via gamespot

PlayStation fans had a reason to celebrate today, with the PS3 finally getting a confirmed release date of March 23 in Europe and Australia. We spoke to Sony Computer Entertainment Australia and New Zealand managing director Michael Ephraim about why the 20GB model isn't being made available down under, whether local gamers can expect console shortages, and much more.

GameSpot AU: Why did Sony decide not to release the 20GB SKU of the PlayStation 3 in Australia and Europe?

Michael Ephraim: Basically, every retailer and business partner we discussed the SKUs with said that the 60GB SKU is the way to go. If you look at PS3 sales in the US, and if you look at the sales of our competitor's format, the lead SKU has sold disproportionately better--it makes up about 97 percent of all sales. We will look at the demand and the need for a 20GB SKU, but everything is telling us--including consumers talking to retailers via pre-orders--that everyone wants the top-end SKU because it has all the functionality.

We have listened to retailers and consumers, and honestly, hands-down around the world the message was to go single SKU now. Of course, this also simplifies our manufacturing--we can focus on only one SKU and then assess the marketplace from there.

GSAU: So you don't expect to lose too many sales from people who had their hearts set on the 20GB model?

ME: I really don't think so. The difference in Australia is about A$170 (between the two SKUs). The 60GB model is the PS3 in full flight, and if you're going to invest that type of money, the benefits for another A$170 are clearly there. But we will listen to what the demand is.

GSAU: If there is a demand, is there a possibility that the 20GB model will reach Australia sometime in 2007?

ME: We will look at all information and assess it. Within 2007 is not a problem--we just have to make sure there's a demand for it.

GSAU: Sony has stated that there are 1 million PS3s being made available for the PAL release. Can you tell us which countries those consoles will be going to?

ME: I'm not allowed to go through that now, not until we finalise a few things. But I can say that Australia is a very important market for Europe. Historically, we can do anywhere from 5 to 7 percent of the business of Europe. That is a $#@!ulative number over the years. So we are significant--we're not a 1 percent market. Australia has always been given its right level of allocation and share of allocation of new releases. We always launch at the same time as Europe as well, so that indicates that we're an important territory. We will get our fair share.

GSAU: So you don't foresee any shortages come March 23?

ME: That's the main question for every new format, and there is always a shortage for every new format. It's very important to get the day one number right, but we also want to plan with our retailers as much as we possibly can, to give them as much transparency as we can, when it comes to ongoing replenishments. There is the day one quantity--out of that million; Australia will get a fair share--but then we want to work with our retailers so consumers who don't get a console at launch will at least be informed as to when the next deliveries will come in. We will do the best we can to meet market demands.

GSAU: The PS3 is the last console to land in the Australian market. How does that affect your position in the next-generation console race?

ME: I'm not too concerned. By coincidence, our launch in Australia is the exact day that the Xbox 360 launched here a year ago. I think it is public knowledge that Microsoft and retailers are disappointed with the numbers the 360 has done here. GfK Australia puts the 360 at about 150,000 units install base--we're sitting on 2.2 million on PS2, so there's a long way to go. We do not see the one year head start as insurmountable by any means at all; 150,000 is a nice number, but it is by no means 2 million.

GSAU: Can you tell GameSpot AU how many PS3s you're expecting to sell in Australia this year?

ME: It's a bit early--we'd rather just work our way toward launch. It's very hard to pin down because this device goes beyond gaming. Convergence is upon us, so not only does what we do impact the sales of PS3, but also other issues, like the availability of high-definition screens and Blu-ray movies, can also affect us. It's a very dynamic market we're in, so it's hard to imagine what the exact quantities will be.

GSAU: Michael Ephraim, thanks for your time.