| Phil Harrison: We Are Under No Pressure to Drop PS3's Price In an exclusive interview at D.I.C.E., Sony Computer Entertainment Worldwide Studios President Phil Harrison told us that he has "no regrets whatsoever" about Blu-ray and the PS3 launch and that Sony does not feel any pressure to drop the PS3's price this year. | ||||||||||
| GameDaily BIZ: Are you bothered by all the negative press about Sony and the PS3 lately? Even certain mainstream press publications have labeled the console biggest disappointment, etc...
Phil Harrison: No, not a bit. I think, first of all, the so called negativity is in a fairly narrow section of the media. The most important thing, however, is that the people who buy the system love it, and the fact that we have great reaction—great scores if you will—from the people who bought PS3 [who've enjoyed] the games that they've played and the services that they get. That's all that really matters. I don't really care about the negativity in the press; if it was true, if they were talking about real big issues that were genuine criticisms, then of course we'll address them, but there's nothing that bothers me. I think the fact that we are able to have a very well organized, very well managed supply channel, which allows us to keep the stores restocked, is a really positive thing. You would be sitting here saying, "Why the hell are you out of stock? Why the hell can't you manage the supply chain and why can't people buy PS3s?" So we're actually doing in succeeding in managing to keep the demand satisfied, so I think that's a positive. BIZ: That actually leads into my next question, because a lot of the analysts have been making a big deal out of the fact that retailers seem to continue to sell out of the Wii while PS3s are found in stock at more stores. What do you make of that? PH: I think you should talk to the people who are running those stores. Talk to the people who run GameStop, talk to the people who run BestBuy, and they'll tell you that the demand is unprecedented and that they give us kudos for managing to keep a very sophisticated supply chain moving. What our competitors are doing I can't speak to but I know we are achieving our goals of keeping the market supplied and working closely with retailers to make sure they get informed about when supplies are coming in so that they can match their internal and external communications to store managers and consumers about when to buy a PS3. If that means that for Wednesday through Friday there were a few machines on a shelf in a store in Milwaukee, great!
BIZ: Jack Tretton recently said the PS3 would be difficult to cost reduce, and yet a Japanese exec followed that by telling reporters that Sony would consider a price drop. What are the odds that we'll see a lower price on the PS3 this year? PH: Well, I'm not sure about the context in which Jack made that comment... but the PS3 technology, as with any of our platforms, starts off life at a high price and then we engineer cost out of it. And that process is an investment that you make to combine chips into a single chip or to reduce components or combine components and redesign things, and that investment is part of our planned R&D effort to reduce cost. At the appropriate time and when we can afford to, the business model of the industry is to pass those savings onto the consumer, but we're a long way away from doing that yet. BIZ: But don't you feel pressure from the realities of the market and people who maybe don't want to spend $600? Do you feel there is pressure to drop the price this year? PH: Absolutely no pressure at all. I think that the reality of the market is that there's a great deal of software people want to buy, there's a great deal of software coming that will stimulate further activity in the market. We're very comfortable with the plan. BIZ: A lot of gamers, including myself, enjoy the controller's motion sensing at times, but we still miss rumble. If gamers want it and are vocal enough, will Sony reintroduce the force feedback at some point? PH: We have no plans to do so in the standard controller that ships with PlayStation 3. I believe that the Sixaxis controller offers game designers and developers far more opportunity for future innovation than rumble ever did. Now, rumble I think was the last generation feature; it's not the next-generation feature. I think motion sensitivity is. And we don't see the need to do that. Having said that, there will be specific game function controllers, potentially like steering wheels that do include vibration or feedback function—not from us but from third parties. BIZ: When you look at all the bad things associated with Blu-ray – the big cost it added to the PS3, the fact that it was mainly responsible for the initial shortage and delay to Europe, the slower disc read times – are you still happy with Sony's decision to go with this technology? PH: It wasn't Sony's decision; it was our [SCE's] decision. We needed to have Blu-ray disc from a game design point of view. The chipsets in PS3 chew through data at such a rate that in order to build variety and detail and quality into the games, we need more than nine gigabytes. Now, the fact that we could also adopt the preeminent next generation movie format into PS3 was an added bonus, not an added cost. [What you said regarding] disc speed is a complete myth. It makes no difference to the operation of the game whatsoever. The blue laser diode, as you well know, had a blip short-term ramp up issue, which is now past; that's now behind us. That did cause us some challenges in being able to supply the launch worldwide, but that's all resolved. BIZ: So no regrets? PH: No regrets whatsoever, and it's those kinds of decisions, painful though they were to live through in the last quarter of 2006, those are the decisions that are going to propel PlayStation 3 to be a platform that lasts for ten years, like we've seen with PS1 and PS2. And it will be, I believe, reflected on as the smartest decision we ever made. | ||||||||||
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