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Speaking to GamesIndustry.biz at E3 this week, Microsoft's games boss Peter Moore discusses his reaction to Sony and Nintendo's conferences, and Microsoft's own plans for the future of the games business.
GamesIndustry.biz: All three companies laid their cards on the table earlier this week - from your perspective, what do you make of the three conferences and the reaction to them so far?
Peter Moore: I think that we came here with a very focused view on what we needed to communicate at our press conference. I was quite frankly surprised at what Sony had to show - and I was a little surprised at the pricing announcement. We weren't quite sure about whether they were going to come clean with the pricing. Having two SKUs sounds familiar, having a global launch in November sounds familiar...
I'm trying to rationalise $500 and $600, though. I don't know what that is in pounds - they haven't announced pricing yet - but I remember the abuse we got for ï¿. I'm trying to rationalise whether Blu-Ray, a format that hasn't hit the market yet, can justify that pricing - and whether, when I look at their games and look at our games, I can see a $200 or $300 price differential in the quality of their games versus our games. I don't know about you, but I'm not seeing that yet.
Maybe I'm missing it, but when I see Gears of War... When I know that what you saw from Halo 3 is in-engine... Actually, blown up on the big screen, I didn't like the way it showed, because I've seen it on things like this [gestures to LCD screen] which is the way you should see it, and the game was spectacular. That was not CGI, that's in-engine work.
Then, having that little announcement of making sure that Grand Theft Auto IV debuts on our platform on day one, October 19th in Europe - when I roll all that together, and throw in this little thing called Xbox Live, and all of the opportunities that has provided for gamers to look at different ways to play, for publishers to have the opportunity to commercially transact with consumers who are totally connected. Xbox Live and Marketplace continues to be a monster phenomenon.
I add all that together, and compare it to what I'm seeing from the other guys, and I'm feeling pretty good that we're certainly in the right place. You know, having ten million units head-start - it's funny, you wrote about it at the ELSPA Summit last summer when I said that ten million was important. People kind of laughed at that and said there was no way we could do it, but we'll hit ten million way before the holiday of this year.
We think that a head-start of that magnitude is a virtuous cycle. There's a lot of goodness for publishers, there's a lot of goodness for retailers - but more importantly, we're driving Xbox Live, driving Marketplace, driving Arcade, driving fresh, downloadable content.
Providing gamers around the world - as we're dong right now, in real time - the ability to download hi-def content. We put everything you saw at the conference up on Marketplace last night, so that the guys who can't get to E3 can experience it on their hi-def TVs or whatever way they want to experience it. We're getting the numbers right now, but I can feel the heat from the servers as they handle those downloads. The Gears of War demo is being downloaded, the video of that, the trailer itself - and of course, Halo 3, the in-game video that we showed.
So I'm feeling comfortable that we're delivering what we say we're delivering. I don't think we've ever said things that we haven't delivered on, at this point. Last year was tough for us, because we took the high road; you, and everyone else, criticised us for having alpha kits running, but to me it would have been disingenuous to show videos of things that we needed to ship that year.
I haven't had a chance to go over to Sony's booth - I'm sure there's a ton of playables over there, I don't know. I want to go see Killzone, and see what it looks and feels like that.
You'll be disappointed on that front I'm afraid, there's no sign of it this year.
Yeah, well. There's a surprise.
From our point of view, we're completely focused on delivering volume and supply for retail this year - because it's going to be another tough holiday if we don't step up our volume.
Despite what Sony will tell you, they really don't know - they don't know what their yields are, they don't know what issues they're going to face in production. While I hope for the good of the industry that they hit the numbers that they say they're going to hit, it remains to be seen whether you can ramp at that level. That's a lot of units ramping; they've got to start making it very soon. Complexities of Blu-Ray, complexities of Cell technology, silicon yields and what have you... They'll figure it all out, but they know it's not easy.
You mentioned GTA IV a moment ago, but is it really a huge coup for you just to get equal treatment from Rockstar on a game? Is a simultaneous multi-platform launch really worth tattooing yourself over?
Well, here's the deal - yeah, absolutely. Many people would attribute the success of the PlayStation 2 to the success of Grand Theft Auto 3. It is our view that in the next generation, third party exclusives will become harder to find - so what people were missing, and maybe it wasn't made clear, is that day and date is important to us because when we do our research and ask PS2 owners why they're going to buy a PS3, they say it's because the only place they'll get Grand Theft Auto. That is empirical data that we've been amassing.
So when you talk about neutralising
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