ctivision's Chief Executive Bobby Kotick said yesterday at the Reuters Media Summit that prices of both the PS3 and Xbox 360 must drop to reach mass-market appeal, and that the key price point is $199. Kotick commended Nintendo with launching at a $249 price point and said that Nintendo was setting a standard for the industry.

"The Wii at its price point is now setting a standard and an expectation, and people say, well, the Wii is less complex technically. I don't think that really matters as much to the consumer," Kotick told the Reuters Media Summit. 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," Kotick said.

Nintendo has repeatedly denied that they would drop the price of the Wii this year, however in two years time, anything could be possible.