Activision loves $199 Prices...

by Derek Marler - 2007/11/29 1:08pm

Recently, Activision decided to voice their opinion and insight on the next generation console pricing. Apparently, they like the same number for all three consoles, that is, $199. According to Activision's CEO Bobby Kotick, PlayStation 3 and XBox 360 need to sell their consoles at the $199 spot, or they will die off soon... He believes and insists that dropping the price to $199 would let the two gain mass market appeal. It would increase sales (between the spitting on the current owners) but would it be wise?

As many know, the two companies (or at least Sony) are losing quite an amount of money on the hardware sales, while making up the investment on the software sales. So, could dropping the price further mean even more damage, or great success?

What it comes down to is how much they want to risk, how much their wallets can risk. The prices set now aren't too bad and lowering the prices wouldn't exactly appeal to the mass market as the Wii has shown. Speaking of the Wii, Bobby Kotick also decided to propose that Nintendo cut their Wii's price to $199. In my opinion, their success isn't showing the need for a price drop.

As for the other consoles, it is more that the market is limited to one type of group, so lowering the prices could increase sales, but not necessarily reach other consumer markets.