GameStop, Activision CEOs wanted E3 price cuts

While this year's E3 was chock-full of major announcements, none of them had to do with price drops. Two major gaming CEOs are not happy about that.

GameStop, Activision CEOs wanted E3 price cuts

Not pictured: $250.

IGN is passing along word that two high-ranking CEOs of two of the largest companies in the gaming industry have registered disappointment in the lack of console price drops at E3 2009, during which the only new system announced was the $250 PSP Go. Activision CEO Bobby Kotick said:

"Of all the things that the hardware companies need to be doing right now, it's recognizing the difficulties of the economy and pricing their hardware appropriately."

Daniel DeMatteo, the CEO of gaming retailer GameStop, also voiced his concern about the lack of price change announcements at this year's show, stating:

"If the platform holders are going to make the numbers that they've forecasted for the year, those numbers will have to change."

For those of you keeping score, the last price drop for the DS was in April of 2005, the last PSP drop was in March of 2008, while the cheapest PS3 was introduced at $400 in November 2007 and and the lowest-priced Xbox 360 hit $200 in September of last year. The Wii has remained at $250 since the system came out in November of 2006.

You can read the original story and more from the two CEOs at Bloomberg.

THE VERDICT by Dave Rudden Dave Rudden's Avatar

I never thought I'd say this, but... I agree with what the CEOs of Activision and GameStop have to say. All three of the console manufacturers have sat on their current prices since the recession began, which means their systems are becoming less and less attractive in price.

Comments [23]

post a comment

Jedahpr

I agree totally, a price drop will benefit everyone in the end. More average consumers will get one console at least, and those that own one console could purchase another one. More hardware out there, that means more software. In the end, everyone wins.

BTW the PSP Go $250? That's very high for a handheld; I'll stay with my regular PSP & DS.

masterchief247

Sure, I'd buy a PS3 at $299. Lets see, $299 for a system, extra controller, and about 5-6 games I'd like to buy for the PS3. Think of how many people would be in the same boat.

jadosa

Ironic that a company that sells software for $60 a pop would call out the hardware as overpriced. Games are every bit as overpriced as hardware.

Gamestop has no room to talk either. They get used games at less than half of their value then sell them for a few dollars less than new.

I already own all 3 consoles, cheaper software is much more desirable to me, and anyone else who owns a console. They don't care about the consumer, they just see more hardware sales translating to higher profits for themselves.

jadosa

Not only is $60 too steep for software in this economic climate, but publishers aren't content to stop at $60. After a game is released they slowly leach even more off of their customers with DLC at usually $10 at a time.

Games like Halo even require that you buy it for many multiplayer modes. I haven't bought mythic yet, so team swat, ranked team slayer and many of my other favorite modes are out of the question. I've already sank over $80 in that game, yet they still want more.

My beef is with the publishers.

denveraic

jadosa wrote:

Ironic that a company that sells software for $60 a pop would call out the hardware as overpriced. Games are every bit as overpriced as hardware.

Gamestop has no room to talk either. They get used games at less than half of their value then sell them for a few dollars less than new.

I already own all 3 consoles, cheaper software is much more desirable to me, and anyone else who owns a console. They don't care about the consumer, they just see more hardware sales translating to higher profits for themselves.

Jadosa is 100 percent correct!!! Gamestop of all places complaining about prices???? That is just ridiculous. They take your game for 20 bucks, and sell it for 55. They make a killing out of screwing over people.

As far as price cuts go, it's pretty apparent the Wii is highly overpriced. It really doesn't cost anything to make them. They need to go to around $199. The 360 had a price cut what, 10 months ago? It's hard to call them out. They are the only system that has had a REAL price cut. The PS3 is very expensive to purchase. But they are expensive to manufacture. I get that. But the PS3 isn't moving a ton of units. If I were Sony I'd drop that price $50 dollars. If I'm Microsoft I would stay put until the holiday season.

denveraic

By the way, the recession has been going on quite a bit longer then last September.

takeanu

Supply and Demand. I think we all should stop buying games and system just for two weeks than a price cut will happen. PSP go 250? without a umd slot? I do not support download games. We cannot resell our games or lend to friends =p

maranda

jadosa wrote:

Ironic that a company that sells software for $60 a pop would call out the hardware as overpriced. Games are every bit as overpriced as hardware.

Gamestop has no room to talk either. They get used games at less than half of their value then sell them for a few dollars less than new.

I already own all 3 consoles, cheaper software is much more desirable to me, and anyone else who owns a console. They don't care about the consumer, they just see more hardware sales translating to higher profits for themselves.

AGREE!!!

Post a Comment