Sony CEO to Activision: PS3 price drop not happening

gotta say I'm not surprised.

MS and Sony both sell consoles below manufacturing costs to keep people buying them and the profit comes from the games themselves.

The costs to make a PS3 according to some sources is above $600 each so selling them at half that would be suicide for most companies but they do it knowing the money is there.

I know a lot of folks who have all 3 platforms in their homes and will buy certain games for each due to the superiority of the platform wth THAT game over the others and for a lot of folks the superior platform is the PS3.

Titles from Nintendo and MS will obviously be one their own consoles but there's enough diversity out there that there will always be a market for the PS3 at the current price point.

Sony probably wont lower the price because most people don't realize this but all new gaming consoles actually sell at a market value that is lower than the price it cost to manufacture them. So they rely on bulk sales in the biggest retailers to make their bottom line. I once knew an employee of Sony and back when the ps2 came out he said it would take at least a year from the date it was launched before they would finally start to see a profit. But Sony is truly in trouble because its been more than a year since PS3 launched and yet they probably aren't making any profit. The struggling of the PS3 probably wont completely undo Sony but it will definitely be a learning experience.

Why is Sony so hell bent on not lowering the price. The system isn't selling. PS2 stranglehold on the console world must have made them cocky, that or they just have horrible business sense.

I usualy think bobby kotlick is an idiot but I think he had got a point by threatening sony. i dont think he would have activision stop making ps3 games but it should tell sony that developers also want the price of the ps3 lowered because they are frustrated with getting underwhelming amount of sales of their ps3 games

"Activision needs Sony and Sony doesn’t necessarily need Activision and Kotick’s shots over the bow aren’t going to make the price drop one penny."

Incorrect and completely backwards. That attach rate on the xbox 360 is substantially higher than that of the PS3, and software sales are also generally higher on the 360.

Losing the likes of Guitar Hero, Tony Hawk, and the Call of Duty series would be damaging to the image of the PlayStation 3.

The PS3 is a beautiful piece of hardware, but it is no longer worth the inflated price. It was the best deal for a blu-ray player on the market, but that's long since ceased to be the case, and the lack of solid third-party exclusives makes it hard to justify the price difference over the xbox.

All that said however, should Gran Turismo ever ship, i may change my tune. :)

Fuck Activision and 95 percent of the games they develop/produce.