E3 '07 Q&A: Sony Europe's David Reeves

SCEE CEO explains why Europe's not getting a PS3 price drop, claims 60GB model is being phased out in North America, something special coming to PS3 this summer.

SANTA MONICA, Calif.--On Monday, in a preemptive E3 strike, Sony released a surprise announcement stating that the 60GB PlayStation 3 model would be getting a price cut, and that the new model, with a bigger, 80GB hard drive--previously confirmed only for South Korea--would also be coming to North American soil. European and Australian gamers were told on Thursday that there would be "an announcement related to SCEA's announcement," and the PAL regions held their collective breath for the next four days.

SCEE CEO David Reeves.

As promised, Sony Computer Entertainment Europe CEO David Reeves took to the stage at a SCEE event in Venice Beach to reveal the company's localized plans for the European and Australasian regions. Many were expecting him to announce a price cut for Europe, too, along with a date for the introduction of the new 80GB model. Many, then, were surprised to hear the Sony executive state quite firmly that there would be no price cut for the region, and "in the foreseeable future" no 80GB machine, either. Instead, Europeans will be offered a new "Starter Pack" bundle, which will add an extra controller and two first-party games, Resistance: Fall of Man and MotorStorm.

GameSpot sat down with Reeves after his presentation to ask him about the reasoning behind the lack of a price cut for PAL territories, along with what would be revealed at Leipzig in August. The executive also revealed that the 60GB PlayStation 3 would be being phased out in North America.

GameSpot UK: How's it going for you this year at E3?

David Reeves: I came in this afternoon and I'm leaving tomorrow, so I'm probably not the right person to ask.

GS UK: So it's a flying visit for you?

DR: Yeah. We have none of our managing directors here. We're going to concentrate on showing everything at Leipzig.

GS UK: It did sound that way during your presentation. Do you think Leipzig will be replacing E3?

DR: Well, it won't be replacing E3, but it is something where, together with our game developers, we and they realize that there's E3, there's a European event called Leipzig, and there's the Tokyo Game Show. Developers can't spend the whole of their lives producing demos; they can do it for one of them. So, for example, you saw Killzone at E3, you'll probably see the same Killzone at Leipzig, but maybe by the time you get to the Tokyo Game Show, you'll see another Killzone. So they'll be different iterations, which is why it is important for Sony to have these three regions so that we can show, at least from a software point of view. What I was talking about with PSP there will be new services, and those services are European specific or Australian specific. So there's no point in showing them at E3 and talking about them, it's like talking about something like Freeview. So that is why we are going to talk about it in a European event.

GS UK: Sony last year seemed to have quite a lot of titles that were being developed by the European developers and exclusives for Europe--for example, Eye Toy and SingStar. There's not the same sort of presence this year in focusing on European-developed games.

DR: No, because I think that the games you're talking about--social games--they come midcycle, and I think they will come midcycle for the PlayStation 3. Also, they wouldn't have had the same success in the States as they had in Europe. SingStar is top of the charts in Germany, Sweden, Norway, Spain consistently, which is why it will get a more receptive audience if we show it in Europe. For the US, it's far better to show things like Killzone, or the next God of War or something like that.

GS UK: So, let's talk about the price drop of the PS3 in America and not in the UK. Many would ask, instead of the new bundle, why not just drop the price of the PS3 in the UK?

DR: Let's understand what the Americans have done. They're going to introduce an 80GB model at $599 with MotorStorm on August 1, and they've got stock in trade of the old model. They're just selling it off, they're not dropping the price. The price from August 1 is going to be $599 because all the 60GB models will have gone. They've got to find a way to get rid of the old stock, and that's what they're doing. We don't have that problem in Europe.

GS UK: But Europe is paying a higher price than the US already, before the price cut, if you convert it to dollars.

DR: It is. But so is a McDonald's hamburger. You can buy a hamburger here for $4.99, or for £4.99 in the UK. That's just how it is. The exchange rate is two-to-one at the moment, and a few years ago it was 1.41 against the dollar. So what do you do? The cost is the same in Europe, the cost is the same in the US. Also, the fact is that they always quote the price in Europe including VAT, and the US never include VAT in the price. So it's an unfair comparison. We really believe that what we're doing with the value in the summer, you don't drop the price in the summer. Unless you're a handheld.

GS UK: The PSP is getting a redesign. Many people would suggest that the way to improve the PSP would be to improve its software instead of a redesign of the hardware itself.

DR: Absolutely right.

GS UK: So is Sony still focusing on producing new content and new things on the software front?

DR: I hope so! I think what they're going to do is that there have been some games that have come out on the PlayStation Network, I don't want to call them minigames, but they come from really hot-shot developers, small studios, and they've been quite successful on the downloads and we're probably going to try and refocus some of those games onto PSP, because they are ones that people probably haven't seen. I think Nintendo has done superbly with what they've done on the DS, absolutely spot-on. I think we probably missed a trick with PSP with not having the original games. Maybe we've been taking it too high up with games that are PS2 look-alikes.

GS UK: Can you give us any examples of the downloadable games that you're talking about?

DR: Calling All Cars.

GS UK: So David Jaffe and the like, are they working on PSP titles at the moment?

DR: Well, they are, they are. Not David Jaffe himself, but that group, they produce some great online games, and I think we can also get those on to PSP as well.

GS UK: You said something really special would be coming for PS3 at this yea'rs Leipzig. Any more you can tell us about that?

DR: ...

GS UK: Is it going to be something on the software side? A download?

DR: None of those.

GS UK: OK. So peripheral-based, perhaps?

DR: Possibly. Possibly a peripheral.

GS UK: Thanks for your time.

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Discussion

210 comments
lanista
lanista

"V4LENT1NE I really want a PS3, but I cant help but get the feeling being in Europe I am getting screwed over by them." I agree. I've yet to go next-gen, but to move from my PS2 I have to overcome some annoyances with Sony re the PS3: - it was released in EU way after US and JPN - it had hardware BC stripped out from the start - yet the price is high compared with the $ - the unit is probably manufactured in the East so why the price difference between EU and US ? doesn't seem a logical reason other than fans in EU will pay high prices rant over

V4LENT1NE
V4LENT1NE

I really want a PS3, but I cant help but get the feeling being in Europe I am getting screwed over by them.

TJsimulation
TJsimulation

scee, sony, playstation 3, david reeves, next gen

Franzkill
Franzkill

PLEASE does anyone else agree with me when I wonder how on Earth this guy has become the CEO of SCEE!? Get this the guy says a Mcdonalds hamburger costs £4.99 in the UK...£4.99!!? Where the heck did he get that figure from LOL. Wonder if he said that for his job interview. Also he is actually favouring the PSP having a weak software lin up and too many PS2 lookalike games when he HIMSELF works for Sony. I mean WHAT IS THE WORLD COMING TO? Not sure whether to respect him for his honesty or kick him in the nuts for gving Sony a bad word hehe.

nickeldon
nickeldon

The extra super secret ad on? A picture of your mom. Probably just another example of leapfrog technology. A more stylish controller design with a few new options like remote power on/off, or something. I want to see them add a high def package with the cables included.

Sanguis_Malus
Sanguis_Malus

Its all lies, Europe once again is shafted. This will continue to happen until the European consumers by large stick two fingers up at these greedy company's.

eric_neo3
eric_neo3

yawn more profit for the big wigs.saddly ive lost all faith in sony they've done stupid things claiming its what their people want and then force feed them crap and get away with it only to see how far they can go before its TOO far. The PAL market is only receiving the old stock with features removed and a fairly bland boring line of games for ps3 which in new zealand usually come out six months or never after the release date. I won't be buying a xbox 360 lead brick or a 90's wii running on old emulation tech, as in the gamefaqs poll the time when I get a ps3 it will read "Clearance sale" or bargin bin items.

MrSander14
MrSander14

[quote]no price drop but there adding an extra control worth 50$ and 2 games worth another 100$ to me that is a 150$ extra in your same price. were is the problem? you dont' have cash? get another job or get a wii[/quote] games are 70€ here... that is like 75$ :D i think this is a great offer, as long as this pack is 600 or 650€ ....

saturdaysuze
saturdaysuze

we, in europe, are being kicked in the teeth at every turn with the ps3. we're loyal customers, and far from being rewarded for being so, it's all down to the next profit margin, and more power. well, i USED to be a loyal customer, without backwards compatability and the same pats on the back that everyone else gets, i say we should stand firm and let sony know how displeased we are with them!

chamber303
chamber303

no price drop but there adding an extra control worth 50$ and 2 games worth another 100$ to me that is a 150$ extra in your same price. were is the problem? you dont' have cash? get another job or get a wii

PMonkey
PMonkey

Yet another blow to the European market. No price drop because we did not ever get the option to buy a slightly cheaper make of the ps3. Also btw we wont be getting the bigger hard drive for probably another year... Of course this is not a major problem i suppose due the the total lack of a decent amount of ps3 exclusive titles and before you say Motor storm and RFOM at me i have both these and they took no time at all to finish. So what is there out there for me to buy for my ps3 now? Nothing that you cant get on my 360 which has achievement points (Yes i do like my achievement point) so imo is better return on y money spent. Oh and of course the games cost about 10 - 15 pounds cheaper on the 360. Come on Sony give me games i can say 'Yes i bought my ps3 on launch day and have xxx game to play on it. I dont regret spending all that money on a glorified Blue Ray player which in all fairness will probably go the way of Laser Disc as there is not really much point in replacing my vast DVD collection so soon after swapping from VHS for no were near as big as a quality leap.' Please Sony get your exclusives out soon i really cant bare to ebay my PS3 quite yet :(

DrMario57
DrMario57

Blantly a ps-remote... just like the wii. hahahaha

cloudy14
cloudy14

Sony definitely sucks, microsoft is gonna get way ahead and sony are gonna be left to drown if they dont announce more big titles, waiting was the worst thing they could of done. No one is gonna by the PS3 anyway its to expensive.

cloudy14
cloudy14

Sony definitely sucks, microsoft is gonna get way ahead and sony are gonna be left to drown if they dont announce more big titles, waiting was the worst thing they could of done. No one is gonna by the PS3 anyway its to expensive.

johnno92
johnno92

interesting sounds like something funs coming

lockstock
lockstock

this guy sounds as if he doesn't have all the facts, he'd make a great politician, We euros should wait until Leipzig to get the full skinny.

Ponczman
Ponczman

[This message was deleted at the request of the original poster]

Ponczman
Ponczman

I don't wanna be cruel but this is some kind of bull*&^*!# !! They don't make pice cut, and old models can lay in Europe....yeah....what about gamers? is $ is that what they want only? soon european gamers will be so pissed (if they already are'nt) that SONY can kiss their european asses......this all situation doesn't look pretty SONY.....think about it......aaah and one more thing - DON'T COMPARE Burgers that cost 5 $ or 5 Euro to PS3....that console is so expensive comparing costs to earnings 4 example in my country, + HD TV,...damn...I'm a student and I must work at least 6 months in Bookstore (where I'm workin') to buy it.....man I'm PISSED......

xXrebel666Xx
xXrebel666Xx

mistacoon, did you not read the article? "Let's understand what the Americans have done. They're going to introduce an 80GB model at $599 with MotorStorm on August 1, and they've got stock in trade of the old model. They're just selling it off, they're not dropping the price. The price from August 1 is going to be $599 because all the 60GB models will have gone. They've got to find a way to get rid of the old stock, and that's what they're doing. We don't have that problem in Europe." The GoW symbol in your avatar didn't make it obvious your a blatant 360 fanboy. why whine to make yourself feel more secure about purchasing an older less, superior console? Both are good, get a grip.

Mistacoon
Mistacoon

sony you are officially re tar ded. lowering the price of the ps3 and then stop selling it? o ya thats genius.

alberto2045
alberto2045

dude really what is Sony doing?! they do one thing in a continent then they do another one in another whats the point do the same move in the whole wrold not get out one controller out in Europe, 20GB added to the North America consoles. I dont get thier moves what are they doing??!!!

TTDog
TTDog

@BeanoBob: I wouldn't feel too bad at missing FF's, they've been pretty poor since VII anyway, just check out Blue Dragon and Lost Odyssey, both from the creator of FF.

BeanoBob
BeanoBob

Sony have made a total joke of themselves, I was really pumped to get a PS3 back when they were about to go pre-order, the money was there ready to be paid, and they released the emotion removal for Europe, with no price cut... I was a fan Sony, not a frigging mug, so I popped out and got myself a 360 instead and a whole bunch of games/controllers for the same cash, and tbh, Ive never bothered with PS3 again, 360 is fab. 360 & Wii all the way for me now, this kinda rubbish statements from a top dog at Sony really just justifys my decision, only games I really cared about are GTA and FF..... FF sure Ill miss, but GTA4 gonna rock on 360 with the downloadable content, so haha Sony, you loose, and you can blame it on the mindless morons like this guy for it.

Franklatank
Franklatank

This is bull-pap it really is, the Mcdonalds comment infuriates me, the overall cost of beef, labour and taxes drives up the cost of average consumer goods by a small fraction. When PS3's are all made in Asia with a cheap labour force, he can't justify charging European gamers twice of how much American gamers pay for their PS3 and three times how much people in HK and Japan pay for their PS3. With this stinking arrogance (Remember: "The Next-Generation doesn't begin till we say it does." ?!) i really can't see myself paying anything to this company ever again. They're backward, arrogant and so far up their own arses they should be inside out.

wreckgar_
wreckgar_

how anyone in PAL territories can still be a sony fan amazes me. i mean, here you have one of the most important people in the company giving half-arsed answers to questions that are incredibly important to PAL gamers. and that statement about a hamburger being the twice as expensive here as it is in the US? what a load of crap!

blancobo
blancobo

Nice info, yet shy on the details I(typical of course). None the less, it would have been nice to read some more about the PSP redeign.

DuaneDog
DuaneDog

Totally unbelievable! That silly Hamburger comment pretty much proves that Sony must either be staffed with idiots or are intentionally infiltrated with executives short selling on the side looking to drive the company right into the damn ground. They may as well just give up on the Europe market at this point altogether. And given the way they roll over there those guys may be out burning PS3's in the street before it's over.

RorshachV
RorshachV

this was very interesting, no matter who you're rooting for

dannyodwyer
dannyodwyer staff

He's a lot more honest and oppinionated than the exec's in the states anyway.

easteast
easteast

I liked how he didn't say anything at the leipzig question. :P

veveqa
veveqa

Wow, Sony's execs and PR guys seem to be engaging in some sort of contest to see who can offend gamers the most. That might be fine if they had a system which sold itself, was reasonably priced and had amazing exclusive games, like the PS2, but the PS3 isn't that system. This is particularly silly given that gamers are the current "main market" for the PS3, with it's high price and rather "non-casual"-style of games, and success with them is the only way it's going to reach the mass market penetration that the PS2 did. Personally I have to wonder if they've just given up on the PS3, and are trying to make as small of a loss as possible before releasing a PS4 or quietly getting out of the gaming hardware market. This guy is characteristically (of Sony exec/PR) "out-of-touch". £4.99 McDonald's burgers? On what planet, mate? Burger King, maybe, but then in the US, you're paying $6-8 for the same thing, not $4.99. That's a very false analogy. It drops the VAT thing in there too as if it remotely covered the price difference - it doesn't, because 100% more is not the same as 17.5% more :) So now we have: Vastly higher price, even account for VAT etc. Inferior hardware (no Emotion engine etc.) Inferior capacity (60gb vs 80gb) and for our troubles we get two has-been games, neither of which got stellar reviews, and a gamepad. Good job Sony, good job. I'm extra-bitter, I admit, because when I heard about the price drop I was pretty much ready to go and get one as soon as they announced the drop in the UK, but £425 for something that's worse in all ways? You have to be kidding.

mpeg3s
mpeg3s

You caused your OWN DEATH SONY: UK PS3 80 GB dropped!!!! "You know, the difference between 60 and 80GB is very small," he said. "We just feel that going up 20GB is not worth it; if you're going to double it, it's worth it, so maybe you'll see something a little bit later, but 60 and 80 -- [there's] really not that much difference." http://www.1up.com/do/newsStory?cId=3161309

cybolt
cybolt

Paraphrased as: "we charge the price of a full meal and give you a McDonald's hamburger in it's place."

HALOISTHEBEST26
HALOISTHEBEST26

i think if a console maker makes a new console and sells it for the same price and same release dates and make europe perfectly equal with the U.S. they would make a lot of money

cybolt
cybolt

And still.... until there is a substantial price cut, and a wider variety of games (that I cannot play on the other CHEAPER systems) I shall not be buying a PS3. Maybe in a couple of years.....

MCW101
MCW101

Come on SONY !!! .... lower the price / keep the price at 499 US dollars and do the same move for Europe!!

TTDog
TTDog

"el_hermoso: does the price of the controller and +1 game compensate for a price drop because surely thats £70-80 worth?" Not really, Sony seem to think that the shops are still charging £425 for the PS3 when most are bundling it with games for £399 already, as you can get a pad for £25 on the net easily enough the "value pack" works out at MORE than you can get the contents for now.

el_hermoso
el_hermoso

does the price of the controller and +1 game compensate for a price drop because surely thats £70-80 worth?

TTDog
TTDog

Just shows how far away he is from reality if he thinks anyone pays 4.99 for a hamburger.

rivertrolls
rivertrolls

in other words, we wont drop the price cos i like having big bags of money every time i get payed

haloj
haloj

Lets all hope its a working PS2 to USB adaptor so that Guitar Hero can finally be played.

m0thr4
m0thr4

Apple seem to be able to price their products more fairly in the UK. Basic iMac costs £577 in the UK before tax ($1,175) Basic iMac costs $999 in the US before tax. Not great, but it's better than paying $850 (£425) for a PS3.

m0thr4
m0thr4

"But so is a McDonald's hamburger. You can buy a hamburger here for $4.99, or for £4.99 in the UK. That's just how it is." Either this joker has never visited the UK or he's never visted McDonald's. A Quarterpounder with cheese costs £1.99 in the UK, which is $4.05.

makingmusic476
makingmusic476

"Possibly a peripheral." Sounds like a Rumble SIxaxis to me.

brucies_bubbles
brucies_bubbles

Blah blah is all I read. Another muppet getting paid too much. Who gives a rats backside to a new peripheral. Probably a wireless Gecon gun for Time Crisis. Woop de do

dunnowhathuh
dunnowhathuh

Uhhh, even if the price of the PS3 was quoted without GST (Aussie equivalent of the VAT), we'd still be paying more then the Americans do. This also means PAL nations will be paying more for a crappier version of the thing. Plus, people like me who don't give a rat's ass about Fall of Man or MotorStorm wouldn't be getting much of a deal. I wish 3rd party developers like Konami and Square-Enix would take their flagship titles and go multiplatform. Seems unlikely though, Konami's already stated MGS is staying and the chances of FFXIII (the actual one, not one of the spinoffs) jumping ship is unlikely.

desolation00
desolation00

I'm as much for sticking things up European folks butts as the next American, but this just doesn't seem like the kind of news you want to put out when you need to get fans and developers excited about your console.

Irve
Irve

yes that's right .. justify your ridiculously high price in the UK by saying "McDonnalds overcharge too" ... wow ... well that's ok then !! $600 PS3 + VAT is $705 yet we pay $850 .... Hmmm .. value !!!

Worcha
Worcha

For European people it will actually total cheaper just to order the PS3 from US, even with the shipment its cheaper. Atleast looking at the prices here in Finland. I'm just glad I have wealthy relatives that already bought me the console, but still I'm kinda pissed off at Sonys new policy to buttf**k Europe as much as they can.