Sony CEO strikes back at Activision CEO. "He likes to make a lot of noise.&

SUN VALLEY, Idaho, July 7 - Sony Corp Chief Executive Howard Stringer brushed off concerns that the PlayStation 3 video game console is too expensive, and said the company is unlikely to sell parts of its business amid the recession.

Stringer, arriving at the Allen & Co conference in Sun Valley, Idaho, on Tuesday, described recent comments about PlayStation's price by Robert Kotick, the CEO of video game publisher Activision Blizzard Inc, as standard business tactics.

"He likes to make a lot of noise," Stringer said, when asked about the comments. "He's putting pressure on me and I'm putting pressure on him. That's the nature of business."

Last month, Kotick told the Times of London that Activision might cease developing games for the PlayStation if Sony did not cut the price of the console, which competes with Microsoft Corp's Xbox and Nintendo Co Ltd's Wii.

"When we look at 2010 and 2011, we might want to consider if we support the console," Kotick had said.

Asked about the logic of not cutting prices, Stringer said, "I (would) lose money on every PlayStation I make -- how's that for logic."

Stringer and Kotick are among the couple of hundred tech and media executives convening in Sun Valley this week for the annual confab.

Asked about consolidation in the entertainment industry, Stringer said Sony was not looking to get rid of any assets.

"We're learning to fuse content and hardware. This wouldn't be a time to get rid of either," he said.

Stringer said he will be participating in a panel about the recession at the conference.

"I see green shoots but it's a very light shade of green," he said.

While the executive said that the economic situation in most of Asia is looking good and that he sees a bottom in China, it was still too soon to call a bottom to the recession overall.

"It's very hard to tell whether this is just a minor trough on the way to recovery or a trough on the way to a trough," said Stringer.

Sir Howard Stringer himself

From gaf, source Reuters.

This is from the big Sony CEO himself. I was hoping for some more "direct" ass kicking, but this will do for now. :P

I'm not sure there's a pricecut in the works, but if there is, its a safe bet Sony will deny it up until the new, cheaper systems are on shelves.

Also, while I can't recall the last Activision game I've bought and there's little on their horizon I'm interested in (they're re-releasing Vigilante 8 on XBL, and I'll pick it up if it hits PSN) but as a matter of principle first parties throwing rocks at third parties is stupid. No, Stringer's comment wasn't an attack, but it was unduly dismissive.

Either way, the system is worth every penny, IMO.

What's up with Activision lately? Are they just trying to piss on people's fires? First self-perpetuated Brutal Legend drama. Now this. It makes me not even want to play Modern Warfare 2. I'm starting to really dislike them. Vivendi acquired a red-headed step-child, so it seems to me.

I'm not sure there's a pricecut in the works, but if there is, its a safe bet Sony will deny it up until the new, cheaper systems are on shelves.

Also, while I can't recall the last Activision game I've bought and there's little on their horizon I'm interested in (they're re-releasing Vigilante 8 on XBL, and I'll pick it up if it hits PSN) but as a matter of principle first parties throwing rocks at third parties is stupid. No, Stringer's comment wasn't an attack, but it was unduly dismissive.

[QUOTE="CarnageHeart"]

I'm not sure there's a pricecut in the works, but if there is, its a safe bet Sony will deny it up until the new, cheaper systems are on shelves.

Also, while I can't recall the last Activision game I've bought and there's little on their horizon I'm interested in (they're re-releasing Vigilante 8 on XBL, and I'll pick it up if it hits PSN) but as a matter of principle first parties throwing rocks at third parties is stupid. No, Stringer's comment wasn't an attack, but it was unduly dismissive.

smerlus

Oh well. I enjoyed the original game but didn't have the wisdom to hang onto it. Thanks for the heads-up.

Well Activision sure has been acting all kinds of annoying lately so I can't say that they don't deserve this. Still though they have a very impressive stable of games so perhaps Stringer could have been the wiser of the two and replied in a more polite manner. It'll be interesting to see if Kolick responds back in any way. Could make for some very interesting forum fodder.

Announcing a price cut more than a few days before it actually goes into effect is suicide because you effectively reduce your own sales leading up to the price cut (we have seen this in the past and the big wigs know it). I wouldn't be surprised if we do see some form of price cut/bundle for the Holiday season but don't expect it to be official any sooner than that.

Also I found it funny how Activision had the nerve to call out Sony, then proceed to price DJ Hero in the UK for £108 ($177), but oh well. Nothing like a pissing competition between two big companies (reminds me of the mud slinging that used to happen between the big three last generation).

atleast he knows an empty threat when he hears one. im sure sony would like nothing more than to find a way to make the ps3 cheaper. and, like everyone has said, theres no way they would announce a price cut in advance. its like saying "hey consumers! dont bother buying our product right now because it will be cheaper really soon!"LoG-Sacrament

I think we could be fair about it, and say that if indeed Activision's profit isn't so hot on a machine, then they do have the right to stop producing software for that machine.

There is still confusion about the money. The consumer's cost has nothing to do with Activision. It's the fees Sony is charging companies to use the machine's architecture - that's what Activision is talking about.

I think we could be fair about it, and say that if indeed Activision's profit isn't so hot on a machine, then they do have the right to stop producing software for that machine.

There is still confusion about the money. The consumer's cost has nothing to do with Activision. It's the fees Sony is charging companies to use the machine's architecture - that's what Activision is talking about.

topsemag55

http://news.cnet.com/8301-17938_105-10269204-1.html

What are you talking about? Activision's CEO explicitly called for a PS3 pricecut (I agree with him).

[QUOTE="LoG-Sacrament"]atleast he knows an empty threat when he hears one. im sure sony would like nothing more than to find a way to make the ps3 cheaper. and, like everyone has said, theres no way they would announce a price cut in advance. its like saying "hey consumers! dont bother buying our product right now because it will be cheaper really soon!"aspro73

I'm pretty sure we can expect some kind of price cut by the holidays or possibly a new bundle with Uncharted 2 or something similar.

I didn't expect a big company CEO like Stringer would say such immature comments.

I didn't expect a big company CEO like Stringer would say such immature comments.

Zensword

How is it immature to be pointing out the obvious? Sony has to look out for themselves too.

[QUOTE="LoG-Sacrament"]atleast he knows an empty threat when he hears one. im sure sony would like nothing more than to find a way to make the ps3 cheaper. and, like everyone has said, theres no way they would announce a price cut in advance. its like saying "hey consumers! dont bother buying our product right now because it will be cheaper really soon!"aspro73

Works both ways too. If its supposed to be an empty threat, why even bother expressing it in the first place? Most people should know by now that making threats accomplishes nothing other to cause the other to be more stubborn.

good job at kicking kotick's ass, he deserved it for talking through his arse. i don't really help though when their relationship is already shaky enough. as it is, sony's relationship with 3rd party companies is a bit lacking compared to microsoft's.

good job at kicking kotick's ass, he deserved it for talking through his arse. i don't really help though when their relationship is already shaky enough. as it is, sony's relationship with 3rd party companies is a bit lacking compared to microsoft's.

Syaz1

MGS: Peace Walker, Final Fantasy XIV online and Rockstar's The Agent show that they're at least working on it. :)

They also somehow convinced all these third party publishers to support the PSP again, which has to have the worst tie-in ratio for any platform out there. How they did it is beyond me.

[QUOTE="Syaz1"]

good job at kicking kotick's ass, he deserved it for talking through his arse. i don't really help though when their relationship is already shaky enough. as it is, sony's relationship with 3rd party companies is a bit lacking compared to microsoft's.

S0lidSnake

MGS: Peace Walker, Final Fantasy XIV online and Rockstar's The Agent show that they're at least working on it. :)

They also somehow convinced all these third party publishers to support the PSP again, which has to have the worst tie-in ratio for any platform out there. How they did it is beyond me.

u made a point there, though i didn't say their relationship with 3rd party developers r bad, just not as good as microsoft. microsoft has epic games, valve n square enix (i think) supporting their platform better than the ps3. then there's slightly better multiplatforms on the xbox 360 too.

[QUOTE="Zensword"]I didn't expect a big company CEO like Stringer would say such immature comments.

BladesOfAthena

How is it immature to be pointing out the obvious? Sony has to look out for themselves too.

It's obvious that Kotick "likes to make a lot of noise" ? Stringer could have responded to Ktick's demands without blurting out such a personal attack.

[QUOTE="BladesOfAthena"]

[QUOTE="Zensword"]I didn't expect a big company CEO like Stringer would say such immature comments.

Zensword

How is it immature to be pointing out the obvious? Sony has to look out for themselves too.

It's obvious that Kotick "likes to make a lot of noise" ? Stringer could have responded to Ktick's demands without blurting out such a personal attack.

That's not so much of a personal attack as it is of a dismissive tone. If someone makes a threat or any sort of attack that is meant to instill fear, your natural response is to act defensively. I'm sure that any other CEO would've reacted the same way.

It was absolutely unnecessary on Kotick's part to be making idle threats, just as its absolutely unnecessary for whiny customers to be making silly 911 calls just because their burger wasn't handled properly.:P

He will eventually lower the price, but only on HIS terms, not Activision's.

Sony needs to get out of last place. This is whycompanies like Activision try to walk all over them.

"He likes to make a lot of noise"

Ohhhh, Burn!

[QUOTE="Zensword"]

[QUOTE="BladesOfAthena"]

How is it immature to be pointing out the obvious? Sony has to look out for themselves too.

BladesOfAthena

It's obvious that Kotick "likes to make a lot of noise" ? Stringer could have responded to Ktick's demands without blurting out such a personal attack.

That's not so much of a personal attack as it is of a dismissive tone. If someone makes a threat or any sort of attack that is meant to instill fear, your natural response is to act defensively. I'm sure that any other CEO would've reacted the same way.

It was absolutely unnecessary on Kotick's part to be making idle threats, just as its absolutely unnecessary for whiny customers to be making silly 911 calls just because their burger wasn't handled properly.:P

He will eventually lower the price, but only on HIS terms, not Activision's.

Stringer didn't act defensively, he acted offensively since he intentionally attack Kotick, not his threat.If I were Stranger, I'd have responded to Kotick's threat/demand without saying anything hurt Kotick's feelings.

I don't think ANY CEO's would react as Stranger did. And saying something like "I'm sure ...anyone would say/do the same ..." in this case is just pure assumption.

Yes, Stringer will lower the price on his terms, not Activision's but any third party company has the right to put pressure on him.

Sony is operating with a level of arrogance that can only make things worse. THEY decided to push Blueray onto a market that wasn't ready for it while simultaneously making their system insanely expensive and that choice, along with their stubborn refusal to take a spoonful of bitter medicine and weather a price cut, is why they are trailing dead last. The fact that a company as large as Activision is publicly talking about abandoning the platform should be a source of concern for Sony, not fodder for a pissing contest.

Personally, I love my PS3 and I don't regret the 600 dollars I dropped on the system but I am not the typical consumer. We are in the middle of a very serious recession and people obviously are not buying their pricey console at the rate necessary to sustain their business so either they can swallow their pride and do the right thing or continue to watch a very good system die a slow, unfortunate death at retail.

Stringer didn't act defensively, he acted offensively since he intentionally attack Kotick, not his threat.If I were Stranger, I'd have responded to Kotick's threat/demand without saying anything hurt Kotick's feelings.

I don't think ANY CEO's would react as Stranger did. And saying something like "I'm sure ...anyone would say/do the same ..." in this case is just pure assumption.

Yes, Stringer will lower the price on his terms, not Activision's but any third party company has the right to put pressure on him.

Zensword

How is Stringer attacking Kotick when Kotick was the one who initially made the threat? Threats are a form of coercion and are gauranteed to elicit a negative response, regardless of the individual. In some cases, they may even be illegal. This is not an assumption, but a fact. Stringer only said what he said because what Kotick said came off as both inflammatory and unnecessary. As a CEO, Kotick could've been more diplomatic in his approach without having to resort to empty threats.

It can also go the other way around too. Just as its a third party's right to place pressure on him, its also Stringer's right not to buckle in to their demands because its HIS company. If Kotick doesn't like it, then he should just leave without having to say a word.

Sony is operating with a level of arrogance that can only make things worse. THEY decided to push Blueray onto a market that wasn't ready for it while simultaneously making their system insanely expensive and that choice, along with their stubborn refusal to take a spoonful of bitter medicine and weather a price cut, is why they are trailing dead last. The fact that a company as large as Activision is publicly talking about abandoning the platform should be a source of concern for Sony, not fodder for a pissing contest.

Personally, I love my PS3 and I don't regret the 600 dollars I dropped on the system but I am not the typical consumer. We are in the middle of a very serious recession and people obviously are not buying their pricey console at the rate necessary to sustain their business so either they can swallow their pride and do the right thing or continue to watch a very good system die a slow, unfortunate death at retail.

Grammaton-Cleric

How much do blu-ray drives run? The PS3 comes equipped with two other pieces of equipment (hard drive, wireless modem) that set one back $100 apiece on the X360 so I suspect Sony's decision to follow MS's last gen strategy of shipping every system with everything (bar HD cables:roll: ) as opposed to going a al carte is a big reason for the high minimum price of the PS3.

Also, I doubt a pricecut would change Sony's last place position (MS can always easily answer with a pricecut) but I believe it would be a smart move since it would increase hardware sales and thus allow games on the PS3 to put up higher numbers.

[QUOTE="Grammaton-Cleric"]

Sony is operating with a level of arrogance that can only make things worse. THEY decided to push Blueray onto a market that wasn't ready for it while simultaneously making their system insanely expensive and that choice, along with their stubborn refusal to take a spoonful of bitter medicine and weather a price cut, is why they are trailing dead last. The fact that a company as large as Activision is publicly talking about abandoning the platform should be a source of concern for Sony, not fodder for a pissing contest.

Personally, I love my PS3 and I don't regret the 600 dollars I dropped on the system but I am not the typical consumer. We are in the middle of a very serious recession and people obviously are not buying their pricey console at the rate necessary to sustain their business so either they can swallow their pride and do the right thing or continue to watch a very good system die a slow, unfortunate death at retail.

CarnageHeart

How much do blu-ray drives run? The PS3 comes equipped with two other pieces of equipment (hard drive, wireless modem) that set one back $100 apiece on the X360 so I suspect Sony's decision to follow MS's last gen strategy of shipping every system with everything (bar HD cables:roll: ) as opposed to going a al carte is a big reason for the high minimum price of the PS3.

Also, I doubt a pricecut would change Sony's last place position (MS can always easily answer with a pricecut) but I believe it would be a smart move since it would increase hardware sales and thus allow games on the PS3 to put up higher numbers.

I would assume the price of the BR drive has gone down significantly since launch but you do bring up a valid point about the wireless modem and HD being included, something I honestly forgot. I also wonder how much they saved stripping out the emotion chip for PS2 backwards compatability? Was the omission worth the money they saved?

As to market position, I agree that there isn't much to be done at this point but Sony has to do something to generate better sales. The shame is that even certain hardcore gamers I know haven't nabbed a console yet because of the price, though I think I've convinced a good friend of mine to nab that new Best Buy bundle that comes with Killzone 2 and MGS4. For the time being, that's as good as it is going to get I imagine.

[QUOTE="CarnageHeart"]

[QUOTE="Grammaton-Cleric"]

Sony is operating with a level of arrogance that can only make things worse. THEY decided to push Blueray onto a market that wasn't ready for it while simultaneously making their system insanely expensive and that choice, along with their stubborn refusal to take a spoonful of bitter medicine and weather a price cut, is why they are trailing dead last. The fact that a company as large as Activision is publicly talking about abandoning the platform should be a source of concern for Sony, not fodder for a pissing contest.

Personally, I love my PS3 and I don't regret the 600 dollars I dropped on the system but I am not the typical consumer. We are in the middle of a very serious recession and people obviously are not buying their pricey console at the rate necessary to sustain their business so either they can swallow their pride and do the right thing or continue to watch a very good system die a slow, unfortunate death at retail.

Grammaton-Cleric

How much do blu-ray drives run? The PS3 comes equipped with two other pieces of equipment (hard drive, wireless modem) that set one back $100 apiece on the X360 so I suspect Sony's decision to follow MS's last gen strategy of shipping every system with everything (bar HD cables:roll: ) as opposed to going a al carte is a big reason for the high minimum price of the PS3.

Also, I doubt a pricecut would change Sony's last place position (MS can always easily answer with a pricecut) but I believe it would be a smart move since it would increase hardware sales and thus allow games on the PS3 to put up higher numbers.

I would assume the price of the BR drive has gone down significantly since launch but you do bring up a valid point about the wireless modem and HD being included, something I honestly forgot. I also wonder how much they saved stripping out the emotion chip for PS2 backwards compatability? Was the omission worth the money they saved?

As to market position, I agree that there isn't much to be done at this point but Sony has to do something to generate better sales. The shame is that even certain hardcore gamers I know haven't nabbed a console yet because of the price, though I think I've convinced a good friend of mine to nab that new Best Buy bundle that comes with Killzone 2 and MGS4. For the time being, that's as good as it is going to get I imagine.