Kotick Says Console Price Cuts Are Coming

Kotick Says Console Price Cuts Are Coming

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According to Bobby Kotick, the PlayStation 3 and Xbox 360 could have their prices slashed soon.

The pricing battle between the PlayStation 3 and the Xbox 360 came to a stalemate once both consoles hit their current spots at $299. However, a comment made by Activision CEO Bobby Kotick while talking about financial projections hints that the battle could be on again in the near future. Fight!

Speaking to the Financial Times, Kotick revealed some of the reason why Activision raised its projections $50 million for the calendar year. "We've more confidence in consumer spending, we feel like some of that has stabilized, and there are price cuts on the [console] hardware in the works," he said.

He unfortunately didn't elaborate on the cuts any further. The price of the Nintendo Wii was just dropped to $149.99 so he must be talking about the PlayStation 3 and the Xbox 360. It isn't the most concrete statement to go by, but as the boss of the biggest videogame publisher in town, Kotick probably has a little more insight into these things than the average Joe.

The PS3 and Xbox 360's prices have been in effect since approximately late-summer 2009 and are ripe for a good slashing, especially with a new Nintendo console coming to E3 2011 that's rumored to be more powerful than both. With Microsoft and Sony console successors believed to be approximately 3-ish years away, Nintendo could take the console crown again with proper timing, so price cuts seem like they'd be necessary to compete. I would expect the average $50 cut if Kotick's prediction rings true.

Source: Financial Times

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I'm definitely surprised the cut wasn't announced/speculated sooner, I've noticed that since December so many retailers have been offering the PS3 and 360 for their current price + $50 gift cards. Which usually indicates an incoming price cut.
Though I'm curious if Sony can really afford a price cut with the whole PSN being down and it costing them a lot of money.
If it does cut by at least $50 I'm probably going to finally invest in a PS3 since my 360 is region locked to the states while I'm stuck in Europe for 90% of the year.

Id prefer the cuts to go into the prices of dlc and downloadable games, the price disparity between a download on xbox and on steam when the games are on sale is ridiculous. Besides if you don't own a next gen console by now, you either don't want them or are so hard up financially that buying it won't matter because of the cost of games.

well ps3s are 100 dollars off at gamestop this month, so im inclined to agree.

Well, I'd have to think that Microsoft would have wanted to drop the 360 price somewhat right around last weekish or so, what with all the pissed of Sony fans saying "Screw this, I'm getting a 360." They might have been able to draw in more of those people with a nice price cut...

Rednog:
I'm definitely surprised the cut wasn't announced/speculated sooner, I've noticed that since December so many retailers have been offering the PS3 and 360 for their current price + $50 gift cards. Which usually indicates an incoming price cut.
Though I'm curious if Sony can really afford a price cut with the whole PSN being down and it costing them a lot of money.
If it does cut by at least $50 I'm probably going to finally invest in a PS3 since my 360 is region locked to the states while I'm stuck in Europe for 90% of the year.

Better to sell any they can at a discount then sell none.

OT: I'm only interested when I can afford one so... 2015 or so for me.

I kind of find it hard to believe that there are people out there who desperately want a PS3 or Xbox who are still holding out because of price.

These systems are pretty old now relative to the video game world. If you don't have one at this point, you might as well just wait another year for the next version.

But maybe this is just because I'm a middle-class white guy living in America.

First of all, Sony have to get their network back up.

Secondly, Kotick indirectly announcing price cuts in systems he has no stake in? He's just asking for assassination.

mjc0961:
Well, I'd have to think that Microsoft would have wanted to drop the 360 price somewhat right around last weekish or so, what with all the pissed of Sony fans saying "Screw this, I'm getting a 360." They might have been able to draw in more of those people with a nice price cut...

You know, that would have been a fiendishly good idea. Might have resulted in some backlash for their opportunism, but it would have been far from the most opportunistic thing MS has done with their Xbox. Like, say, using self-destructing motherboards and CD drives with a one-year life expectancy.

I have to use the towel trick every three weeks and the drive will often randomly decide to not read the disc, even when it's the first day I've had the game. Been thinking about getting one of the slims to solve these problems, but I have a hard time justifying it. I don't like the idea of rewarding Microsoft with another $300 just because my first 360 falls apart. I hope they do lower the price. In my opinion they should ship a slim to everyone who still has an original 360, but if they aren't going to build a good console in the first place, or even give a lifetime warranty for the issues that they are responsible for, then they certainly aren't going to do that.

Who doesn't have one or both by now?

Hey Bobby, how about lowering your games prices instead?

honestly it still amazes me why the consoles are 399 with hardware there is 6 years old...if you would go to a shot to get 6 year old hardware you could probably buy it for around 50 if not less

Azaraxzealot:
well ps3s are 100 dollars off at gamestop this month, so im inclined to agree.

Terrifying to think about, when you consider the original obscene launch price.

Muco5681:
honestly it still amazes me why the consoles are 399 with hardware there is 6 years old...if you would go to a shot to get 6 year old hardware you could probably buy it for around 50 if not less

Well, strictly speaking the hardware isn't 6 years old. The spec is 6 years old but they do tend to upgrade to smaller more efficient versions, bigger hard drives and such. In the case of the xbox - versions that don't die at random

I always love it when Kotick shows up in the news- his persona is that of a Dark Lord who only green lights sequels and threw the founders Infinity Ward out of their company for asking for human decency, but the fact that his surname means "A male cat"(addressed affectionately, as just "male cat" would be "kot") in Russian always cracks me up.

 

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