Activision threatens to stop supporting sony

[Chasym]

taken from
http://kotaku.com/5296566/activision-threatens-to-stop-supporting-sony-consoles

Speaking with The Times, Kotick said "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".

Subtle. But wait. It gets subtler.

"They have to cut the price, because if they don't, the attach rates are likely to slow", he continues. "If we are being realistic, we might have to stop supporting Sony...When we look at 2010 and 2011, we might want to consider if we support the console - and the PSP [portable] too".

In that absolute worst-case scenario, that would mean no Call of Duty for Sony consoles. No Guitar Hero for Sony consoles. No Tony Hawk, either. It probably won't ever come to that, of course, but Kotick's words are still worth noting. After all, when was the last time you ever saw a third-party publisher so openly threaten a major platform holder?

Now thats some fightin words.

 

[Tagrineth]

Been waiting for something like this..

 

[Gerry]

While I don't like Pachter, I have to agree with him, this is a bluff.

Edit: Besides, Sony will more than likely announced a price drop at TGS anyway in time for Holiday sales. Yeah, so the sales for Activision games aren't that big when it's PS3 vs 360, but they still have some kind of fanbase on the PS3. Activision may not make insane amounts of money from PS3 than the 360, especially with CoD4's 11 million players on 360, it doesn't mean the PS3 should be left out in the cold just because they didn't turn an insane profit with it like the 360 had. Activision still made a huge profit from the PS3, so why deny the gamers something they like because it doesn't get 1 billion sales in an hour (lol exaggeration but you get my point).

 

[Strid]

I think he'd do it, he's the guy who tried to tie up Ghostbusters and Brutal Legend (illogical things to do) mind you, so when something logical hits you gotta either call his bluff or decide whether or not you care about Activision's support. I think the guy left him a bit of room for fate to play out though. He says between 2010 and 2011, if there is a price change at all durin' that time he could just play it off and we all know there will be at least one price change in there somewhere. So knowin' that I don't think he's got big stones, just a big mouth.

 

[Gerry]

I think he'd do it, he's the guy who tried to tie up Ghostbusters and Brutal Legend (illogical things to do) mind you, so when something logical hits you gotta either call his bluff or decide whether or not you care about Activision's support. I think the guy left him a bit of room for fate to play out though. He says between 2010 and 2011, if there is a price change at all durin' that time he could just play it off and we all know their will be at least one price change in there somewhere. So knowin' that I don't think he's got big stones, just a big mouth.

As I said in my edit, TGS. That's THE best time to announce a price drop of any kind as it is very close to the Holiday season, so it'll garner more sales.

 

[Crumpet]

He does have a bit of a point. PS3 is a very expensive console and a lot of people do favor the 360 or Wii.

 

[Strid]

As I said in my edit, TGS. That's THE best time to announce a price drop of any kind as it is very close to the Holiday season, so it'll garner more sales.

That's not the only thing their goin' to have to drop the prices on though. This "decision" doesn't hinge solely on that. I used that example and some way the Activision guy could blow off his words. If the PS3 does move units that doesn't mean Activision is goin' to see the necessary changes to continue to do business with Sony. This whole ordeal came up after payin' some sort of royalties fee to Sony this week so it's deeper than that.

 

[TheOsyris]

From what i have read with several developers comments, Sony charges a higher amount per download to developers each time their DLC is downloaded.

Its irrelevant to us maybe... But times those cents by a couple million on games like CoD4 and CoD:WAW...

Then there is the difficulty of development on the PS3. I am aware Sony released an easier package for devs. I am also aware anytime a dev says it tough to develop for the PS3 people want to call that dev lazy. Money is tight now a days, period.

I do think the guy is bluffing in a way.. As Strid pointed out the timeline is huge. I think its more of an attempt to motivate Sony to lower there costs to devs faster. Adjust to the recession if you will, we all are.

 

[Skaw]

Sounds to me that Activision needs to just get kicked out of the business Midway style. They've done nothing but bitch and moan lately. I'm sure plenty of publishers wouldn't mind taking Call of Duty and Activisions other big name releases that they don't develop off their hands for them

 

[Strid]

Sounds to me that Activision needs to just get kicked out of the business Midway style. They've done nothing but bitch and moan lately. I'm sure plenty of publishers wouldn't mind taking Call of Duty and Activisions other big name releases that they don't develop off their hands for them

When you consider it's only an issue with Sony and wantin' to cut back, it's a very practicle argument. Why would I help you over/with someone else when they're cheaper and net a return to make the juice worth the squeeze? Maybe on the playground I say okay we'll ride it out but in the business world, especially now, you need to earn your keep.

 

[TheOsyris]

When you consider it's only an issue with Sony and wantin' to cut back, it's a very practicle argument. Why would I help you over/with someone else when they're cheaper and net a return to make the juice worth the squeeze? Maybe on the playground I say okay we'll ride it out but in the business world, especially now, you need to earn your keep.

I do kinda agree. I mean i think this is more of a warning type of deal from Activision. But times are seriously tough now..

In a way i see plenty of sense from an economic standpoint stopping Sony support from activision...

Yet Sony seems to have changed their focus through the last year. Its more about games now more then ever with PS3 and not just pushing a blu-ray player into peoples homes. So i could see this as a good time to support Sony in some sense.. No?

Really it just seems like a cry for help and begging to lower costs during this time.

 

[Strid]

Yet Sony seems to have changed their focus through the last year. Its more about games now more then ever with PS3 and not just pushing a blu-ray player into peoples homes. So i could see this as a good time to support Sony in some sense.. No?

Not really a good time to support Sony rather than a good time for Sony to start bein' more "user friendly"/supportin' third party companies. It's not like Sony can offer a different, or/if even better, cookie and tea than Microsoft or Nintendo can, especially now. If Sony had somethin' to offer maybe that would make them feel they should support them.

Really it just seems like a cry for help and begging to lower costs during this time.

You can't really say Activision is cryin' for help (look at their enormous profits and titles). They most definitely, of all publishers, are not hurtin' through these times. However, the rich only get richer by makin' good, smart decisions even when they are not hurtin'. I hate to defend this prick, but he's not even 1% in the wrong.

 

[Chasym]

thats why i love qcdn. Anywhere else i go to see how people are responding to this, Its a huge fuckin fanboy war. "lolz goodbye sony! hello 360!!!" "Ps3 is still hurtin!! long live 360'z!!!"
No one sees the big picture of why, Its not a matter of this console is superior to this console, they are not talking about ps3 vs 360. They are talking about smart business decisions, Hell they even mentioned that dropping support means for PSP as well. I hope this lights a fire under sonys ass because it would be a shame if ps3 lost their support, Ps3 users with no modern warfare titles would be a huge hit in the stomach.

Honestly for me anymore, i could care less about the music games. There are too many, and if you play one, you played em all anymore.

 

[TheOsyris]

Not really a good time to support Sony rather than a good time for Sony to start bein' more "user friendly"/supportin' third party companies. It's not like Sony can offer a different, or/if even better, cookie and tea than Microsoft or Nintendo can, especially now. If Sony had somethin' to offer maybe that would make them feel they should support them.



You can't really say Activision is cryin' for help (look at their enormous profits and titles). They most definitely, of all publishers, are not hurtin' through these times. However, the rich only get richer by makin' good, smart decisions even when they are not hurtin'. I hate to defend this prick, but he's not even 1% in the wrong.

Ok after a re-read i agree with the first comment. I mentioned Sony focusing on quality games now more then they have since release.. It is mainly 1st party though, i should have thought that out myself.

So you are right third party support is what matters here. In that area Sony is still behind even if you only base it on development difficulty from 3rd party.

It would cost more to make the game equal to the 360 version due to development difficulties, as is the case with the recent release Ghostbusters. There is a vast visual difference between the versions. Thats not due to weaker system specs or lazy developers. That due to a set budget on each consoles version of the game. The budget for the PS3 version hits its peak far earlier in development then the easier developing versions, not to mention it sells less..

As for the second comment.. I can say Activision is hurting during these times.

CoD:WAW and GH games can sell all they want in the past.. Just poping out a reshelled version of your last game is not going to do it while we are in this economic crysis. (Which CoD and GH games are)

People are paying a little more attention to what they buy right now. It seems to me Activision is worried about the future and are crying for help in the development area with Sony.

Just look at the MMO bullshit they are thinking of pulling with a CoD game down the road.. It just screams please give us money to save our dying name.

 

[Strid]

I think you're forgettin' one huge source of income for Activision, World of Warcraft and other Blizzard products. Maybe that helps out. If they were hurtin' the last thing they'd do is roll out the "MMO plan". Not only is that a costly endeavor but it's also not guaranteed to be a success and as a matter of fact, and they know this, will be a heated matter for sure. Much like releasin' the kind of peripherals they do with Rock Band, etc. Their about to roll out that DJ game and Tony Hawk game both with ridiculously pricey hardware and again, both neither a sure success. Too much risk to take if they really are hurtin'. Look at what Activision collects from currently and is set to in the future. Blizzard products (Diablo III, SC 2, new MMO all inc), MW series, Tony Hawk, their hugely popular music games/controllers, and that's not all when you think of all the tiny things they do like the newly released Prototype and things yet to form a gathering and things of the past. If anyone in the game business is sick of money, if that's possible, it would definitely be Activision. I just can't see how they'd be hurting, but I'm open ears as well. I think they made the announcement from the mindset of "because we can" rather than "Sony is dryin' us out". It really translates to me that they don't think they need Sony right now. And how do businesses that are successful stay successful? They cut the fat. No use in keepin' somethin'/someone around that is slowin' your profit down even if it's by just a hair.

It's probably also suffice to mention that just because these days are deemed, economically, "hard times" doesn't make it true for everyone. There are a few instances where these are truly good times and a lot of instances where things are life as normal. The people and businesses who are falling to this ordeal are only the people who put themselves in that position to begin with (I don't mean that negatively). I should also mention, you can Google the specifics, but I found this out in an article in Joystiq, that the one thing least effected by the economical downturn, in every aspect, is video games.

 

[Guesswho]

I hope they don't drop Sony. That would seriously suck. I have all three systems but the Playstation 3 is the main one I buy games for.

 

[TheOsyris]

I think you're forgettin' one huge source of income for Activision, World of Warcraft and other Blizzard products. Maybe that helps out. If they were hurtin' the last thing they'd do is roll out the "MMO plan". Not only is that a costly endeavor but it's also not guaranteed to be a success and as a matter of fact, and they know this, will be a heated matter for sure. Much like releasin' the kind of peripherals they do with Rock Band, etc. Their about to roll out that DJ game and Tony Hawk game both with ridiculously pricey hardware and again, both neither a sure success. Too much risk to take if they really are hurtin'. Look at what Activision collects from currently and is set to in the future. Blizzard products (Diablo III, SC 2, new MMO all inc), MW series, Tony Hawk, their hugely popular music games/controllers, and that's not all when you think of all the tiny things they do like the newly released Prototype and things yet to form a gathering and things of the past. If anyone in the game business is sick of money, if that's possible, it would definitely be Activision. I just can't see how they'd be hurting, but I'm open ears as well. I think they made the announcement from the mindset of "because we can" rather than "Sony is dryin' us out". It really translates to me that they don't think they need Sony right now. And how do businesses that are successful stay successful? They cut the fat. No use in keepin' somethin'/someone around that is slowin' your profit down even if it's by just a hair.

It's probably also suffice to mention that just because these days are deemed, economically, "hard times" doesn't make it true for everyone. There are a few instances where these are truly good times and a lot of instances where things are life as normal. The people and businesses who are falling to this ordeal are only the people who put themselves in that position to begin with (I don't mean that negatively). I should also mention, you can Google the specifics, but I found this out in an article in Joystiq, that the one thing least effected by the economical downturn, in every aspect, is video games.

I mean you have points.. But dont fall into that videogames are not effected by the recession stuff. Those reports were all within a month of being hit by it lol.. I read the same stuff. Game sales are at a monster low now, partly due to the lame games available for the last few months.. But for sure driven by recession.

Look at how it destroyed Killzone 2. The game has yet to sell a Million units in the US. There is no set date for the economy to turn around.. Any and every company is taking the proper procedures to set themselves. There is no way Activision is safe with there soft profit when you have MS with a multi billion dollar profit a year re-organizing and adjusting to the recession.

http://kotaku.com/5261580/hows-killzone-2-selling-these-days

 

[Firestreak]

I think we all assume there's going to be a price drop at some point this year or at the absolute latest, early next year. It's true Sony has focused on 1st party a lot this generation, as the 360 has pretty much made most of their 3rd party multiplatform. However I don't see Activision dropping support regardless, it seems more of a threat, but not empty exactly. I can see them killing off some releasing for PS3, but I call BULLSHIT on Guitar Hero and Call of Duty. It's possible if Sony decided to keep the PS3 price point at $400 well after Xbox 360 is $200 that Activision is going to shrug its shoulders and drop them for the less important games, but the big stuff is still going to be profitable.

This threat isn't a bad thing really. We all probably know people who want a PS3 but not at $400.

 

[Eleibfrid]

It's a bluff, that simple. They already make plenty of money, but they want more. It's illogical because yeah, if you cut off Ps3 production costs and support, you'll be saving a good chunk of money. But you'll be losing that much more money when you aren't getting $60 a game for people who already own PS3's.

Take CoD4/WaW for example: sure it sold about 2-3mil more copies (overall on both games) on 360 than Ps3, but the combined sales on the Ps3 versions was roughly 8mil. On just 2 games, 8million in sales is kind of hard to not recognize.

Either way, if they do decide to pull -- nothing of value would be lost. If EA, Sony, Naughty Dog, Konami, Capcom, or Square decide to pull support, then I might be concerned.

 

[Gerry]

It's a bluff, that simple. They already make plenty of money, but they want more. It's illogical because yeah, if you cut off Ps3 production costs and support, you'll be saving a good chunk of money. But you'll be losing that much more money when you aren't getting $60 a game for people who already own PS3's.

Take CoD4/WaW for example: sure it sold about 2-3mil more copies (overall on both games) on 360 than Ps3, but the combined sales on the Ps3 versions was roughly 8mil. On just 2 games, 8million in sales is kind of hard to not recognize.

Either way, if they do decide to pull -- nothing of value would be lost. If EA, Sony, Naughty Dog, Konami, Capcom, or Square decide to pull support, then I might be concerned.

Sony won't pull support unless they know they are fucked, Naughty Dog is owned by Sony, EA, Konami and Capcom have very good relations with Sony and Square, I think Sony has got a guy on their board of directors. Even without Activision, Sony can still rely on those other companies easily. It'll be Activision who loses.