Sony hangs tough on PlayStation 3 cost

Activision may look more to the cheaper Xbox and Wii for products like Guitar Hero. Photo / Supplied

SAN FRANCISCO - Sony chief executive Howard Stringer spurned calls by Activision Blizzard, the world's largest video-game publisher, to cut prices of the PlayStation 3 because the US$400 ($638) console is unprofitable.

Activision chief executive Bobby Kotick has said the publisher of the Guitar Hero and World of Warcraft games may shift development resources away from Sony's PlayStation 3 towards cheaper rival machines.

Console prices were "too high" given the economic environment, GameStop chief executive officer Daniel Dematteo said during the company's last earnings call in May.

"I think he certainly likes to make a lot of noise," Stringer said of Kotick yesterday. "I lose money on every PlayStation I make."

The PlayStation 3 80GB version sells for about $700 in New Zealand.

US video-game industry revenue has fallen for three consecutive months, according to data compiled by research firm NPD Group.

The PS3 trails Nintendo's Wii and Microsoft's Xbox 360 in sales. The Wii sells for US$250 and the least expensive Xbox costs US$200.

Activision Blizzard spokesman Ashley Dyer didn't return calls.

"He [Kotick] is putting pressure on me and I'm putting pressure him," Stringer said. "That's the nature of the business." Sony shares have risen 21 per cent this year.

- BLOOMBERG