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Activision CEO envisions $199 360 and PS3

Activision CEO Bobby Kotick has a dream, a dream of $199 Xbox 360s and PS3s. Actually, more to the point, Kotick has stated that both the Xbox 360 and PS3 must fall to $199 within the next two years in order to gain acceptance from the mass market. Driving this opinion is none other than Nintendo's Wii, which is priced at $250 and is, according to Kotick, "setting a standard and an expectation." Kotick acknowledges that the Wii isn't as complex as the 360 or PS3, but notes that that such things don't matter to the average consumer. He concludes that the magical mass market price point is $199 and that console manufacturers will need to reach that price within the next two years, adding that the Wii will likely hit $129 within a few years.

We have to agree with Joystiq that a $199 PS3 seems pretty damned far-fetched, but the 360 might be able to accomplish such a feat. Within two years, we're betting on $229 with a drop to $249 preceding that. Come back in two years to see if we're right, assuming we're not all destroyed by the impending Robocalypse by then.

[Via Joystiq]

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Reader Comments (Page 1 of 1)

Phocas1

11-28-2007 @ 11:25AM

Phocas said...

With all the research and development in creating a cooler, smaller, and cheaper GPU/CPU combo I see no reason why the 360 can't hit $229 or better. While I disagree that the Wii is Gods gift to gaming, making the price lower, which opens to door to more gamers can only be good for the 360 and our community.

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Mark2

11-28-2007 @ 11:41AM

Mark said...

I think the Wii has proven that the "mass market" everyone is trying to get to buy a system doesn't buy games. So adding more people who own a system but won't buy any more games doesn't really help Activision or any other publisher. I believer that getting more of these consumers to buy a 360 will just lower the software to hardware ratio so a $200 price point doesn't help much, but it's great for those of us that need to replace their existing system if it dies.

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jroc3

11-28-2007 @ 11:53AM

jroc said...

Is he joking? With the way the economy is going and since we are heading into reccession the prices are going nowhere but up.

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morphs4

11-28-2007 @ 11:56AM

morphs said...

I knew that I should have waited til 2009 to get a Xbox 360.

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JAKEJAX5

11-28-2007 @ 11:56AM

JAKEJAX said...

I wonder what he thinks about the ipod. Obviously that product has reached the masses and all it does is play music, video, displays pictures. Which the 360 and the PS3 does and more. I paid $399 for my 360 and it is worth every penny. I get to play games, watch movies, listen to music,and stream TV from my other computer. But I guess value is in the eye of the beholder.

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refinedsugar6

11-28-2007 @ 12:22PM

refinedsugar said...

Give him points for stating the obvious. The "mass market" is full of naive, cheapo idiots.

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Avaren7

11-28-2007 @ 12:29PM

Avaren said...

It's one thing when the uninformed, nongamer public and media consider the xbox and ps3 "too expensive"; But someone at a game company? This is inexcusable naivety.

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c4v3man8

11-28-2007 @ 12:51PM

c4v3man said...

Honestly, I think this comment applies more to EA that anyone else, since EA seems to sell more mass-market oriented games. Activision seems to be more catered to the FPS market, which has no problem spending $300+ on a console/graphics card.

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iLuvUrOpinion9

11-28-2007 @ 1:06PM

iLuvUrOpinion said...

I really don't think the masses will care much about the xbox 360 or ps3 in two years. By then, we will all be hearing about the next big thing in gaming. By 2009 we will be hearing what Microsoft, Nintendo and Sony will have in store for their next gaming cosole. Do only thing I hope is that I will be able to reuse all my gaming accessories and my 120 GB hard drive with the next console.

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Scott10

11-28-2007 @ 1:23PM

Scott said...

So what else will Sony have to take out of the PS3 to reach $199?

I kid, I kid! Or do I?

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spyd4r11

11-28-2007 @ 1:46PM

spyd4r said...

What a dumbass, comparing the 360 and the PS3 to the Wii.

Yeah, 2 next-gen consoles should be following an exampleset by a last gen console with fancy controllers..

*golf clap*

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Leo12

11-28-2007 @ 6:17PM

Leo said...

Yeah! Maybe if they take out, you know, the gameplaying capabilities. There is, after all, one without a hard-drive, so maybe, DVD fans! Maybe!

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vinnie gambini13

11-28-2007 @ 10:01PM

vinnie gambini said...

I bought a 360 premium system last year at Microcenter for $199.00 since they gave me $200 in rebates.

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molecule14

11-28-2007 @ 10:42PM

molecule said...

So the CEO of a game company wants consoles to be cheaper so he can sell more games. Shocking.

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Recoil2515

11-29-2007 @ 12:07AM

Recoil25 said...

Funny how he states that the price of the 360 and the PS3 should be $200 to gain the appeal of the mass market when he is selling a game (GH III) for $109 for the PS3 and 360... half the price of what he thinks the consoles should sell for. Does he really think that the development cost and manufacturing cost of a 360/PS3 is really only twice what it is for GH III? As much as I like GH, I would much rather pay money for a system that can play a multiple great games than a good game with a fake guitar.

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ProjectModChamp16

11-29-2007 @ 7:36AM

ProjectModChamp said...

Hmmm, I wonder if they'll keep saying the ps3, and 360 are next gen in 2009 when there probably going to announce another "next gen" console. Honestly The 360 has been out for about 2 years, and is still called next gen. When the ps2 came out, I really don't remember anything like that:/

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James17

11-29-2007 @ 5:15PM

James said...

I figure within 2 years they'll have gotten the manufacturing process down below 65nm, and be using it on both CPU and GPU. Then, they can shrink the heat sinks on both, shrink the power supply, and make a 360 (or PS3) "slim", like they did with the PS2. They'll have long recouped their R&D costs on the original console, and since the hardware functionality will remain the same, they won't spend much on the redesign, while their costs per unit will plummet. I don't think a Christmas-2009 $200 360 *or* PS3 are out of the question.

Maybe they'll take out something less popular, like the modular hard drive. Even now, wholesale on smaller SATA 2.5" drive runs in the very low double-digits; in 2 years, they'll be able to scrape the bottom of the barrel and pay somebody 20 bucks a pop to take "tiny" ~40-60 gig drives off their hands, which is more than enough for the Wii crowd. The dashboard will benefit from another 2 years of development -- maybe it will support Netflix "watch it now" or whatever comes after YouTube or something similarly popular.

Everybody's saying that the "next next gen" will come in 2010-2012, but I don't see why adaptation is going to be any faster for that generation than it has been for the current one -- look at how the PS2 is still selling. It doesn't make sense for them to be selling the current 360 design -- big, power-hungry, a teensy bit over-engineered (though not nearly as much so as the PS3!) -- two years from now. There's *got* to be an Xbox 360.2 on the way. Even Microsoft might not know it yet, but mark my words, we'll see it.

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heishiro18

11-30-2007 @ 6:51PM

heishiro said...

@Jroc I believe you are totally wrong... not about a recession because I am DEFINATELY sure we are heading into the worst recession in world history. But that these types of items are deflationary... when you have to choose between staying warm and eating and games what do you think most sane people would choose... within 2 years you wont be able to give these things away...

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