Pixel Perfect – Activisions Real ProblemBy Anthony Swinnich on May 2nd, 2008
Activison CEO Bobby Kotick feels that gaming consoles are overpriced. "With the rising costs of fuel and food and housing, it is more difficult to go out and buy a $399 console," he said on Wednesday. Thats a little dramatic, Bobby, especially since this isnt the first time youve beat this drum. Is Activision not doing quite as well as you hoped this quarter? Or is it deeper than that; this isnt exactly a new issue. Maybe console pricing isnt the issue and Activision should rethink several details of their business. Activision seems to have hit a creative rut, probably because success seems to have a blinding effect on those who experience it. Guitar Hero and its sequels were smash hits, as were the Spider-Man and Tony Hawk games. An original gem like GUN, however, did little for the companys bottom line. So Activision continues pumping out games that sell – more Tony Hawk, more Guitar Hero, instead of creating original titles to compliment the same old stuff were used to. But its starting to backfire. Tony Hawk Proving Ground performed poorly compared to innovative newcomer SKATE. The series ongoing lack of originality is starting to reflect in sales. Whats to say Guitar Hero wont start losing ground to Rock Band at some point – Aerosmith isnt really a gameplay feature. Nobody wants stale products, and Activision is starting to see the effects of lazy development. Of course, the summer months are infamous for a lack of new games to play. Spider-Man games are practically guaranteed million sellers, despite their refusal to progress in the gameplay department, so why not release them then? If the company is intent on releasing the same old crap, it will probably perform better if theres less for it to compete against. Activision isnt the only publisher to turn a blind eye to the warmer months, but theyd be doing gamers and themselves a tremendous service if they turned the wasteland into something to look forward to – wed have something to play and they could make money. Its a win-win. Of course, Kotick does have a point. The consoles are pricey, Nintendos Wii included. It stands to reason that more consoles would be sold if the prices were lower, which would theoretically raise software sales as well... but software would sell more if it were cheaper, too. Perhaps $60 is a little high for the mainstream, especially if its the same tired type of game weve seen before (Mr. Hawk, please stand up). If a game plays like an expansion pack, it should be priced as such. Truth is, if Activision isnt making the amount of money they want to be making or moving the amount of software they think they should be, the ball is in their court. Kotick should stop blaming console manufacturers – original ideas and lower prices would do wonders for any publishers catalog, and right now Activision supports neither.
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