SAN FRANCISCO (Reuters) - Activision Inc. Chief Executive Robert Kotick said on Monday he expects video game prices for older consoles to fall as titles for next-generation boxes become available in the coming months.
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Microsoft Corp. has promised to have its new Xbox 360 on U.S. store shelves on November 22. New consoles from Sony Corp (NYSE:SNE - news). -- maker of the market leading PlayStation 2 -- and Nintendo Co. Ltd. are due out in 2006.
With the exception of blockbuster titles, console games debut at $49.99 and see three $10 price cuts.
"You're likely to see price declines on the older- generation software," said Kotick, who was speaking at an investor conference here.
But Activision Inc. expects sales volume to tick up in 2006, said Kotick, who leads the industry's second- largest video game publisher.
Microsoft expects to have up to 40 titles ready by year-end for the Xbox 360 -- more than twice the number it had with the original Xbox.
Activision's planned games for the Xbox 360 include "Tony Hawk's American Wasteland," Western-themed shooter "Gun," "Call of Duty 2" and "Quake 4."
Video game publishing has traditionally been roiled during moves to new hardware because sales of games for existing consoles drop off before games for new consoles ramp up.
"I'm a pretty big believer that history is likely to repeat itself," Kotick said at the investment conference sponsored by Bank of America when asked about industry volatility.
Activision already has had changes in its publishing ranks.
The company said in a regulatory filing earlier this month that Ron Doornink will retire as chairman of Activision Publishing, effective December 31 -- a full 18 months before his contract was to have ended.
He had been CEO of Activision Publishing since March 2002 and won kudos as a video game player.
News of Doornink's pending departure came after the company disclosed in a another filing that Kathy Vrabeck, president for worldwide studio operations and the industry's highest-ranking woman, resigned on September 2, but will stay on until April 2006.
Activision in June named former Procter & Gamble executive Michael Griffith as president and chief executive of its publishing unit, moving former chief Doornink to the position of chairman. Kotick said the changes were aimed at strengthening Activision's management team.
The video game publisher also said earlier this month that Thomas Tippl, another Procter & Gamble alumnus, will succeed William Chardavoyne as chief financial officer when he departs at year-end.
The changes at Activision come as video game publishers shuffle management ahead of more sophisticated gaming consoles, which are expected to force publishers to increase investment in games for the new systems.
Earlier this month, Electronic Arts Inc. said Don Mattrick, its president of worldwide studios, left the leading video game publisher to pursue other opportunities. It promoted from within to replace him.
Elsewhere, Sony formed a new umbrella company called Sony Computer Entertainment Worldwide Studios to oversee game development. That unit is headed by Phil Harrison, who continues as executive vice president of product development for Europe.
http://news.yahoo.com/s/nm/20050919/wr_nm/tech_activision_dc;_ylt=AhuYBbT_p2SpeWA.DVMah60jtBAF;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl
ADVERTISEMENT
Microsoft Corp. has promised to have its new Xbox 360 on U.S. store shelves on November 22. New consoles from Sony Corp (NYSE:SNE - news). -- maker of the market leading PlayStation 2 -- and Nintendo Co. Ltd. are due out in 2006.
With the exception of blockbuster titles, console games debut at $49.99 and see three $10 price cuts.
"You're likely to see price declines on the older- generation software," said Kotick, who was speaking at an investor conference here.
But Activision Inc. expects sales volume to tick up in 2006, said Kotick, who leads the industry's second- largest video game publisher.
Microsoft expects to have up to 40 titles ready by year-end for the Xbox 360 -- more than twice the number it had with the original Xbox.
Activision's planned games for the Xbox 360 include "Tony Hawk's American Wasteland," Western-themed shooter "Gun," "Call of Duty 2" and "Quake 4."
Video game publishing has traditionally been roiled during moves to new hardware because sales of games for existing consoles drop off before games for new consoles ramp up.
"I'm a pretty big believer that history is likely to repeat itself," Kotick said at the investment conference sponsored by Bank of America when asked about industry volatility.
Activision already has had changes in its publishing ranks.
The company said in a regulatory filing earlier this month that Ron Doornink will retire as chairman of Activision Publishing, effective December 31 -- a full 18 months before his contract was to have ended.
He had been CEO of Activision Publishing since March 2002 and won kudos as a video game player.
News of Doornink's pending departure came after the company disclosed in a another filing that Kathy Vrabeck, president for worldwide studio operations and the industry's highest-ranking woman, resigned on September 2, but will stay on until April 2006.
Activision in June named former Procter & Gamble executive Michael Griffith as president and chief executive of its publishing unit, moving former chief Doornink to the position of chairman. Kotick said the changes were aimed at strengthening Activision's management team.
The video game publisher also said earlier this month that Thomas Tippl, another Procter & Gamble alumnus, will succeed William Chardavoyne as chief financial officer when he departs at year-end.
The changes at Activision come as video game publishers shuffle management ahead of more sophisticated gaming consoles, which are expected to force publishers to increase investment in games for the new systems.
Earlier this month, Electronic Arts Inc. said Don Mattrick, its president of worldwide studios, left the leading video game publisher to pursue other opportunities. It promoted from within to replace him.
Elsewhere, Sony formed a new umbrella company called Sony Computer Entertainment Worldwide Studios to oversee game development. That unit is headed by Phil Harrison, who continues as executive vice president of product development for Europe.
http://news.yahoo.com/s/nm/20050919/wr_nm/tech_activision_dc;_ylt=AhuYBbT_p2SpeWA.DVMah60jtBAF;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl
