Activision's Kotick: Slowing Economy May Drive Console Price Cuts

In a new interview with Reuters, Bobby Kotick, CEO of developer and publisher Activision, has said that the U.S.’s slowing economy is pressuring video game console manufacturers to reduce prices on their consoles. "With the rising costs of fuel and food and housing, it is more difficult to go out and buy a $399 console, and I think it's going to put pressure on the console manufacturers to reduce their prices," said Kotick. Previously, Kotick expressed his belief that console manufacturers must hit a price point of $199 within the next two years to be successful in a wider marketplace, pointing to the Wii’s more affordable $250 pricing as an example to follow. Nintendo is unlikely to cut its prices on the Wii and the DS, as president Satoru Iwata announced just last week that the company intends to leave Wii and DS pricing at respectively $249 and $129. This followed the release of Nintendo’s 2007 financial report boasting a 48% rise in profit for the previous financial year. Kotick also expressed some concern for the future of the sports game industry in light of on-going acquisition talks between EA and Take-Two. "When you think about one company in control of the sports category, with no competition from anybody else, that could be a challenge," Kotick told Reuters.