Stringer responds to price cut pressure from Activision

by JC Fletcher { Jul 8th 2009 at 10:00AM }

Sony's Sir Howard Stringer wasn't scared by Activision CEO Bobby Kotick's suggestion that his company may have to stop supporting the PlayStation 3 if the price didn't decrease. "He likes to make a lot of noise," Stringer said, discussing the statement at the Allen & Company Sun Valley Conference -- the same event at which, last year, he described the Wii as "an expensive niche game device." "He's putting pressure on me and I'm putting pressure on him. That's the nature of business."

If Sony cut the price of the PS3 as Kotick suggested, Stringer said that "I (would) lose money on every PlayStation I make -- how's that for logic." It's actually a kind of logic that Sony is quite familiar with, given that the company loses money on every PlayStation 3 it makes right now.

[Via Engadget]

Tags: activision, bobby-kotick, howard-stringer, price-cut

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Reader Comments (Page 1 of 3)

Rob @ Jul 8th 2009 10:06AM

Yay! Pointless executive feuding! But seriously I would like to see less arguing and more making me want to buy a PS3 (Price cut, *hint*)

Paul @ Jul 8th 2009 10:24AM

dude, just buy one used online. I got a 60gb and three games on amazon for $300. The guy packed it terribly and it was broken on arrival. He refunded my money and told me to keep everything. I got it repaired for $150. so I got a 60gb and three games for $150.

point of the story...buying new is for chumps

Storm Eagle::The Blood Edge @ Jul 8th 2009 10:28AM

Sounds like you're the chump Paul. I buy my merchandise new so I don't have to risk going through all that BS. You're lucky he didn't stiff you and leave you with the broken merchandise.

Maverick Saturn @ Jul 8th 2009 10:33AM

Storm is right, better safe then sorry

Paul @ Jul 8th 2009 10:35AM

that's the beauty of paying with a credit card on amazon. Amazon would've made sure I got my money back and if they didn't Visa would have.

by the way I forgot to mention I sold the three games and got about $80.
So I only paid $70 out of my own pocket for a fully backwards compatible PS3.

Maverick Saturn @ Jul 8th 2009 10:41AM

Amazon I'm especially wary of, you wouldn't have been the first person to get conned via amazon by particular idiots if you had, as the bbc news and several internet watching programs have stated time and time again, be careful when carring out transactions over the net, there is no 100% gaurantee everything will run smoothly, might have worked for you, but there are countless people who haven't managed to get refunded despite paying by card.

Jack Spicer PSN: watsuke @ Jul 8th 2009 10:45AM

I got my 60gb with 4 controllers, a bluetooth headset, 5 games including Killzone 2, and HDMI cable for 350 on craigslist. It also came with a PS3 carrying bag.

Buying new is for chumps.

Spartan @ Jul 8th 2009 10:44AM

I agree with Rob, Paul and Storm, actually.
A price cut would entice me to buy a ps3. Bargains are
there to be had in the pre-owned market, but nothing beats
the security of buying new.

Although I think I'd buy a second hand one from a reputable games store that gives a warranty, after a price drop. (best of all worlds)

XBL: Burritoclock PSN:Herbie Hat @ Jul 8th 2009 10:47AM

If you buy used on amazon from some one with over 5000 user reviews the odds of you having any problems are nearly zil (to use a technical term) I have been buying from Amazon (new and used) since 1999 and I have only had one slow shipping problem.

Storm Eagle::The Blood Edge @ Jul 8th 2009 10:54AM

Well I'm glad things worked out for you online purchasers. But don't come on here an make such an insult like "buying new is for chumps." Buying new is what allows you guys to buy used.

Rob @ Jul 8th 2009 10:55AM

I would agree that used is ok for games, but on something like a game console I would like to get it new, but that's just me.

Paul @ Jul 8th 2009 10:56AM

it's cool, I'm just trying to give some advice. I've been selling and buying used games on there for years. and in that time all of my gaming has essentially paid for itself.

Paul @ Jul 8th 2009 11:01AM

@Jack Spicer

high five

Maverick Saturn @ Jul 8th 2009 11:09AM

Well if we all were to buy used consoles, used consoles would cease to exist, who would be the chump then?

It takes the likes of me to want to sell my PS3 and several games to you in order for you to benefit from the lower cost, I may not get the full whack sum I paid for it, but when I got it was worth the price, especially considering a lot of the new buyers also bought from cheap sources like I did or imported it from elsewhere, if we were to take the view we don't want to sell it to you, once again used consoles wouldn't exist and you'd have to buy it new, this is coming from a person who ONLY buys new games when they are blockbusters, 98% of the games I buy are second hand or even free from freinds that have completed it, however, if I couldn't get the used games I wanted at gamestation, I'd be forced to buy new. Saying that, new consoles are within the warranty, used consoles can sometimes be within but can quite often be outside, so while you may have gotten it cheap, if it should happen to die a week after you've bought it, it means you'd have to pay to replace it, sometimes paying more overall then the person who bought it new.

That would have happened to anyone who decided to buy my first PSP should I have sold it, considering the damage had nothing to do with me and was just a fault with the PSP, several months after buying it, a potential buyer would not have been obliged to get a refund, considering there is little or not proof the fault is anything to do with me.

HAAS599 @ Jul 8th 2009 11:16AM

Nothing wrong with buying a used PS3. If you want a fully backwards compatible PS3, its the only way to do it. If you only have 250 bucks and want a PS3, its also the only way to do it. Better to have a used console then no console at all. Life is full of risks and buying a used console is one of the smaller ones.

Paul @ Jul 8th 2009 11:31AM

haha, my comments are grayed out! oh well, at least I'm not waiting years for a small price cut...like a chump!

XBL: Burritoclock PSN:Herbie Hat @ Jul 8th 2009 11:33AM

I don't buy game systems used, I was just pointing out that saying Amazon is some haven of scammers was a little over the top.

I think everyone is aware that used games have to come from somewhere... you know you wouldn't have used cars without the idiots buying new ones.

There do exist people without the money to "support" a multi billion dollar corporation.

8-bit.artist @ Jul 8th 2009 12:33PM

craigslist is the way to go. i bought my ps3 through the gamestop trade in your ps2 deal since i had an old ass generation 1 ps2. but 2 of my friends bought their ps3 off craigslist both for $250 (and one of them was brand new). now, thats just the console with a controller and the wires you need, but still. youll find a better deal off craigslist if youre persistent enough in looking than waiting for a ps3 price cut.

ebay is great for games too. i just bought LBP for $23 with free shipping. screw buying gamestop used games.

Obie @ Jul 8th 2009 1:05PM

@Paul: So waiting for a lower price is for chumps? So what are the people that bought the PS3 at launch for $599?

When I buy the $299 PS3 slim around Xmas, a champ I will be!

Now someone work in the word "chimp" somewhere!

Extinction @ Jul 8th 2009 10:33PM

I think Sony knows better than you guys. If he says they arent losing money on it now, I believe him over you clowns

Sayed @ Jul 8th 2009 10:09AM

New game idea:

Bash Kotick with an Activision logo until you get enough money for a PS3 price cut.

WINterfang @ Jul 8th 2009 11:04AM

I will play that game.

Hydrophobicfish @ Jul 8th 2009 3:18PM

I'd play it even if I wasn't rewarded with a PS3, or even any reward at all!

I just wanna bash Kotick.

Storm Eagle::The Blood Edge @ Jul 8th 2009 10:10AM

Oh man, the Power Gloves are coming off!

In this corner Sir Howard "The Ringer" Stringer! And in this corner Bobby "The Dick" Kotick!

Brackynews @ Jul 8th 2009 11:23AM

Lulz. With Tom Hanks as the referee. I can't think of anyone more impartial towards Sony. ;)

drdre74 @ Jul 8th 2009 10:12AM

Sony is full of it. They know that the price to make PS3's has gone down. Take some of that PS2 money to make up for it then and lower the price so more poeple can buy the ps3. I've had my ps3 since a little after launch so I'm happy either way.

Storm Eagle::The Blood Edge @ Jul 8th 2009 10:24AM

Is the PS2 even still profitable? I know it sold pretty good last Christmas but is it really worth it to support a machine that only sells well once during two months out of the year?

Maverick Saturn @ Jul 8th 2009 10:24AM

But PS2 market share is dwindling, it's nowhere near enough to cover the expences of the PS3, if that were the case, PS3 prices would have dropped ages ago, though it may be true Sony has cut costs in most areas, they would would to at least make some profit for a change before making losses again, constant losses is no good for the business or any future projects.

Storm Eagle::The Blood Edge @ Jul 8th 2009 10:25AM

Just answered my own question. PS2 Hardware sales are down 42% as of May.

cegmp @ Jul 8th 2009 10:55AM

They did went down. That's why from losing over a hundred per PS3 they are now only losing $40.

Mr Khan @ Jul 8th 2009 10:59AM

I remember reading that Sony used up all the hardware profits from the entire PS2 era in only a couple years of PS3

http://www.1up.com/do/newsStory?cId=3169439

Keep in mind that story is from August 2008

Jack Tretton @ Jul 8th 2009 11:21AM

"If Sony cut the price of the PS3 as Kotick suggested, Stringer said that 'I (would) lose money on every PlayStation I make -- how's that for logic.'"

I think Howie meant to say he'd lose *even more* money on every PS3 that rolls off the assembly line -- it's not in the black yet. Closer than last year but not quite there yet.

Given the economy, who thinks there'll be a PS3 price cut in the U.S. by December? And as for the Slim, if it launches in the next couple months as rumored I don't think it'll be at a lower cost -- probably a $399 bundle.

shem marcellin @ Jul 8th 2009 10:16AM

while I do think the ps3 is worth the price..many won't/don't know about it. All they're gonna see is just a price point..& like the guy above me said all this fighting is pointless..
on a side note my ps3 crapped out on me yesterday..well i think it did..it uh stays on for about 5 or so mins & then shuts off on it's own with the red light flashing..now i'm out of warranty n i so don't feel like paying $164 (with tax)..does any1 have any suggestions before i DO send it in or should i even bother trying anything?

Storm Eagle::The Blood Edge @ Jul 8th 2009 10:22AM

Poke around online and see if anyone else is having a similar issue. It could be something as simple as the power cord or the hard drive. You can just replace those parts yourself and for a lot cheaper that $164.

Azerael @ Jul 8th 2009 10:30AM

I'm hearing a lot about PS3's dying lately.

Probably not nearly as bad as the 360's consollocaust, but it seems to be becoming more common. Although, it seems to be more out of warranty PS3's dying than those under warranty - which sounds to me like Sony's back to their old dirty tricks again.

Maverick Saturn @ Jul 8th 2009 10:31AM

Mines been fine, its out of warranty.

CTC XBL-supapaypamawio PSN-ctclaw @ Jul 8th 2009 10:43AM

"Although, it seems to be more out of warranty PS3's dying than those under warranty"

You do realize things generally have a higher chance of failing the longer you have them right? I'm really annoyed with the lack of care that went into testing the consoles this generation. I've had my 360 RROD over 5 times and my Wii stopped reading discs. All my other old consoles still work just as good as the day I bought them.

Storm Eagle::The Blood Edge @ Jul 8th 2009 10:59AM

@CTC. I'm in the same boat you are. My original NES, SNES, Genesis, Gameboy(s) and all older consoles/games still work without a hitch. But my launch 360 has RROD'd on me 5 times as well. I hope that it never happens again and I hope that my PS3 goes without breaking. But you have to remember that consoles these days have a lot more going on inside them than they did 25 years ago and they're more susceptible to damage from drops and dust, etc. And the way it should be is as long as you take care of it, it should work for a very long time. Just like my older consoles.

Mo @ Jul 8th 2009 11:54AM

don't eat the fud.

all electronics are prone to failure... I have had no problems with my 60gb launch, my friends have no problems with their launch 20gb, or their 80gb bundles.

this is NOT an xbox folks. and before you start, yes playstations do fail. but out of the 19 people i know that have had them, many since launch, they have had no problems

HardBoiled2009 @ Jul 8th 2009 12:21PM

My PS3 won't read the Blu-Ray discs anymore and i am still mid use of my Game Pass i got for a month from BlockBuster it ends July 24th and now it feels like a COMPLETE WAIST cause my PS3 is fine except for the Blu-Ray laser i tried resetting files to restore things and everything else imaginable, now i have to call Sony and say Hi how are ya please send the Coffin and Resurect the Console back to Life Please ! kthxbai !

oh yea did i mention ... no Warranty .. yea i think i should mention that. that's $190 for me ( lives in Canada )

CTC XBL-supapaypamawio PSN-ctclaw @ Jul 8th 2009 12:26PM

@Mo

Yes, all electronics are prone to failure. This console generation seems more prone to it though than any other electronic I've ever owned.

NoughtSoClever @ Jul 8th 2009 10:20AM

"I would lose money on every PlayStation I make"

Holy shit! I didn't know this douche bag actually makes the machines himself!

I.AM.IRON.MAN @ Jul 8th 2009 10:21AM

Given that Activision only produce one game every two years thats worth spending money on i really couldn't care less if they pulled support for the PS3.

But in the real world, business is business and it is never going to happen...

NaeemTHM @ Jul 8th 2009 10:22AM

"I (would) lose money on every PlayStation I make -- how's that for logic."

Aren't they already losing money on every console produced? Besides, it's not the price of the console, it's how many you have in homes. You make money off the software not the hardware (unless you're Nintendo...then you print money either way).

"He's putting pressure on me and I'm putting pressure on him. That's the nature of business."

What pressure is Sony putting on Activision?

Activision: We're thinking about not making games for the PS3
Sony: OH YEAH! Well....you're just not going to get our Christmas letter this year.

Mr Khan @ Jul 8th 2009 11:07AM

Easy. Activision knows that if they can't profit off of 360-exclusive development, only off of PS360 development. No PS3 development means they can either A: Lose a lot of money on pretty much everything or B: Go Wii only. Neither of which are favorable options for someone like Activision.

Sony can call BS, and put more than adequate pressure on them with that move alone

Vcize @ Jul 8th 2009 1:14PM

I don't think anyone in their right minds thinks Activision wouldn't profit if they were 360-exclusive. They just wouldn't profit AS MUCH.

Their games sell millions upon millions of copies on the 360 alone, to say that they would be losing money on those millions upon millions of copies sold is crazy talk. How much do you think it costs to push out a new Guitar Hero game?

eat my face @ Jul 8th 2009 10:26AM

is it just me or does this guy look like lewis black

j.howlett @ Jul 8th 2009 10:42AM

i was thinking he looks like lewis black winding up to say 'fuck that guy'

Kdiggy @ Jul 8th 2009 10:28AM

Sir Howard Stringer is the man! He should have also pointed out how expensive Activion's plastic peripheral games are too, but still that's pretty good.

I'm boycotting Craptivision. Who's with me man? Who's with me?

NaeemTHM @ Jul 8th 2009 10:30AM

I'm definitely with you there, but the problem is the general sheep that buy video games could careless about what the some guy at Activision said.

All they care about is buy Guitar Hero 17, regardless of how shitty it is. And if it's not on the PS3, then that WILL be a major loss for Sony.

Personally I always found Rockband better anyway. Shame most people think IT is a Guitar Hero knockoff :-/

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