

Activion CEO Bobby Kotick says that for the PS3 and 360 to have any hope of achieving mass-market appeal, their prices must drop to $199.

Speaking at the Reuters Media Summit, Kotick said that price, not technology, is what really matters to the consumer. As Kotick sees it, the Wii is setting the industry standard at the moment, and Sony and Microsoft would be wise to follow suit:

In the next 24 months they all will need to be at that $199 price point, and you can imagine Nintendo will be down to the $129 price point over the next few years.

Lower prices would undoubtedly go a long way towards persuading non-core gamers to pick up a 360 or PS3, but at that point perceived value starts to get a bit muddled. A brand new DS Lite goes for $130–are we really saying that a PS3 or 360 is only worth $70 more?

Obviously, "worth" is a relative concept, and the more people playing games the better, but at some point, don't we have to acknowledge that the tech inside the box has an value independent of the consumer's appreciation? A plasma TV is still a plasma TV, whether you watch it or not.

Activision CEO: $199 for consoles critical [Reuters]