Crap Detector: Activision CEO threatens to stop supporting PS3
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Kotick wants more Guitar Hero sequels.
Activision CEO Bobby Kotick has threatened Sony to cut the price of the PlayStation 3 or the publisher would ditch its PlayStation development. Kotick spoke to The Times, saying:
I’m getting concerned about Sony; the PlayStation 3 is losing a bit of momentum and they don’t make it easy for me to support the platform. It’s expensive to develop for the console, and the Wii and the Xbox are just selling better. Games generate a better return on invested capital on the Xbox than on the PlayStation.
Kotick says Activision paid $500 million to Sony in royalties last year. He adds:
They have to cut the price, because if they don’t, the attach rates (i.e. the number of games each console owner buys) are likely to slow. If we are being realistic, we might have to stop supporting Sony.
The Activision CEO is looking at ditching Sony in 2010 or 2011, and might even drop the PSP as well.
Remember, this is the same guy who let go of Ghostbusters, Brutal Legend, and the new Chronicles of Riddick because they “don’t have the potential to be exploited every year on every platform with clear sequel potential and have the potential to become $100 million dollar franchises.”
I’m all for a PS3 price cut. Who doesn’t? But this is where the crap comes in:
Why is Activision running after people who don’t own a PS3 when they should be selling their games to the existing console owners? The market IS there, and it’s huge—22.73 million as of March 2009.
If there’s anyone doing a price cut, it should be Activision. Their Guitar Hero plastic controllers are at least $20 more expensive than Rock Band’s. And what’s this bit about attach rates slowing? Remember, attach rate means the number of games each console owner buys.
Remember: more console owners (i.e. a larger install base) doesn’t guarantee a higher attach rate. Look at the Wii, for instance. The Wii has a huge install base, but their total software sales are lower than that of the Xbox 360’s. As of November 2008, the 360’s software sales total at 126 million, while the Wii is at 96 million. Ask The Washington Post.
If Activision wants more console owners to buy more Activision games, the publisher would have to do better than selling their Guitar Hero packages at a difficult $190.
Of course, there’s also the matter of incompatibility between the PS3 and PS2 Guitar Hero controllers. If Activision is wondering why people aren’t too crazy about buying their overpriced plastic instruments, they should look no further.
A word of advice, Bobby: stop the threats. Your market is there—you just have to make your games more palatable on the pocket.
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