It took a few weeks, but Sony CEO Sir Howard Stringer has responded to Activision CEO Bobby Kotick’s very public threat to stop making games for the PS3 if Sony (NYSE: SNE) didn’t slash the console’s price to boost sales: “He likes to make a lot of noise,” Stringer told Reuters. “He’s putting pressure on me and I’m putting pressure on him. That’s the nature of business.”
The least expensive PS3 still costs about $150 more than the Nintendo Wii (and $200 more than a stripped-down Xbox 360); analysts, game retailers and publishers like Activision (NSDQ: ATVI) argue that pricing is the main reason that PS3 sales have lagged behind the other consoles. But Stringer made it clear that a price cut wasn’t in Sony’s best interest, telling Reuters that the company would “lose money” on every PS3 it made if it kowtowed to the demands.
His remarks are consistent with previous statements various Sony execs have made regarding rumors of pending price cuts. They also shed light on why pricing for the new handheld PSP Go seems so high—the $249 price point may be right where Sony needs it to be profitable (or at least break even).
By Tameka Kee