Activision Inc Chief Executive Bobby Kotick believes that the 360, PS3 and Wii must fall to $199 in the next two years to reach mass-market appeal. He says the Wii price point is setting a standard that the others must match and issues like the Wii being less complex technically doesn't matter to consumers. "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," he said. He also went on to say that many developers had shifted resources to create games for the Wii due to its success. However Activision was approaching with caution as Wii game sales are dominated by titles made by Nintendo itself.

But Wii game sales are dominated by titles made by Nintendo itself, prompting Activision to take a more cautious approach.

"We realized that, much like Nintendo, the pathway for success and the highest operating margin leverage on the Wii is a relatively small number of titles that really capitalize on capabilities of the hardware," Kotick said.

"Some of our competitors are doing a lot more talking about how they're organized than innovating for the Wii and if (publishers) are going to be successful they are going to have to step up to the level of innovation that Nintendo has proven themselves capable of," he said.