Going to start typing this out. It's very long, so it's probably going to take awhile and several updates. Mods, just lock the thread if it falls under the copyright violation post. Any typos are mine.
Jack Tretton isn't worried about the PS3's negative press. Sony Computer Entertainment America's new president and CEO has a clear message for everyone: Just wait and see. Armed with our own tough questions (and a few zingers from our intrepid readers), we ask him to defend the PS3's troubled debut, map out its path to future success, and comment on the overall state of the gaming industry.
Jack Tretton joined Sony Computer Entertainment America (SCEA) at its inception in 1995 as director of sales and was around for the launch of every PlayStation platform. He was promoted to president and CEO of SCEA in November of 2006. He is responsible for day-to-day management of operations, licensing, business development, marketing, sales, and cheering for the New England Patriots.
EGM: In all these years of covering this industry, we've only really seen one other system launch that had this much negativity surrounding it: the Sega Saturn. What happened?
Jack Tretton: The problem we have... It's society in general. We've been the undisputed winner for over a decade now, and people keep waiting for us to slip up, and we haven't, so people try to create stories that aren't there. The reality is, by ever measurement-and I would challenge you to come up with some negative ones-the PlayStation 3 was the most successful launch we've ever had.
EGM: How are you measuring this success?
JT: We got a lot of press at (videogame trade show) E3 two years before PS3 launched. People said, "Wow, great presentation...really loved the press conference." That's the press' opinion. The press declares that our press event was positive.
  As we moved towards launch, as consumers started to get their hands on the device and read about what could do, they got very, very excited about it, and that culminated on November 17. When you could bet people across North America at 20,000 retail locations camping out trying to get their hands on a PS3, then you obviously have something that's got a tremendous amount of consumer interest, and that happened.
EGM: Well, let's talk about that for a second, because, from our unscientific studies, it seemed that about 50 percent of those people in line were there to make a quick buck on eBay. And now we're seeing a lot more units on store shelves.
JT: Really?
EGM: Yeah.
JT: If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it. I can get any retail buyer on teh phone with you and get them to verify that there's not a single retail location in America where there's a PlayStation 3 on the shelf for sale. They've all been sold in a matter of minutes. (Editor's note: This interview took place in early January 2007.)
EGM: But we called 18 random retailers, including Best Buy and EB Games, and half of them had PS3s in stock...some had as many as 20 in the store. So you can buy them now if you wanted.
JT: We've shipped more than 1 million PS3 units to North American customer sin the first 43 days since launch. I am not sitting in the store to know when they got put on shelves or if a salesperson is giving you accurate information, but if only nine of the 18 stores you contacted had supplies, that seems to be a clear indications that sales continue to be outstanding.
  And if people are (camping) out to buy our machines to sell them on eBay, and successfully sold them at an extremely large profit, I don't think you'd find a company in the world that'd say, "Yeah that is pretty depressing. Not only did people (camp) out for them, they resold them at a $2,500 profit overnight-yeah, I'm pretty disappointed with our launch." It's hard for me to see the glass half-empty in that.
EGM: But why is the general vibe surrounding your launch so negative this time around? Regular gamers seem disappointed. Time Magazine even called it one of the big busts of 2006.
JT: Time magazine...I did an interview with Time magazine-the guy did his first interview ever on the games industry, touched his first machine two days before that, so I would argue that Time magazine my not be as plugged-in to the consumer or the gamer as your magazine is. All I can talk to is the people that we've attempted to sell PlayStation 3s to, and we've attempted to sell PlayStations 3s to a million people, and they've all bought 'em as quickly as we can get them out to them.
  But because we're in that leadership position, there are a lot of expectations thrust upon us, and some of them are a little unrealistic. If we failed and we were a distant third in the platform race, people would have a kind of a warm spot in their hearts for the good old days of PlayStation, and they'd actually root for us to get back on top. But I don't know if we want to pay the price to get that kind of (love).
  I think in time we'll be able to migrate the fast majority of the audience we've established with PlayStation 2 to PlayStation 3. Until I see an indication from the consumers that it's not happened, I'll look at what gets written on the press for just what it is: an attempt to try to create headlines and sell newspapers.
EGM: A lot of gamers feel the launch lineup, including Resistance: Fall of Man, is a bit lacking...either uninspiring or too similar to what's currently offered elsewhere.
JT: We're very proud of our launch lineup and feel it stacks up well against all other platform launches, including our own for PS2 and PS1. I would encourage you to take a look back at the debuts of of all the past consoles to compare launch lineups. Resistance: Fall of Man was our best reviewed title and the number-one-selling game on the platform, so I am not sure why you would say it was lacking.
  We have published thousands of great games for all our PlayStation platforms over the years, selling billions of units. That won't suddenly change for the PS3. You can expect a steady flow of exceptional titles for the PS3 for years to come.
EGM: You told everyone, "We offer everything that Xbox Live does...the big differentiating factor is we're not charging you." OK, where to begin... There are several features that you don't offer right now that Xbox 360 does offer, such as cross-game messaging, background downloading, leaderboards, chat across all games...
JT: (The PlayStation Network) is in its first 60 days, and it's not ultimately where we'd like to get it. But it is free, and I think it's compelling, and it'll get better. We're very mindful of what consumers want. Now, if it's important enough for you to pay to get those features, then that's, I guess,a compelling argument for why you've signed up for Xbox Live service. But I still think we have a very robust online experience for PlayStation 3, and we'll continue to add features. Our hope (is) that we'll be able to add those features and continue to do it for free.
EGM: So do you see a rough timeline for when you can legitimately and honestly say, "We are now literally doing everything that Xbox Live is doing, but for free"?
JT: I think we'll look to evolve our online efforts, but I don't know that we've necessarily held up to the Xbox Live experience as the be-all end-all of where we want to be. We'll have features that they won't have; they may have features that we won't have. But I couldn't give you a timelineon a feature-by-feature basis.
EGM: That leads to what Sony CEO Howard Stringer once said...he admitted that the price of the PlayStation 3 is very high, but what we're really paying for is potential. Why can't we pay $600 for something that's worth that price right off the bat?
JT: What have you historically paid or would look to pay? Let's say $299 because that's what you paid for the PS2 when it came out or because that's what the low-end 360 costs. OK, if we're asking you to pay $600 fo rthe high-end PS3, I would point out a couple of things. Historically our platforms have staying power. Not three years, not five years, but 10 years. So are you making an investment for the next 45 days, the next year, the next five years, 10 years? Because that would have a little bit of determination as far as the value.
  I understand your point about, OK, the potential is there, but what's there day one? I would say that the PS3 has the best gaming experience of any platform that's ever shipped day one. (You're getting) the combination of great gaming, free online play, Blu-ray movie playback, being able to go online and surf the internet, the ability to download your pictures, download your videos, rip your music to it...and that's all stuff that I as a consumer experienced firsthand. If you want the ultimate gaming experience and you see value in all those other experiences, all of a sudden 599 bucks doesn't sound like a whole lot of money.
EGM: Out of all the things you just stated, only Blu-ray and free online are your real advantages. You can do all those other things on the Xbox 360...for $200 less.
JT: GOod point, but let me give you one differentiating factor: the PlayStation brand. What does PlayStation mean? PlayStation means you could have bought a PlayStation back in 1995, and it had software support and was selling tremendously well until 2005, and it'd still be selling today, but we stopped manufacturing the hardware. And then PlayStation 2 came out, and that sold 110 million units, and it's still the best-selling (console) seven holiday seasons later in 2007, and that had backwards compatibility with the original PlayStation.
  Let's say I went out and bought (a competing) system. How many of those machines lasted five years? None of them. How many of those machines still have great software support? None of them. So I may be making an incremental investment if those other features I just talked about are not unique to PS3, it's a brand that has staying power and has proved itself. Until we let the consumers down, that's going to be a strategic advantage for us. Hopefully we never will.
EGM: You boast about having a high-end machine, with 1080p high-definition output, and yet you don't include the video cables to take advantage of that. You include very low-end cables, in fact. What gives?
JT: The statistics I've read say that 38 percent of the TVs that were sold this year were high-def TVs. To me that says 62 percent were not high-def. There's a fairly high cost of goods to putting a component in the box that may or may not be used. We're providing the best value we can for consumers. The cables that we put in teh box will get the PS3 up and running, but if you want to optimize it, you'll need additional cables-it depends on what kind of setup you have.
EGM: What happened to your previously announced plans of having games run on two side-by-side widescreen HDTVs? It seems kind of impractical, but you guys brought it up.
JT: To be honest with you, I don't know the answer to that one. I don't recall teh statement, and I don't know what the status of it is. It's probably just fell of the radar as a, "Do we really need to do this?" thing. But to all the consumers who have their two HDTVs lined up ready to roll, our apologies...to both of them. (laughs)
EGM: Sony has said that the rumble feature was left out of the Sixaxis controller due to cost, not legal issues. The company who licenses the technology, Immersion, whom you've had legal problems with, told us that in a short period of time they've figured out three easy ways to include that technology with the Sixaxis controller, and it costs no more than the rumble in the PS2 DualShock 2 controller.
JT: We sold millions of units of hardwire with a controller standard that did not have vibration features in it, and we've sold millions with it. I've played a lot of games that had a vibration feature, and it personally wasn't all that compelling to me. We feel that vibration is not part of our future. If there is interest in a vibration feature, I'm sure there will be a numbe of manufactureres that will come out with peripheral controllers for PS3 that have vibration in them.
EGM: MotorStorm looks great, but it doesn't really look anything like the original video that you showed a couple of years ago to represent the gameplay. What is the purpose of misleading the public like that? Aren't you setting consumers up for disappointment later?
JT: Well, I guess that's a matter of opinion. I feel it looks identical and actually personally commented that it delivers on the promise of what we showed two years earlier. also, that was a prelook at a press conference. It wasn't shown to consumers; we didn't market that footage. We showed what the machine could do, and I think MotorStorm does and will deliver on that promise. The consumer will be the ultimate judge, and that's who we're beholden to.
EGM: Does that mean you expect Killzone 2 to end up looking as good as what you showed two years ago, too?
JT: I think Killzone looks great, from what I've seen of it. It'll be impressive.
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