Bobby Kotick has warned that Sony risks losing support of the mega publisher unless it decides to issue a price cut for the PlayStation 3.
“They have to cut the price, because if they don’t, the attach rates [the number of games each console owner buys] are likely to slow. If we are being realistic, we might have to stop supporting Sony,” Kotick told the Times Online.
When prompted as to when the firm may consider dropping support for Sony, the executive added: “When we look at 2010 and 2011, we might want to consider if we support the console — and the PSP [portable] too.”
“Games generate a better return on invested capital on the Xbox than on the PlayStation,” he said.
Kotick went on to say that his company forked out $500 million to Sony in royalties and other goods back in 2008, which he said “probably still worked out at 400 percent of the profit they made”.
Shortly after this statement their stock drop 1.18% costing them over a billion dollars. Hmm..
For the first quarter ’09 Ubisoft posted 15% of sales were for 360 and PS3. Namco reportedly made more on Sony’s systems combined than the Xbox for fiscal year ’08-’09.
Playstation 3 – 3.273 million, Playstation 2 – 4.630 million units sold,PSP – 4.202 million units sold ,Xbox 360 – 2.704 million units sold) .
Sales of MGS4 boosted Konami’s profits for 2 quarters on a system that was the highest priced and boosted the sales of the PS3 over the 360 for 2 months. So is the XBox brand really more profitable than the Playstation at this point? I don’t think so.
Written by: Sakinah
- Contributing Editor