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Activision CEO Would Like To Raise Game Prices "Even Further"

Tom Ivan's picture

By Tom Ivan

August 6, 2009

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Activision is confident in its current product pricing strategy, and CEO Bobby Kotick would like to raise game prices “even further.”

The company recently confirmed that Call Of Duty: Modern Warfare 2 will carry a RRP of £54.99 when it releases this November, while the COD: Modern Warfare 2 Prestige Pack will retail for £119.99. Other upcoming releases like Tony Hawk: Ride and DJ Hero, which will ship with unique controller peripherals, are likely to carry price tags that push £100.

During an earnings call yesterday, Activision executives were asked about retailers’ reactions to the company’s pricing strategy.

“.. On the pricing, we’ve had for all of our launch titles in the back half of this year, some of which contain peripherals, as you point out, very strong retailer acceptance and support for all parts of our plan, including our merchandising plans, our marketing programs, and our price points,” said Activision Publishing boss Michael Griffith.

Company CEO Bobby Kotick added: “… You know if it was left to me, I would raise the prices even further,” before stating that high pre-orders for Activision products are an indication that consumers are comfortable with current pricing levels.

“As far as the premium priced product, you know, collector’s editions and things like that, I’d say we’re seeing probably more interest than we have in the past on the collector’s editions, so that’s a pretty good indication of the interest in these franchises.”

Source: Seeking Alpha

savagehenry's picture

Kotick strikes again!!

Trouble is people will pay and are already pre-ordering in huge numbers. On the surface it may seem like a huge gamble on Activision's part, but I think it's more devious and calculated. But looking at the backlash here, I reckon Kottick has done nothing more than taken a 12 gauge to the collective toes of Activision and their subsidiaries and I suspect people will be wary of them in the future. Too many out spoken remarks can earn you a reputation you'll be hard pushed to escape in the future.

It feel similar so how, to your dealer putting up the price per gram. You know you want the fix so you'll pay whatever it takes, the moral complexities go straight out the window! However even though you may have paid a special price for that hit.. For the next fix however, you'll be running around trying to find a cheaper alternative.

It remains to be seen whether Modern Warfare 2 will be any good!! and I certainly won't be putting any money down pre-ordering. Might even go with a pre-owned copy, who knows.

Richie Hogan's picture

He's just voicing in public (mistake) what the accounting department are babbling in his ear,ok lets take the whole global moneygeddon thing into account,banks have to lower interest rates to sell loans yes?lowering interest rates raises inflation (the amount stores charge for crap like transformers 2 and gi joe) so in ten years time $100 will be the equivalent of $60 now.He,in his accounting departments infinite wisdom,has decided to capitalise on that fact now in an effort to stuff more money into his fat face,presuming he eats cash,which is unlikely.oh and btw edshot?if activision had a loaded gun they would shoot themselves in every limb before they realised the safety catch was off bro.

Jack_'s picture

All I took from that is that I'd need a loan to get Modern Warfare 3.

mentor07825's picture

Lucky that you have that option, I don't as I still have an overdraft and college loan to pay.

Buy hey, as long as Activision can afford to produce and buy a copy of their games, if they so wish, then obviously we have the money to buy them.

Totally understandable.

PGTips's picture

Company CEO in 'wants to make more money' non-shocker. This is neither controversial nor surprising. Want your customers to pay more money for your product? Then raise prices on a game that, despite their bleating and "OMFG BOYCOTT ACTIVISION SMASH THE SYSTEM" whining, the vast majority of COD4 fans will snap up regardless of price.

Those that feel that strongly about such things are often the same people that cannot stand to be left behind in the Multiplayer testosterone pissing-contests that online shooters like these foster and which MW2 will no doubt fall 'victim' (delete quote marks to taste) to.

Can't stand being left behind in the hunt for your Prestige ++ cock-substitute, then guess what? Mr Kotick willl have your £55 (or more likely £110) thankyouverymuch.

AaronMC's picture

That's true. The hardcore gamers will keep buying the games. Basically, that market will accept a higher price before the increased price is offset by the drop in sales volume.

Kotick is an idiot because he's ignoring the broader market which will not bear a higher price. Nintendo has shown with its massive Wii success that the broader, more casual market is desperate for attention. Raising prices is not the way to do it.

edshot's picture

Ha ha, 'course retailers will go for his 'plan'. Only few customers would buy a game at that price in the short-term which will boost the sales of pre-owned copies even more. Meaning less royalties to Activision and more moolah to the store. Unless there's some 'arrangement' between Activision and the retailers, cos I honestly can't see Activision shooting themselves in both feet that bad.

AaronMC's picture

Exactly!

All his price raising will do is drive higher used sales, which Kotick will undoubtedly complain about, later.

DubsTF's picture

Know what? The last Activision anything I bought was COD4. I bought it used a couple years (?) ago and never got more than an hour of so into it. I have never played a plastic instrument game. I have never played World of Warcraft.

I just went to Activision's website and had a look at their back catalog. The only things I can see on a list of 209 games (that's 209, not 2009) that I might someday be interested in owning are Geometry Wars 2 and Riddick. There's an awful lot of crap on there!

So I guess what I'm saying is that while on one hand I'd hate to see this buffoon's price-raising antics spread across the entire industry, on the other hand he could immediately jack up the prices of everything Activision sells today and it wouldn't affect me at all.

I for one do not associate Activision with quality. And I spend more than a little money on games.

Jack_'s picture

Riddick : Assault on Dark Athena was dropped by them and published by Atari. It's on clearance at Target for as low as $10 for the PC version. I just finished it yesterday and it's absolutely sublime. Best stealth gameplay I've ever experienced.

So what I'm trying to say is, get it immediately.

DubsTF's picture

Noted! I wonder why Activision still lists it on their website.

PhoenixMDK's picture

Actually I don't think retailers are in favour of high prices across the board in a retail environment in which they're all suffering. What they certainly DO like are premium collectors' editions that will dissuade people from digital downloads: package anything physical with the game beyond the disc itself (irrespective of what it actually is) and the retailers will be happy.

And as many others noticed above, the disconnect between blasting the PS3's price followed by expressing a clear desire to raise your own is disingenuous as best...

quietIdentity's picture

Kotick is shooting himself in the foot with comments like these, it's like saying "Hey gamers pony up you bastards" sounds like a shtuck up shnozzeater to me.
blasting the PS3's price followed by expressing a clear desire to raise your own is disingenuous at best...
Yup it really makes you dislike the fellow.

Alex Walker's picture

Raise your prices Bobby. I'll buy other peoples games instead.

nobodyspeshul's picture

A rather ballsy statement from Kotick, considering the retail industry faces ever-decreasing consumer demand. I think he's just not being realistic.

StealthBadger's picture

Sony should team up with Kotick for an ultimate PR Dream-Team.

Oh, except Kotick's the guy who doesn't want to develop for Sony. Nice.

Top_Dollar's picture

This wanker shouldn't say shit like that in public (or even joke about it) as it'll 1) make gamers only buy 2nd hand Activision games, 2) will make PC gamers pirate their games, 3) destroy their image.

ArronC07's picture

4) end up with him losing his job.
5) Trebles all round!

Barla Von's picture


You know if it was left to me, I would raise the prices even further.

You...can go and pull my meat sword! I don't pay more than £20 for my games. This comedian is having a laugh.

Fuck it, i think i'll go and pirate/download every Activision PC game out there... just because i can!

This guy is a fucking moron!

mentor07825's picture

Must....Resist...Perfect...Pick...Up...Joke....From...What...You...Said....To....Further....Make....Point......

Must....Resist....Bannable.....Comment......

Wall_E's picture

It would help if you put that into plain english!. Idiot!

mentor07825's picture

Must....Resist...Perfect...Pick...Up...Joke....From...What...You...Said....To....Further....Make....Point......

Must....Resist....Bannable.....Comment......

Must Resist Perfect Pick Up Joke From What You Said To Further Make Point

Must Resist Bannable Comment.

How hard was that?! Fecking Frog.

Top_Dollar's picture

Joke, if that's the case he's got a fucking bad sense of humor!

mentor07825's picture

Such a bad man like himself, I know a lot of people that would want their meat sword pulled by him!!

MWAHAHAHAHAHAHA!!!!

The League of Doom, with him as Chairman!!

"Recession?! What recession?! Jack up the prices I say, arrrgh!"

Later News: Jack Thompson has awarded that man for being The Biggest Douchebag Connected To The Video Game Industry Ever award! Lets all give him a round of applause for his major achievement, for he has unlocked Microsoft points! :

100G Awarded: Being a bigger douchebag then Jack Thompson.

mentor07825's picture

I heard about this happening in a meeting with a retail chain I work for. We discussed it, and we're not all too "gung-ho" about this. We try to keep prices as low as we possibly can, and this isn't helping.

Oh Activision....

We're not amused.

Indrema's picture

Oh my God!! This guy's got balls!

Rob's picture

You go ahead and try that numbnuts and let us all know how it works out for you. You know why people eat up DLC, used games, and the Wii?? IT COSTS LESS. If a consumer finds a better product for cheaper they will buy it. Stop your ranting about everyone else's (Sony's) price if you're going to whine about increasing your own and coupling stupidly expensive add-ons that provide no experience to the game it's sold with.

These are games we are talking about and I'm one of those people who isn't going to shell out $59.99+ for one. Certaintly not the limited editions of the garbage you produce.

ArronC07's picture

Bobby Kotick probably has about 12 months left with the way he's carrying on.

SimGrave's picture

This is a funny plot twist ala Shyamalan, right there... not so long ago Kotick was complaining about the PS3's price being to high, therefore affecting the user instal base. Whether or not he was right back then, today the truth comes out. Let's threaten Sony to get their console price down so that we can increase our games' prices up. Way to go buddy!! Never saw that one coming. I don't know about you guys, but I prefer paying a little bit more on a console that a lot more on every single game I buy. The higher the price, the greater the loss. A lot of people are confortable with the current price and this is encouraging impulsive purchases as well. Get the game more expensive and your games better have the greatest reviews to get the people to buy it. Otherwise, people won't bother buying something if they aren't 100% sure of it being a good purchase. This will increase renting and secondhand market.... and piracy... this being the hellish trio every publisher was complaining about. That just makes no sense at all. Plus the fact that we are in a recess period, which affects the sales, now this. I don't know in which evil parrallel universe this guy lives, but here on Earth where people barely buy stuff at a reasonable price, they will not buy more if it costs more... and he probably wears a goatee, too. It's hard to believe Activision is one of the top of this industry with statements like this.

quietIdentity's picture

michael_sylvain's picture

First thing that struck me, too, was that he only just quit whining (twice in a week?) about the PS3 being too dear. His switch to bluntly stating he'd like to fleece his own customer base more just goes to show he's comfortable with hypocrisy and double-standards. Nice. I haven't pre-ordered any Activision games, and neither will I be. Most businessmen relaise they have to lie about their avarice to avoid aleinating their customers and turn a profit. It's funny that in a business that puts a high premium on integrity that he's so blatant in his contempt for his audience.

toadwarrior's picture

Genius idea. Include $2.oo worth of extra junk and double the price.

I think this just goes to show catering to the 13 year old jack-off, who has no concept of value for money, is bad for the gaming industry.

Top_Dollar's picture

Indrema's picture

Must....Resist.....Recycling.....Pic....For....A....Third....Time

Too Late!

mentor07825's picture

Fat and stupid looking!

WONDERFUL!

MilesMayhem's picture

I think the high amount of interest in the MW2 special edition may have something to do with the included fully functional night vision goggles that ppl can play as buffalo bill with. I dont think in general SE's are worth the extra money, this is a special case.
As unpopular as this opinion may be I actually think the guy has a point if they view this game as being better than most. The popularity of Modern Warfare and its World at War sequel was immense and if they believe they deserve extra money I cant personally disagree with it.

game retail prices should be based on quality. I dont think its fair that a game that had as much care and attention put into it as GTA4 should go onto the shelf at the same price as some rushed piece of nonsense like Fantastic 4 rise of the silver surfer, its almost insulting. I remember telling friends at the time it came out that I would have been willing to pay 3 or 4 times the retail asking price for GTA4. Some are gonna scoff at that idea but it cant be disputed how much work went into that game regardless of what you think of it as a piece of entertainment.

Of course theirs a counter argument to that being that quite a few ppl would have balked at a £200 game so i suppose its a balance they have to get right. I think ppl looking for HD gaming on the cheap though have the wrong hobby.

AaronMC's picture

Your argument makes sense if quality was an objective thing, such as amount invested. But the amount invested is not correlated with the eventual quality of the game as you imply. Frequently, the most expensive games suck the hardest. Likewise, some of the best games cost little to make. Katamari Damacy cost almost nothing, but sucked up a year of my life.

The price of any good is based on what the market will accept. Kotick's argument is that the market will accept a higher price. I think he's an idiot because, since he's talking about an ever-higher price, he only sees the hard-core gamers as his market.

md99's picture

And to think that I wasn't in favour of digital distribution at one point.

AaronMC's picture

A terrible idea.

This move will do little to deter hard-core gamers, because they are the ones who buy those premium sets. The casual gamer, on the other hand, will significantly reduce their consumption. He uses the term "consumer acceptance," while apparently being too stupid to realize that means "gamer acceptance." Gamers and consumers are different groups. All poodles are dogs, but not all dogs are poodles.

This results in an instability. If they fail with the hard-core, the broader market will not be there to absorb some sales. And by the time they realize the hard-core sales have failed, and they drop the price, they've lost the marketing momentum from the launch.

Their goal should be reducing price as far as possible and increasing the size of the market. Why do they think the used game market is so vibrant? If they simply sold the games for less, boom, larger market.

Revan_NL's picture

Who gives a f*ck about what retailers think of the higher prices? It's the consumer who has to buy these games. And recession plus higher prices equal lower sales, increased piracy and ultimately lower profit. €70 is the highest price i'm willing to pay for a game, and that's even pushing it. I don't care if the game is the best that happened to humanity since sliced bread, if it's over €70, I'm not buying it.

Peadar's picture

Seems short sighted to me. As digital distribution etc. pushes publishers to the side lines you'd think they'd try innovative ways of keeping their prices down.
I suppose special editions are intended to reduce the likelyhood of people trading in their copy of the game? And a higher price point means more profit on new purchases but surely cutting prices is more likely to make second hand games less attractive.

GeeLW's picture

Oh yes, always a good strategy to base your future profits on premium-priced "Collector's Editions."

Anyone remember the baseball card market or comics in the mid-90's? Yes, you'll sell a bunch of them, but if the quality slips, there goes the farm.

Jaumpasama's picture

Greedy bastards.

Jack_'s picture

I'm officially only buying Activision games (game?) used at a price no higher than $10. FEELING THE BURN YET?