By GamePro staff, IDG News Service

Sony and Microsoft need to drop the price of the PS3 and Xbox 360 respectively if they wish to compete with the widely popular Wii, Activision CEO Bobby Kotick said on Tuesday.

"In the next 24 months they all will need to be at that US$199 price point, and you can imagine Nintendo will be down to the $129 price point over the next few years," Kotick told Reuters.

"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."

Both Microsoft and Sony have cut prices and tweaked console features in a bid to attract new gamers over the last year. Meanwhile, Nintendo has struggled to meet the demand for Wii since its launch, despite maintaining its original $250 price.

On the subject of game-makers shifting resources to capitalize on Wii's popularity, the Activision boss recognizes the challenge of competing with Nintendo's first-party games.

"If (publishers) are going to be successful [on Wii] they are going to have to step up to the level of innovation that Nintendo has proven themselves capable of," he said.