The global head of games publisher Activision has said that the three main console manufacturers "need" to drop the price of their machines in the next two years.

Activision's CEO Bobby Kotick believes both Sony and Microsoft will reduce the price of their consoles to $199 (£100) to reach mass market consumers, while the Nintendo Wii, which is currently on sale for $250 (£125) will drop to as low at $129 (£65) in the same time frame.

"The Wii at its price point is now setting a standard and an expectation, and people say, well, the Wii is less complex technically," Kotick told Reuters.

"I don't think that really matters as much to the consumer.

"In the next 24 months they all will need to be at that $199 (£100) price point, and you can imagine Nintendo will be down to the $129 (£65) price point over the next few years."