Bobby Kotich, the CEO of game publisher Activision, says game consoles need more attractive pricing to appeal to the masses. Kotick says even the Nintendo Wii's price is still a bit on the high side, he believes the key price point for mass adoption is $199.
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.