When making buying decisions, there is apparently one factor
that outweighs all others: price. While there are exceptions to the rule, the
concept of high price sensitivity currently applies to video game systems.
The Wii’s appeal may be much broader than the Xbox 360 or
PlayStation 3, but surely Nintendo’s lower price tag attracts many for those
looking to get into the current generation of games. Nevermind the Wii’s
inability to play DVD movies or output high-definition visuals – it’s the most
affordable current console on the market.
For Activision CEO Bobby Kotick, however, even Wii’s price
point of $249 is still a bit on the high side. Kotick said at a Reuters
event that he believes the key price point for mass adoption was $199 – a price
currently untouched by the current generation.
Kotick believes that the PlayStation 3 is a good machine,
but that the Wii is setting a new standard for the industry due to its price.
The Wii is priced $150 cheaper than the entry level 40GB PS3.
"The Wii at its price point is now setting a standard
and an expectation, and people say, well, the Wii is less complex technically.
I don't think that really matters as much to the consumer," said Kotick.
For a games publisher such as Activision, cheaper consoles
mean a potentially larger user base buying games. Not only would Kotick like
for cheaper consoles such as the Wii to become the norm, he believes that all
three consoles “need” to hit sub-$200 levels within the next two years.
"In the next 24 months they all will need to be at that
$199 price point, and you can imagine Nintendo will be down to the $129 price
point over the next few years," Kotick added.