeup (pieces parts, Wifi, cooling, etc...) are less than $400? Well, you'd be wrong, current estimates still show the PS3 manufacturing costs are at $449. This is from an idependant analysis by isuppli.com.
and i think its kinda funny that game publishers are complaining about the price. of course, they want the price to be zero. they dont care if sony loses a trillion dollars a year. sony should be responding by saying that activision should sell its games for a loss. WOW should be free! Guitar Hero should be $1! Bobby K should stfu.
Mircosoft has realised that shooting, cool armour and lots of red and brown sells games
Sony had realised that high numbers on specs and a brand name let's you go wild with prices.
Gaming Generation Seven sucks. Now can we all please get along.
Disregarding the fact that Jim tought me to not react to people without avatar...
I have a bloody i7 System and the only thing that would need updating is the graphics card which I'll update from an ATI HD4770 once the DX11 cards arrive. So yeah my machine also cost a lot more than a PS3. Hell my soundcard alone set me back 140€ (Yeah I'm audiophile). So don't give me that shit with "real" games. Crytek's games may look absolutely fantastic but the gameplay is still mediocre. Also I like my multiplayer titles to run in 60fps, which bloody Crysis still can't do on full settings 2 years after it's release.
And no I'm not a fanboy. Yeah I bought a 360 during the time I had no decent gaming PC so what. I wanted to play Mass Effect, GTA and so on. And because I'm not a fanboy I also will not miss out on games on the PS3. I already know that I will buy a PS3 eventually. Once the bloody thing drops to 199€ it's going to be mine. There is no way in hell I'm going to spill out 400€ for such a gimped system. By the time the PS3 hits that price most of the exclusives will be available for 30€ or less too, so I'll save money twice and still get the same games.
It doesn't make half a shit how much capability the PS3 has, it all comes down to this: Sony got too cocky coming into this gen by forcing the Bru-rays, adding built-in WiFi (which sucks for gaming anyway FACT) and unusual CPU architecture leading to a nice, but expensive system, the cost of which is still biting them in the ass. And as their company isn't doing well, they can't afford to eat more of a loss with a price drop. Period. End of story. I love my PS3, but some of you guys are utterly fucking retarded.
Ok for one last time
My PC is handbuilt to and I know why that is good.
And now for the really important part. Your argument just is stupid.
Yeah IBM does not sell the Cell to consumers so the price won't drop. You know why they don't sell it to the public? Because the bloody thing won't run on Windows that's why. IBM doesn't have the X86-licencse so they can't build CPUs that work with Windows.
And again I don't care about the Bluray. That format was doomed from the beginning. Just as the HDDVD. The increase in capacity was just way to small for those formats to matter. Digital distribution is already more popular than the oh so wonderful Bluray. All disk formats up until now only were successful because they were very successful on the PC-Market. At their given time CD and DVD were a far cheaper long time storage solution than HDDs. Try that with a 25GB Bluray at 10 bucks, when an 640GB HDD will only set you back 50. Those formats are already dead. I for one will wait for this which actually promises to be attractive for use again.
Oh and just to destroy your argument completely. I'm nineteen. So the arbitrary "kids-bash" is totally worthless and only makes you seem ridicoulous.
If your system can't run Crysis:Warhead @ 60fps, then it's a PoS. I run at enthusiast, at over 60fps. Probably something to do with ATI's crappy drivers. And your opinion on gameplay, is just that. I find it quite amusing to kill people with chickens.
if only console wars were won with fanboyism, Sony would have already won this generation and the next.
I don't understand this. I've written well over ten stories this week. This post is only one of them. Some of the stories are about Nintendo. Some about Microsoft. Some about Sony. I don't know how much more varied I can get, pal.
Plainly put, Blu Ray is the easiest way to deal with Hi-Def, across the highest spectrum of people. Period. Broadband connections, cannot support tru 1080p with Lossless audio. If that were the case, the major cable distributors in the US would be doing so. Which they are not. Until the broadband infrastructure of the world, is to a point where it could support mass adoption of hi-def downloads. Blu ray is the only way to go, IF you mind cutting corners. Some don't have the TV/Sound System to support that. I however, do. (And, I'm 30 by the way, so yeah, you're a kid).
Just to reiterate, just because you don't see the need for Blu Ray, doesn't mean it doesn't cost anything to manufacture. It's in the PS3, and therefore, it costs money to put in there. Deal with it, or don't. I really don't care. But, don't rail against the price just because you avoid taking into account certain aspects of its makeup.
The only people I know who own PS3s have rich parents who either buy it for them or pay for 90% of their living expenses. While I'm sure nobody on here will admit to that, I know a good 10-12 ps3 owners and they are ALL like that. So yeah, maybe that argument works when your parents are footing your life bill, but for everybody else in the real world, $400 on a gaming system isn't worth it.
I will admit it is a little more justifiable than when it started; when the PS3 first came out we didn't know if it or HD-DVD would win. Can you imagine if you'd thrown $600 on the PS3 and HD-DVD had won out? And now, with digital distribution pretty much consuming everything, will Blu-Ray really be around as long as we think?
They need to price cut it. A price cut would mean more sales, which would mean more game sales. I honestly think they'll cut it around God of War 3's release, just to promote selling their first party title. As for now, I really can't see it's exclusives worth $100-$200 more than the Xbox's.
Sony really screwed up this time, but the weird thing is they are making no steps to recover. Like at all. They could easily pull themselves out of the pit they've dug, but they are too arrogant. Every year will be penultimate to the "year of the PS3," and it'll never come.