Activision Talks Price Cuts, Motion Control, Digital Distribution
Video game hardware prices are the lowest they've been all generation - of course, they can really only go in one direction - but one publisher still wants to see 'em go cheaper.
Activision Blizzard was one of the publishers who pushed hard for a price drop around this time last year; they were especially concerned with the PlayStation 3. Well, Sony gave the PS3 its $100 price cut last fall and since then, sales have been soaring. However, according to MCVUK, Activision believes that in order for the industry to continue to grow, we're going to need another round of hardware price cuts. Speaking during the company's conference call, president Michael Morhaine cites the current economic condition: "If you look at consoles, I think you are going to need to see hardware price declines given the economic uncertainties that we have," he said. He also recommended to other game makers that they should work with the upcoming motion controllers for both Sony and Microsoft, because that kind of innovation is always crucial. Said Morhaine:
"You are going to need to see product innovations. And as you look at some of the new user interfaces that are coming out, I think those are certainly going to deliver some interesting product innovation."
Then he mentioned digital distribution, which "offers higher margin opportunities" and that "natural growth will occur naturally from expanding demographics." This is all well and good, but calling for another round of console price cuts might be jumping the gun; we just had some price drops late last year. But hey, I guess cheaper is always better, provided we get the same experience.
2/16/2010 10:34:46 AM Ben Dutka