It was recently reported that Bobby Kotick—head of one of the largest video game companies: Activision—is a little discouraged with the state of Sony and the Playstation 3. Kotick says, “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 attributes to the PS3’s slow sales to its hefty price. Right now, the Playstation 3, with an 80 GB hard drive sells for $399.99. For the same price, you can purchase the Xbox 360 “Elite Bundle” which includes a 120 GB hard drive, Halo 3, Fable 2, a headset, and an Ethernet and HDMI cable. That’s quite the difference. Mr. Kotick also states that “[t]hey 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.” And he is right. There isn’t much to entice a consumer to pay more for a console and get less. In fact, the only thing that the Playstation 3 has going for it is its inclusion of a Blu Ray player.