Activision threatens to drop PS3

Growing tired of the Playstation 3’s high price tag, the head of gaming’s biggest publisher is threatening to drop future support of the console if the price doesn’t come down.

"If we are being realistic, we might have to stop supporting Sony," Activision CEO and President Bobby Kotick (pictured) told the Times of London. "When we look at 2010 and 2011, we might want to consider if we support the console — and the PSP [portable] too."

The mention of the PSP is likely referencing Sony’s PSP Go, a UMD-less handheld that will sell for $249 when it goes on sale this October. Analysts have criticized the price tag for being too high.

Kotick’s words seem harsh, but by citing next year or the year after as the time frame for dropping support, Kotick reveals his bluff. I don’t expect Sony to go two years without cutting the Playstation 3’s price from $399, and Kotick probably now feels the same way.

Ars Technica suggests that Kotick is making a play for better support of Activision’s upcoming blockbusters, such as Modern Warfare 2 and DJ Hero, with advertising and lower licensing fees. That’s speculation of course, but it makes sense as motivation for Kotick’s comments if Activision isn’t actually looking to drop support.

Publishers calling for PS3 price cuts is nothing new at this point. They want a wider install base in order to sell more games, but Sony can’t afford to drop the price without taking deep revenue losses up front. The company has repeatedly denied any suggestion that the PS3 will be less expensive in the near future.