Activision is the largest third party gaming company out there. They pretty much dominate the gaming world with the exception of Sony, Nintendo, and Microsofts exclusive titles, they have the control of the market. If Activision stopped supporting all of the Playstation systems then Sony will be suffering, whether or not they admit it.
Could Sony even expect to survive when titles like Guitar Hero, DJ Hero, Band Hero, Tony Hawk, Call of Duty (even numbers 2, 4, 6 ect), and the many other games they bring out each year? It could seriously damage Sony in the area of console sales. With gamers knowing these great titles will not be available on a Playstation system they would turn to the competitors, probably the Xbox 360.
Why is Activision threatening Sony? They want a price cut on the Playstation system. Why they are so blunt as to demand the price cut is beyond me. I think both companies would be missing out if this goes south. The potential profits lost because Sony gamers are no longer able to buy the games, and of course Sony won’t be making money on the games sale either. Microsoft would be ecstatic as this would essentially make these games exclusive for the Xbox 360 because of Nintendo’s failure at graphics and an online gaming system.