The latest buzz from Activision is that the company is planning to cut off ties to the Playstation 3 if Sony is unable to make a sizable dent in the gaming market. Activision's claim is that they are losing money on developing games for the PS3 and there aren't enough consumers out there interested in buying games for the console. The Activision CEO even went so far as to demand that Sony cut it's price tag for the PS3.
The news has to come as a kick in the face to Sony for more reasons than one. The PS3 grew sales because Sony edged out in the war for HD video over HD DVD. As movie production houses/distributers slowly bailed on Toshiba's brand of HD DVD, Blu-ray took center stage, until Blu-ray finally dominated the market.
Now Sony is facing a similar battle in the console gaming wars, and this time they're the underdog. Sure the PS3 may be the best console technology wise, but the Wii was the worst console and sales statistics deliver slam dunks year over year just - due to the unique marketing campaign and design. The Xbox remains the number one elite console because it was first to market, and the Xbox Live community became an overnight sensation with Halo. Sony has failed time and time again to really make a dent in the gaming market. They deliver 1 or 2 proprietary games a year, that most gamers vote to pass on. In this market, why buy a new console if you've got one already that can play 90% of the games.
The PS3's saving grace is Blu-ray. But, if Activision jumps ship, who will follow? The Grand Theft Auto Franchise chose to go 360 before PS3 this time around.
Activision may be the David of Sony's Goliath tale. The tide is shifting and Sony needs to step up their game by slashing prices and creating more buying incentives for consumers. If they don't the PS3 will end up as tomorrow's Neo Geo. Well it won't be that bad, but they'll definitely get a rude awakening.
