Activision considering Dropping Sony

Ok this one is pretty darn big; it looks like Activision might drop Sony if they do not drop prices on the PS3 and PSP. According to TimesOnline Activision CEO Bobby Kotick is not happy with the royalty fees, the hardware pricing and the failing sales of the PS3.

According to the article Activision paid $500 million to Sony in royalties and other goods last year alone. This is a large amount to be paying into a company that lost money (Sony Games Division).

He wants Sony to drop prices to something more reasonable or he might consider dropping the platform.

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"They have to cut the price, because if they don't, the attach rates [the number of games each console owner buys] are likely to slow. If we are being realistic, we might have to stop supporting Sony." Ask when and he says: "When we look at 2010 and 2011, we might want to consider if we support the console - and the PSP [portable] too." Sounds like Sir Howard Stringer, Sony's chief executive, is going to have to call Mr Kotick pretty fast.

Activision is pretty fortunate in that it has ridden the trend away from traditional "shoot 'em up" titles to family-oriented, interactive games such as Guitar Hero, which grossed more than $1 billion last year. "It was as big as Titanic [the film] with better margins".