Activision, like EA Games, is considering micro-transactions for upcoming games and has suggested that’s it quite wary of the next-generation of console’s potential low price tags.
This announcement was made to investors, where Activision displayed a surprising lack of confidence in its ability to generate high turnover with the next-gen: “If we fail to successfully manage our new product development, or if we fail to anticipate the issues associated with that development, our business may suffer,” it said (via VG247).
“Our business model is evolving and we believe that our growth will depend upon our ability to successfully develop and sell new types of products, including free-to-play games which are monetized through in-game microtransactions rather than an up-front fee, and to otherwise expand the methods by which we reach our consumers, including via digital distribution.”
It went on to warn investors that they may need to throw money at the problem to make it go away, funding new ways of making money within games – perhaps micro-transactions, or at the very least games that are free to play and therefore don’t have a quick monetary turnaround.
Console game pricing is also a worry for the publishing giant:
“If we are unable to continue to charge the same prices we have historically charged for current-generation titles for Microsoft’s Xbox 360, Sony’s PS3 and Nintendo’s Wii, as well as for next-generation consoles, whether due to competitive pressure, because retailers elect to price these products at a lower price or otherwise, we may experience a negative effect on our margins and operating results,” it added.