Console Price Cuts Are Coming, Activision Boss Says

Price cuts to platforms like Microsoft's Xbox 360 or Sony's PlayStation 3 are coming, at least according to Activision CEO Bobby Kotick, who talked about the current generation of platforms.

While the gaming industry wasn't severely affected by the recession, consumer spending power has decreased, so hardware manufacturers have employed price cuts in order to make their devices more attractive.

The latest one to do so is Nintendo, which, on May 15, will deploy a brand new bundle for its Wii home console, costing just $150.

According to Activision boss Bobby Kotick, Nintendo's rivals, Microsoft and Sony, aren't too far behind, and will also deploy price cuts to their Xbox 360 and PlayStation 3, respectively.

Speaking with the Financial Times after yesterday's investors call, Kotick revealed that, "We've more confidence in consumer spending, we feel like some of that has stabilized and there are price cuts on the [console] hardware in the works."

Seeing as how the E3 conference is held next month, the price cuts may be announced at the famous expo and go into effect later in June.

Kotick also chimed in on the growing probability that new consoles are coming, especially since Nintendo is set to unveil the Wii successor at E3.

"The industry is evolving - we had more than 50 percent of our revenues from digital this quarter - and one of the things you realise is that there's less of a need for new hardware when people become much more enthusiastic about the online components of the game. The platform used to be defined as just the box, but the platform today is really the box plus all the online services and capabilities."

While new hardware may be welcomed, Kotick joins the growing trend in the industry that backs up digital services and distribution, alongside Activision's main rival, Electronic Arts.