Sony Corp. Chief Executive Officer Howard Stringer spurned calls by Activision Blizzard Inc., the world's largest video-game publisher, to cut prices of the PlayStation 3 because the $400 (¥37,000) console is unprofitable.
Activision CEO Bobby Kotick said last month the publisher of the "Guitar Hero" and "World of Warcraft" games may shift development resources away from Sony's PS3 toward cheaper rival machines.
Console prices are "too high," given the economic environment, GameStop Corp. CEO 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 in an interview in Sun Valley, Idaho, earlier this week. "I lose money on every PlayStation I make."
U.S. video-game industry revenue has fallen for three consecutive months, according to data compiled by research firm NPD Group Inc. The PS3 trails Nintendo Co.'s Wii and Microsoft Corp.'s Xbox 360 in sales. The Wii sells for $250 and the least expensive Xbox costs $200.
"He's putting pressure on me and I'm putting pressure on him," Stringer said of Activision's Kotick. "That's the nature of the business."
