Activision CEO "Would Raise Game Prices Even Further"
Let's face up to facts: the entire purpose of being in business is to make money. However, be that as it may, you should also try to avoid ticking off your loyal customers.
Activision has already taken a little heat from PlayStation 3 owners after CEO Bobby Kotick threatened to stop supporting Sony's machine unless they dropped the price. Analysts, developers and journalists everywhere dismissed this (it ain't gonna happen), but Kotick has made another statement that's bound to get some negative attention: according to Spong, Kotick said that if it was up to him, he'd "raise the prices even further" in regards to software. During an investor relations conference call, analyst Tony Gikas asked about the publisher's "comfort level" concerning the more expensive titles they have on tap (DJ Hero, Tony Hawk Ride, the Prestige Edition of Call of Duty: Modern Warfare 2, etc.). Activision president and CEO of publishing, Mike Griffith, issued a diplomatic response by saying there has been "very strong retailer acceptance and support for all parts of our plan, including...our price points." Kotick, on the other hand-
"And Tony, you know if it was left to me, I would raise the prices even further."
Yeah, well, that might not be the best idea, Bobby. But before everyone goes ballistic, he may have been referring to the standard $60 price of games, and if that's the case, he does have a point. We have to remind you again that 20 years ago, those cartridges we all loved cost $50 - $60 (sometimes even $70). Taking the extreme advances in technology and inflation into account, we should all be down on our hands and knees thanking the financial Gods that video games have magically stayed about the same price whereas by all rights, they could very well be a hundred bucks apiece.
Even so, Kotick's words won't make him any new friends in the gaming populace, many of whom look at Activision's holiday lineup and go, "um...well, I guess I can get one of 'em...."
8/6/2009 Ben Dutka
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Comments (111 posts)
NoSmokingBandit
Thursday, August 06, 2009 @ 10:52:10 AM
Activision is just talking out their arse again. Its pretty clear that they dont care about their customers much.
Gabriel013
Thursday, August 06, 2009 @ 11:39:34 AM
bxshotboi
Thursday, August 06, 2009 @ 4:32:43 PM
Bugzbunny109
Thursday, August 06, 2009 @ 4:44:51 PM
Ultimadesires
Thursday, August 06, 2009 @ 10:49:25 AM
Reply
NiteKrawler
Thursday, August 06, 2009 @ 10:59:15 AM
englishgolfer
Thursday, August 06, 2009 @ 11:07:26 AM
Corak
Thursday, August 06, 2009 @ 11:46:56 AM
ThePearlJamer
Thursday, August 06, 2009 @ 1:15:56 PM
Orvisman
Thursday, August 06, 2009 @ 1:19:47 PM
Now if only Amazon Japan gets on board. Either way, I've found a damn good import site that has had every import game I've wanted, even those out of stock at Play Asia and the like, at reasonable prices.
BeezleDrop
Thursday, August 06, 2009 @ 10:56:33 AM
Reply
Mamills
Thursday, August 06, 2009 @ 11:01:55 AM
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Activision doesn't really have much i want. i mean call of duty MW2 maybe. i don't play rhythm games and i don't buy peripherals.
(Those usually end up gathering dust somewhere.)
But i got MAG, Uncharted, The last guardian, Heavy Rain, GT5 and God of war 3 etc coming and will pre-order brand new just because, well... they are great games and the studios deserves it.
and that will be about $360 (maybe a little more Depending on what good down-loadable titles come along) spread across a few months.
but when it comes to Activision/blizzard, I'll just wait n get MW2 used off eBay or Craigslist.
I'm done with that jackass Kotick.
I know some people wont agree with me on this but meh... that's just my point of view, Either way my gaming Calendar lineup is looking great.
Bugzbunny109
Thursday, August 06, 2009 @ 11:03:28 AM
Reply
bxshotboi
Thursday, August 06, 2009 @ 4:37:24 PM
Bugzbunny109
Thursday, August 06, 2009 @ 4:46:58 PM
jaybiv
Thursday, August 06, 2009 @ 11:04:19 AM
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The historical price of video games is irrelevant, unless you look at EA killing the sports competition when 2K was selling their games for $20 less and EA had to respond.
Game prices are where they are because $50-60 is, and historically has been, the sweet spot for games.
Ben Dutka PSXE [Administrator]
Thursday, August 06, 2009 @ 11:08:09 AM
WorldEndsWithMe
Thursday, August 06, 2009 @ 1:49:51 PM
Last edited by WorldEndsWithMe on 8/6/2009 2:22:39 PM
bxshotboi
Thursday, August 06, 2009 @ 4:40:11 PM
mexgeo86
Thursday, August 06, 2009 @ 11:25:31 AM
bxshotboi
Thursday, August 06, 2009 @ 4:41:07 PM
Mr Bitey
Sunday, August 09, 2009 @ 10:41:14 PM
Mista
Thursday, August 06, 2009 @ 11:08:18 AM
Reply
bxshotboi
Thursday, August 06, 2009 @ 4:45:42 PM
Jawknee
Thursday, August 06, 2009 @ 11:11:37 AM
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About little Bobby here, I'm so effing sick of this tool opening his mouth. 60 bucks for a game is already high especialy for mediocre multiplatform games AND especially the ones Craptivison put out. This effing hypocrite can stuff it. I won't be buying any of their games. Not even MW2. This is it. I'm done with them. Screw you Kotex's!
Highlander
Thursday, August 06, 2009 @ 12:02:17 PM
thepill
Thursday, August 06, 2009 @ 3:37:15 PM
Highlander
Thursday, August 06, 2009 @ 4:20:18 PM
You can't "subtract for the economy". Inflation means that we pay more for the same product. Development teams have grown game complexity has increased leaps and bounds, so the costs of development have ballooned way beyond the old days. Since the cost of games hasn't even kept pace with inflation we're actually paying less for more as it is. Developers are, on the other hand paying more for games and selling them for less (in real terms). The saving grace is the increased market. But the margins on most games are razor thin, and a lot of games don't make a profit.
If they were to "subtract for the economy" and offer even lower prices on games their margins are such that they'd have to sell a boat load more copies to make money. At the end of the day, developing games is a business, it's a job of work and people have to be paid. If companies don't make a profit, they go out of business and people lose their jobs. Not a good situation.
anjpikapp3
Thursday, August 06, 2009 @ 11:22:31 AM
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IMO; What needs to be considered it a system that rates the game before it is released. A separate Sony team could be in charge of this rating system and they make the call of whether or not the game is worthy of a higher price tag...again, emphasizing on content of the game not just huge name game designers (ie EA, Activition, etc.). Just because it's a big name does not mean the game is going to be great and worth $100. And yeah, I could see how this could go bad...but it could be good as well, especially if the "team" is only concerned about game content.
Last edited by anjpikapp3 on 8/6/2009 11:29:01 AM
NiteKrawler
Thursday, August 06, 2009 @ 11:38:14 AM
Jawknee
Thursday, August 06, 2009 @ 11:46:38 AM
Last edited by Jawknee on 8/6/2009 11:50:52 AM
anjpikapp3
Thursday, August 06, 2009 @ 12:26:24 PM
Exactly....so it does not have to be specific to team but who sets the $60 price tag?? If CoD:MW2 came out and was $75 for the game would you still buy it?? would it be worth $75? what about GOW3? if GOW3 came out and was $80 would you buy it? I know I would....bc i know the series has been good and that the final chapter is a must have no matter the price.
If games went up to $80, yeah you would be mad but would that stop you (literally brick your PS3) from buying games?? NO. you paid to much for your PS3 to not buy games...we all did.
Jawknee
Thursday, August 06, 2009 @ 12:40:46 PM
WorldEndsWithMe
Thursday, August 06, 2009 @ 2:24:50 PM
Fane1024
Thursday, August 06, 2009 @ 3:33:47 PM
Ummm...it's one of the Seven Deadly Sins?
@Ben (admittedly off topic)
"Let's face up to facts: the entire purpose of being in business is to make money."
I would argue that the purpose of "business" is to produce goods and/or services that add to the well-being of the community; making money is merely a necessary consequence. If more businesses were run according to that dictum, the economy would be much more healthy.
@anjpikapp3 (second posting)
Like World, I wouldn't buy (any) game at $80 (barring peripherals, of course); hell, I almost never pay more than $30 for a game.
Oh, and FUCK Kotick.
Last edited by Fane1024 on 8/6/2009 3:47:14 PM
Douchebaguette
Thursday, August 06, 2009 @ 4:00:37 PM
And dude, greed is not cool. End of. You'd pay $100 for a game?!! Hell, if that were to happen we better hope consoles will be cheaper; the alchemy of equivalent trade.
Bugzbunny109
Thursday, August 06, 2009 @ 4:30:30 PM
You need to understand that without consumers, producers CANNOT exist. If MW2 was $80 some people will, indeed, buy it. But more people will buy it if it had a $60 price tag compared to the amount of people that would buy it if it was $80. There is a point when a product’s cost is too high, even if it is ‘high quality’. For example, look at $20,000 gold watches. It's is definitely worth it, but a lot of people don't buy it because they can't afford it. The same goes for video games. Not many people are rich, you know ;) Developers want all gamers to buy their products, not just the "rich-gamers" lol. If parents are concerned about the price tag of the ps3; you really think that adding the fact that the games cost $80 or $100 would be a good idea?
anjpikapp3
Friday, August 07, 2009 @ 10:24:05 AM
I understand most ppl will not like this change but we would have to live with it if developers decided to increase their rates. I'm not saying this (Kotick words) is the right thing but if one developer decides to charge more, what stopping everyone else??
If game prices increase, I'm sure mostly everyone will bit the bullet and buy the games (the good ones in their opinion) when they first come out.
Last edited by anjpikapp3 on 8/7/2009 10:25:14 AM
NiteKrawler
Friday, August 07, 2009 @ 10:38:52 AM
ThePearlJamer
Thursday, August 06, 2009 @ 1:18:17 PM
ThePearlJamer
Thursday, August 06, 2009 @ 1:18:19 PM
WorldEndsWithMe
Thursday, August 06, 2009 @ 2:25:48 PM
Ricochet
Thursday, August 06, 2009 @ 11:43:14 AM
Reply
Games I HAVEN'T owned in the PS3 (updated as of Aug 07, 2009)
Activision Demos: Check
COD 4: Check
Guitar Hero: Check
Prototype: Check
Other Activision products: Check
Congratulations Bobby you just took the $ from M$..... I hereby declare you as Bobby$Kotick.
MODERN WARFARE 2: CHECK! (Pre-ordered)
Jawknee
Thursday, August 06, 2009 @ 11:53:44 AM
Gabriel013
Thursday, August 06, 2009 @ 11:48:35 AM
Reply
I know Ben mentioned inflation but I would also offer this example as a counter:
How much did it cost to make Jurassic Park?
How much would it cost to make it now with the technology of today? A fraction of the original cost. Why does that not seem to apply at all to games?
The tools these developers have at their disposal allow them to do so much more at a fraction of the cost it would to have acheived the same 10 years ago. Yes, our expectations have increased but even so..
NiteKrawler
Friday, August 07, 2009 @ 1:11:52 AM
Highlander
Thursday, August 06, 2009 @ 12:00:20 PM
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Wake up Mr Kotick I have some numbers for you. Sony spent development money in the BILLIONS, yes capitals, of dollars to develop the PS3 and you have the gall to demand that they take further financial loss by reducing the price of the PS3? And at the same time you spend 10s of millions developing games and yet charge $60+ for them, and want to raise your prices?
What the hell!? You know what? I'm usually very loathe to make extreme comments like this, but Bobby Kotick needs to shut the hell up, he's making a jackass of himself and Activision.
As for the serious point regarding game prices. If we took the price of consoles and games from the golden era of the 1980s and applied inflation, games would cost more, as would consoles. That is something people would do well to remember, and certainly older gamers should be able to. Inflation is here, it's been here, and it's not going anywhere.
mexgeo86
Thursday, August 06, 2009 @ 12:32:42 PM
The_Struggler
Thursday, August 06, 2009 @ 12:49:20 PM
te la meti 14
Thursday, August 06, 2009 @ 12:19:13 PM
Reply
Ben Dutka PSXE [Administrator]
Thursday, August 06, 2009 @ 12:23:51 PM
Reply
Sir Shak
Thursday, August 06, 2009 @ 12:57:15 PM
sunspider13
Thursday, August 06, 2009 @ 1:01:33 PM
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The only two activision games that I would like to play are CoD MW2 and MUA2. And I'm getting those suckers used, months after they have been out. activision has never gotten any of my money and they never will.
Sir Shak
Thursday, August 06, 2009 @ 1:09:04 PM
Reply
Ben Dutka PSXE [Administrator]
Thursday, August 06, 2009 @ 2:27:22 PM
The bottom line is that video games don't cost much more today than they did a quarter-century ago; hence, regardless of the circumstances, and considering the DIFFERENCE in games then and now, I really wouldn't complain.
Sir Shak
Thursday, August 06, 2009 @ 3:31:09 PM
Last edited by Sir Shak on 8/6/2009 3:31:33 PM
Ben Dutka PSXE [Administrator]
Thursday, August 06, 2009 @ 4:06:47 PM
aaronisbla
Thursday, August 06, 2009 @ 4:39:46 PM
Jawknee
Thursday, August 06, 2009 @ 5:11:40 PM
Jed
Thursday, August 06, 2009 @ 9:51:15 PM
WorldEndsWithMe
Thursday, August 06, 2009 @ 2:30:43 PM
aaronisbla
Thursday, August 06, 2009 @ 1:34:57 PM
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i highly disagree with your statement about being on our hands and knees. If prices were that high, like $100, the game industry wouldn't be where it is today, no way should a game cost 1/4th ( in the ps3 cases ) of the system you purchase it on.
Now if games were still cart based, i could see prices being higher but thats just not the case here
WorldEndsWithMe
Thursday, August 06, 2009 @ 1:35:24 PM
Reply
WorldEndsWithMe
Thursday, August 06, 2009 @ 1:53:07 PM
BigBoss4ever
Thursday, August 06, 2009 @ 1:48:38 PM
Reply
Robochic
Thursday, August 06, 2009 @ 2:19:30 PM
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Activision is like M$ money money who cares about consumers lets just keep pushing out crap and make the consumer pay for it. these two companies are made for eachother sony doesn't need that type of BS
Dustinwp
Thursday, August 06, 2009 @ 3:44:32 PM
Reply
Last edited by Dustinwp on 8/6/2009 4:01:19 PM
Alienange
Thursday, August 06, 2009 @ 4:10:53 PM
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When we were buying King's Quest for 50 bux it's because the studio consisted of 2 people who spent all year putting it together and their selling it to a very limited dynamic was all the income they got. Now we have money grubbers like Mr Kotick here who gets paid to do NOTHING but complain that prices of his products should be higher. I don't see how a huge company's overhead should translate into ME paying 80-100 for a game.
For that matter, we could argue that movies have bigger budgets today than they used to. Yet I find myself paying the same for a DVD of Lord of the Rings as I paid for a VHS of Disney's Aladdin 15 years ago.
And besides, it's not like prices haven't gone up. The prices HAVE gone up by minimum 10usd.
Last edited by Alienange on 8/6/2009 4:12:40 PM
aaronisbla
Thursday, August 06, 2009 @ 4:36:50 PM
Crabba
Thursday, August 06, 2009 @ 4:23:36 PM
Reply
First of all like some others have said, cartridge games were always a lot more expensive than disc/floppy based games, sometimes as much as twice as expensive.
Second, you are apparently forgetting that the same thing applies to basically all kinds of media like music and movies. In fact I'm pretty sure music CD's were even more expensive 10-20 years ago than they are today! Same thing with VHS/DVD movies, which cost just as much 10-20 years ago (if not more) as they do today.
Personally, I think $60 by itself is an absurd price for a single game and anyone with just an ounce of patience can get these games for a fraction of the MSRP.
Ben Dutka PSXE [Administrator]
Thursday, August 06, 2009 @ 8:37:01 PM
From my reasoning and if I want bang for my buck, I fail to see how you can complain, and I fail to see how $60 is "silly." It's actually extremely CHEAP, considering.
Jed
Thursday, August 06, 2009 @ 9:53:48 PM
Crabba
Friday, August 07, 2009 @ 2:03:30 PM
It's also pretty funny that the same people complaining about the PS3 being super expensive at $400-$500 (which is basically just what it costs to make the thing) happily pays $60 for a single game - a couple of those retail games later and whoops you just paid more than the entire machine just for a few games, DOH!
Even funnier, all these cries for a price drop of $50-$100 because they "can't afford the ps3", umm.. yeah that's 1-2 full price games, but you can afford them?
Oh and to Jed, well in that case games also didn't used to be a BILLION DOLLAR industry!! I wonder if these game companies can possibly make a profit, oh the poor buggers like EA and Activision, eh? I'm sure they're crying all the way to the bank.
About value, well movie budgets can be $100-$200 million dollars, games well not quite that high, and still you can get a brand new 1080p blu-ray for 10-15 bucks. Like you've said yourself Ben, it's not a question of how many HOURS of enjoyment you get, but the quality of the experience. If it was all about the hours, then I guess the Lord of the rings movies should be like twice as expensive as most other movies, right?
Jawknee
Thursday, August 06, 2009 @ 4:43:32 PM
photo K
Thursday, August 06, 2009 @ 4:38:10 PM
Reply
Games have hovered around $50 to $60, and that's not too bad considered the quality has gotten so much better. I would be just as selective of my game purchases if they were $70. I'm not one to go buy everygame out there, only the ones where I know for Sure i'd play it through.
bxshotboi
Thursday, August 06, 2009 @ 4:53:03 PM
Qubex
Thursday, August 06, 2009 @ 9:18:23 PM
www
Thursday, August 06, 2009 @ 7:45:35 PM
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Well anyway, all i have to say is Bobby's growing large fat chicken wings, he should slow down, these same critics could mess him up if MW2 gets lower scores, cause i'll tell you 80% gamers nowadays rely on reviews.
Hell, this guy is given MW2 a bad name and i don't like it.
kreate
Thursday, August 06, 2009 @ 7:53:38 PM
Reply
just to add, kotick does realize because of his threats/complaints (whatever u want to call it) to the ps3 and sony, his ps3 software sales will only decline right?
the point is to make money and one of the ways to do so is to keep the fans happy... or no?
or is he completely clueless of whats going on?
*i already decided not to play anymore call of duty games, the games werent for me, i only played it cuz everyone else likes it + hype. i beat call of duty waw in 5 hours (easy mode).
what a rip off IMO!
**but starcraft 2 and diablo 3 i am getting for sure no matter how expensive it is, i am a blizzard fan, too bad activision came in =(
Last edited by kreate on 8/6/2009 7:57:36 PM
Qubex
Thursday, August 06, 2009 @ 9:20:26 PM
Q!
"i am home"
Jed
Thursday, August 06, 2009 @ 9:58:43 PM
Reply
Last edited by Jed on 8/6/2009 9:59:44 PM
___________
Friday, August 07, 2009 @ 4:52:09 AM
NiteKrawler
Friday, August 07, 2009 @ 1:16:40 AM
Reply
___________
Friday, August 07, 2009 @ 4:49:52 AM
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how can someone be such a hypocrite?
how can someone so dumb and i dunno how to describe it, he complains how expensive something is than says games should be more expensive..... im lost.
ohhhhhh now i get it if its his product it should be priced higher so he can make more $$$.
if its not his product than it needs a price cut.
i thought you had to be smart hard working and honest to be a big companys CEO.
it sickens me that decent hard working people like my father who bust there a$$ every day to earn pickings loose their jobs just so this A$$ can keep his million dollar paycheck.
than these A$$ holes sit at their desk and shoot there big stupid mouth off and get paid millions of dollars.
if i was a share holder i would be demanding he be fired, hell even take him to court for slander.
boby you better prey i never see you in the streets because once im done with you you will be preying you were never born.
god i cant believe how stupid and selfish some people can be.
god ive never hated some one this much ever in my life, and ive had allot of fights.
go to hell you selfish a$$ hole.
___________
Friday, August 07, 2009 @ 5:02:26 AM
Reply
its ok for most people because they buy 10 or so games per year thats fine thats buckleys 600 (assuming there in the US) bucks big woop.
me last year alone i spent 5K on games and accessories and consoles, not including PC including PC would be over 10K.
now i dont know about you but to me 10K is a fooking shat load of cashola.
i dont care how expensive games are now compare to years ago, the fact is take a less selling game KZ2 sold what 2M copies (i know its less more like 1.8 but lets use 2 its easier) ok 2M copies at 60 bucks each so im selling short because oz NZ allot of places are spending more than that but meh.
ok $60 times 2M.
thats 120M dollars.
KZ2 is said to cost between 40-60 to make.
THATS A MINIMUM PROFIT OF 60 MILLION DOLLARS, WHAT 60 MILLION DOLLARS PROFIT IS NOT ENOUGH FOR YOU?
god game publishers are so selfish, i wished i made 100K per year yet alone what these lazy SOBs earn.
Last edited by ___________ on 8/7/2009 5:04:59 AM
bridgera
Friday, August 07, 2009 @ 11:40:31 AM
Let's see, bought 20 NES games for about $20/each, bought NES for $100, SNES for $100, 10 games for $15/each, PS2 for $300, 8 games for $50, 10 games for $10, PS3 for $500, 10 games for $30/each, 3 for $60/each, let's throw in another $300 for accessories. Let's say I spent $2k on my computer I built myself, including the price of games
400 + 100 + 100 + 160 + 300 + 400 + 100 + 500 + 300 + 180 + 2000
Gives me a lifetime total of about $4500.
Yep, you've definitely spent more on video games in 1 year than I have in 17 years of buying video games.
Sure, alot of those games I waited for the price to drop, because if you are willing to wait a year, a lot of games go to $20-$30. (That is less true today, a lot of games stay at $60 for years now).
Perry Katy
Friday, August 07, 2009 @ 10:02:44 AM
Reply
bridgera
Friday, August 07, 2009 @ 11:32:57 AM
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Go ahead Activision, jack it up to $100/game. Why stop, hell, drive it up to $200/game.
Just like with most games, if I see something I like, I'm not buying any of your products until they fall into the $20-$30 range.
Crabba
Friday, August 07, 2009 @ 2:14:09 PM
tanner1
Friday, August 07, 2009 @ 5:11:07 PM
Reply
Last edited by tanner1 on 8/7/2009 5:12:38 PM

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