E3: David Reeves Talks PS3
The Euro bundle, the new PSP and the fight to be market leader.
At a special E3 event this evening, Sony Europe boss David Reeves announced a new PS3 bundle for Europe. Comprised of a console, two games and a second Sixaxis controller, it will cost GBP 425 / EUR 599 - the same price as the standalone machine previously retailed for.
Following the announcement, Eurogamer sat down with Reeves to find out more about the decision not to do what Sony America did and introduce a straight price cut - plus the new PSP, future plans and who's going to win the next-gen console battle.
Eurogamer: Now you've made the announcement about the PS3 bundle for Europe, what kind of reaction are you expecting?
David Reeves: I think people will say to us, 'This is really good for the summer, what are you going to do in October?'. We think that we've offered a lot of value to keep the momentum going until the big titles come out. Then we'll look at doing something else, but for the moment I think it's the right move for us.
Eurogamer: How concerned are you about possible criticisms that you should have given European consumers what Sony America gave the US; the option to pay a lower price?
David Reeves: Well, they're not really are they, because what the US are offering from the 1st of August is a USD 599 version with one game. All they're doing is taking their stock they've got at the moment of the 60GB model, marking the price down and it will all be gone by the end of July.

The recently announced Starter Pack PS3 bundle.
Eurogamer: So once it's sold out, that will be the end of the USD 499, 60GB model then?
David Reeves: In America, yes.
Eurogamer: Why not offer the 80GB model in Europe?
David Reeves: The difference between 60GB and 80GB is not really necessary. The difference in cost between a 60 and 80 is just Euro sense; it's nothing, because the cost of memory is so small.
Probably we could have gone for 80GB, but does it really make any difference? We just know that we get a better supply on the 60GB than we will on the 80GB. So we chose to continue with the 60GB until we find that we can get something better, maybe lower cost. It just didn't seem necessary to us.
Eurogamer: But if as you say there's no difference between the 60GB and 80GB, is Sony America making the right decision in offering it?
David Reeves: The difference is that the 60GB we have now has about 88 per cent backwards compatibility. The 60GB they had had 100 per cent backwards compatibility. They felt that by going down from 100 to 88, for example, that they'd have to add something in - and that's what they did.
That was their decision. We just felt that we didn't want to complicate things; we wanted to have one model, and we've had one model - we've done very well with it. Now we'll add value and we'll think about what we'll do closer to Christmas.

The 80GB PS3 for the US, responsible for the 60GB price cut to USD 499.
Eurogamer: But you're still asking people to commit GBP 425 to a games console. Isn't there a problem with the perception that that's an awful lot of money to shell out?
David Reeves: It is, but surprisingly, people are paying that amount of money for it. Now they'll get two games and an extra controller as well. It's not just a games machine as you know - you can play Blu-ray movies, you can download games from the network, you can browse the Internet and you can play music on it.
Eurogamer: What about the PSP? You've made it smaller and lighter, but isn't the real problem that there aren't the games for it?
David Reeves: Yes. It's setting itself up. It needed to be lighter and slimmer to make it portable. To solve the problem - if there is a problem with PSP - we need to have better and more original games.
Not only third parties but internally. Phil's studios are working not only on PSP games, we're also thinking of moving some of the stuff we have on the Network to PSP - things like Calling All Cars. We may remake it for PSP.
Eurogamer: Why not add some of the other things gamers have been asking for, like a built-in hard drive?
David Reeves: We looked at them and they were too expensive. It might be we can look at a hard drive later, because hard drive prices now are relatively inexpensive. But by putting a hard drive in now you add weight as well. I think it's definitely possible later, yes.
Eurogamer: What did you think of Sony's E3 press conference this year?
David Reeves: I wasn't here; I arrived this afternoon and I'm leaving tomorrow. I've heard reports that it was a bit humbler, with more humility than last year, which I think was needed. And that it was quite slick, that it was focusing on games... So it seems to have been fairly well received. But it's not for me to judge, is it?
Eurogamer: Was that humbler approach taken because you think Sony has appeared arrogant in the past?
David Reeves: I think they have. Not deliberately, but at E3 last year and maybe the year before, the presentations they did to a European and a Japanese perspective - yes. To an American perspective - no, because the difference in cultures is you have to go, 'Ra-ra, I'm the best.'
We in Europe, and especially the Japanese, don't necessarily accept that. You have to say, 'We're doing our best, but we're not the best.'
Eurogamer: So you'll have missed the Microsoft conference as well... Peter Moore seemed to be saying they're in a tight race with the Wii, while PS3 is lagging behind. What's your perspective on that?
David Reeves: Globally, I can't really comment. I would say that in the UK, Xbox 360 is doing okay. I would say in Continental Europe it's about dead. In Japan it's dead. I think it's doing very well in the US.
Wii is doing very well. Hats off to them; not only have they done well, they've got back in stock. They're marketing the console and the games extremely well. Two years ago the industry was writing them off, but they've come back. We owe a debt to Nintendo for keeping the industry going in the last couple of years; they're the ones who have kept it going.

The new PSP design, smaller and lighter.
Eurogamer: Would you agree that Sony is no longer the market leader?
David Reeves: I don't think it's to do with market leadership, it's to do with growth. If we are to look back in five years' time, what we have to say is we have to double this industry in five years. It's not necessarily who's the market leader.
I think it will be cyclical. It's the same with Adidas, Converse, Puma and Nike; they all bring out new models, but in the end they have such store presence and so much marketing they have trebled that industry in the last eight years. That's what we have to do.
We've now got to appeal to families and to older people; that's where the growth is going to come, broader franchises. They're not going to be all Killzones, they're not going to be all God of Wars or Metal Gear Solids. They're going to be LittleBigPlanets, Calling All Cars, localised SingStar versions. We're doing a Bollywood version of SingStar; we'll probably do one in Russian as well.
Eurogamer: Microsoft placed a big emphasis at this year's E3 on titles that are out this year, whereas yours featured more about titles due out in the longer term future, and Peter Moore said it's about winning this holiday. How are you going to compete?
David Reeves: I honestly don't think that just having the games on Xbox 360 is enough. I know it's nice to focus on one year, but he said the same last year - 'We're going to win the holiday season.' But they didn't; they missed that opportunity.
I don't want to criticise them, but they can't say the same again. PlayStation 3, you will see, will be far and away the winner when you look at it by March '08. They really, really will. It's something that is going to be a slow burner, and suddenly it's like a tsunami; it will just overtake you.
Eurogamer: What will cause that tipping point?
David Reeves: You can't take a scattergun approach of putting all the games out. The Metal Gear Solids and the GT franchises - you don't have to put them out in November and December. You can put them out in January, March, April, whenever you like. A big game will move the platform.
In fact having a window of silence sometimes in those months is very good - that's what we've found. Metal Gear Solid always does well in March.

The Star Wars Battlefront PSP pack. Complete with new game and fancy PSP design with Darth Vader's head on the back.
Eurogamer: As you say you've got Metal Gear Solid and Gran Turismo, and then Microsoft's got the likes of Halo. Then there's this murkiness around titles like GTA IV, where extra content is coming out on 360 - and Microsoft is saying 360 is the only place where you can get the full GTA IV experience. Why didn't you get that content?
David Reeves: It's just a question of money. If Microsoft wants to pay USD 50 million just for that... Then I would say they're quite desperate. But as Jack Tretton said, we're really not in the business any more of buying exclusivity. We're more in the business of developing, from Phil Harrison's area, new IPs. We want to move on.
It's too easy to look at and say, 'We must get the GTA franchise.' By the time you've got it the world's moved on, and they'll be talking about some other game. I've got children who are 11 to 15 years old, and those kids are looking forward and not necessarily looking back.
They're the kids who are going to be buying it - the new franchises, but not necessarily the old ones that we signed up to E3 four or five years ago. They're not going to drive the market in the future; it's going to be the new ones.
Eurogamer: Where do you see PlayStation, and the industry in general, in five years' time?
David Reeves: It's going to be a lot more network based, to start with. I have absolutely no doubt about that. That will bring in people who are more PC-oriented, people who are more music-oriented and downloading through iPod.
I think there will be much more focus on shorter games, episodic games, instant gratification; less emphasis on a hard console or a hard laptop. The concept of a console eventually will disappear.
Eurogamer: Are you still looking at PlayStation 3 as a ten year machine?
David Reeves: Yes, we are. We think with the capacity in the hard drive to update the firmware, that's certainly possible. We're in year eight of PlayStation 2 and I think we can still get to ten years on PlayStation 3.
That doesn't mean to say that something else might come out. I don't think it will be a PlayStation 4; it will be something completely different. But something will come out before we get to ten years on PlayStation 3.
Eurogamer: So let's say it's not a physical machine, that physical media goes away - where will that leave retailers?
David Reeves: Retail, as they have in the music industry, will be left with something - but not everything they want... I think eventually they will struggle. Some countries like France are adjusting. Certainly in Japan they are adjusting. Unless UK retailers move in that direction, they are going to struggle.
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Comments (97) Latest comment 5 years ago
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Fair enough.
/waits til October
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Wait...where did October come from.
Hmm....
/Dr Evil's Evil look.
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David Reeves: It is, but surprisingly, people are paying that amount of money for it
"surprisingly" ??? So even HE is surprised Euro consumers pay these prices ?
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The interview seems brief and not too critical in comparison to Moore's Q&A though.
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Albeit spoiled by the 'tsunami' comment.
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Wii is doing very well. Hats off "
truth
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Tsunami for god's sake. Did he not watch the news last New Year's?
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Hands up who said "This is really good for the summer"
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B-
Must do better.
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October price cut/GTA bundle makes sense.
On a personal note I really dont like this man.
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He did sound like a cunt, just a clever cunt.
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He said continental Europe, and MS's figures are sold to retail i.e shipped.
Right now, they just sound incredibly arrogant. 'We'll take over by March 08, oh yes!' - Erm, Halo 3? Bioshock? PGR4? Mass Effect? GTAIV Exclusive content?
What a coincidence all the titles Sony showed at E3 press conference are slated to come out before end of fiscal year that is March 2008.
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"We'll make more games" is all well and good, but dismissing old franchises is a pretty weak effort. I know the only things holding me to the intention to get a PS3 are the Metal Gear Solid and Final Fantasy franchises (ok, and Fumito Ueda).
I also think this is a missed opportunity to cut the price. The Americans are getting a $499 60GB model versus our £425 so how does Sony bundling a bit of a old stock with the console (a proportion of which is already being bundled with the console by some retailers for £399) compensate for such a massive price difference?
Thhe annoying thing is, I really want to want one; to get excited by having a new console, but right now Sony are making it very hard for me to think buying a PS3 now is a worthwhile idea.
Roll on October?
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You don't think he said "€uro Cents" rather than "Euro sense"? Hmm?
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They injected humility in this years E3 as a calculated move, and it took the sting out of Sony's arrogant persona for sure. No more 'Next gen starts when we say so,' or having to work harder for the PS3 from the Kuturagi era thank god.
The guys is still a muppet, but then show me one of these execs who isn't a muppet.
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I loved when asked to justify the price of the ps3 he said "you can play music on it" - you can play music cd's wow thats incredible!
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because Sony wants it to be that way
not for any other reason "
and?
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Or it wouldn't make any sense to price cut now without at least trying to sell their own software first.
I've got a nagging feeling that Sony is going to do an extreme price cut of at least $150.
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exactly. what a prat. games are kind of the main thing about it surely? Its a fucking expensive music player otherwise.
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I thought this was a pretty hardcore question: "Was that humbler approach taken because you think Sony has appeared arrogant in the past?"
@mattigan
True, thats due to people buying less games (in general) over the summer though.
@Xiphos
"the PS2 has been around for 8 years for one reason
because Sony wants it to be that way
not for any other reason"
Erm. Sorry I think I missed your point? Don't you think any game company wouldn't want to milk any console for as long as possible?
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100GB?
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So what did you do for Europeans when you introduced it here? :/
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I am surprised they did not ask if the cushion he was sitting on was comfy enough and just how many sugars in his coffee he would like.
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"The difference in cost between a 60 and 80 is just Euro sense"
You don't think he said "€uro Cents" rather than "Euro sense"? Hmm?
Yeah, that would make more cents.
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80gb isn't really necessary, unless you're in the States.
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I made the decision to swap my 360 for a PS3 solely on the upcoming games for both systems. Not having enough time to play everything that comes out on one system let alone three, I opted for the system with the most games that appealed to me. Now I've got one I've been nothing but impressed by it. It's totally silent unlike the lawn mower it's replaced and the build quality is superb. I hadn't even considered it as a blu-ray player despite being told that the jump in quality from standard dvd was astonishing. I've now got several blu-ray discs and they look utterly amazing. Judging by the sales and rental figures for blu-ray discs there are considerable numbers who are either buying the PS3 as a blu-ray player as well as a games console or, like me , are discovering how good it actually is for that purpose.
Maybe the European buyer is looking slightly more long term...
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Still absolutely no reason for me to buy a PS3 yet though.
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And again:
LOL.
Any chance that next time a Sony dude spouts total BS you may wish to take him up on it?
"360 didn't win last Xmas"
"GT and MGS, we don't buy exclusives anymore we focus on new IP..."
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I'm off to give MS and Nintendo more of my money.
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Just think about the extra content of GTA, and off-set this against signing the Media Molecule guys to do Little Big Planet. This is one of the bigger reasons why I like Sony more than I like Microsoft as a games company.
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rofl. Maybe they should increase their price?
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Sure he doesn't come across as super-likable, and if anything, he shows too much "business" talk, fragmentation between the sony departments, and is quite possibly living in DE-NILE (by March 08, MS will have too human, alan wake & fable 2), but he's not as bad as harrison or trenton.
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It's an interesting observation that the US price cut is, in reality, nothing of the sort. But then we all know that the various Sony Factions don't get on at all...
Oh and the PS3 bundle sounds very similar to the equivalent 360 pack from last year.
2 games plus extra controller. (Although I think that I got the Game version which had the 2nd game - didn't the 360 pack just come with PGR3?)
But yeah... one of the better Sony Bloke interviews I've read.
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He gave some good answers to some quite prickly questions, but I still won't buy a PS3 until the price actually DROPS! EU gets the shaft from Sony AGAIN!
What is it about these companies that they don't seem to understand or even care that Europe is actually a very important market for them? A bundle on the back of news that the US is getting a price-cut is a slap in the face for Euro customers, no other way to see it - however Sony try to spin it, we're getting done over again by them.
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I allready have a PS3 but agree completely.
The US price drop is not a real price drop either - the 60GB is being outphased and when those are sold out, only the $600 80GB model is on the US marked. Clever marketing but fubar IMO.
However when comparing the new EU bundle with the US 80GB model, I belive the EU bundle is the best "deal".
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So in the US they have a choice of 80GB HDD version to compensate for losing 22% backward compatibility.
Or
A 60GB unit with almost 100% backward compatibility for a lower price.
What does Europe get... shafted!!
He basically admitted that we'll get an 80GB version as soon as supply of the 2.5" drives improves, and that there will be another announcement regarding the price (or 'value') of the PS3 in October. That really makes me want to run out and stump up the money for the fabulous 'Starter pack'!
Hopefully whatever Sony does in October it involves a price cut rather than some other crappy bundle deal.
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LOL nice work!!
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If you were to come at it from the perspective of price drop and then having to buy the games separately, it would probably work out to be more, admittedly you do have more of a range of games to choose.
Me personally, Im waiting for MGS to come out and hopefully there will be a price drop on the console, not a bundle.
if all else fails I will probably have to take the kutaragi plan of action....
get a job.
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Gee thanks, why didnt they do that or something for us??
I might just swap out my PS3 HDD for a larger one. Its just a standard latop HDD isnt it?
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Just what I was thinking! This guy really is an arse - where did they get him from?
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The US 'Price Cut' is just marketing spin, and in Europe we're getting a much better deal. There will be plenty of customers who have been waiting for the PS3 to represent better value for money and with the number of quality games starting to pick up, I'm sure they'll shift a lot more units as a result of this announcement.
Personally, I'm more excited about the October hint than anything Nintendo or Microsoft have announced this E3.
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and secondly that in america they get a large hard drive to compensate for the decrease in backward compatibility aswell as a bundled game and what do we get?? a higher price
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Yeah, out of The Idiot, The Sneering Homonculous or The Robot I'd take the Idiot. At least when he blows the lid of whatever scam Sony's doing it's more hilarious than enraging.
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Sony would do better if they didn't speak to the press, ever.
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'Look, we can't reduce the price of the PS3 for at least a year because it's just costing us too much to make and we haven't currently got an easy way to cost reduce it. But we have some great games coming out and it does play Blu Rays so it still good value.'
At the moment they are shooting themselves in the foot by giving short term price cuts or promising or alluding to price cuts which don't happen. This pisses off current owners and potential buyers in equal measure. If everyone knew it was going to stay at the same price for at least a year then ironically you'd probably get more people buying the damned thing.
It's the uncertainty and the mismanagement that's killing everyone's enthusiasm for it at the moment.
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Thing is why did microsoft have to pay 50 million for that content, would it be because sony offered 40 million for it - quite likely me thinks. The only reason for it to be worth 50 million is if someone else was prepared to pay loads for it too, and there is only one potential other bidder.
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I don't care that ms have paid 50 million, I just want to play good large long-lasting games. MS arn't my company but they obviously feel they can spend that money and still keep producing first party titles.
/runs through thread waving his "I love Peter Moore" undercrackers above his head.
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Hang on though in the interview he says of the PS3 "and you can play music on it."
HOW? Do you hit it, or is there somewhere you can blow into it?
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Or they might say, "Wake me up when september ends".
Sorry, couldn't resist
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Instant bastard, right?
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David Reeves: We looked at them and they were too expensive. It might be we can look at a hard drive later, because hard drive prices now are relatively inexpensive. But by putting a hard drive in now you add weight as well. I think it's definitely possible later, yes.
Translation: Yeah but no but yeah cause what happened is hard drives is too expensive but relatively inexpensive but they're too heavy but shut up cause we'll put one in anyway soon probably.
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It's not his JOB to describe technical minutae, dammit! It's his job to destroy any goodwill Sony may have built up anywhere in the Western world. At least I hope it is.
Mrs Reeves had better get the hug + hot mug of cocoa this evening ready I think.
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Eurogamer: But you're still asking people to commit GBP 425 to a games console. Isn't there a problem with the perception that that's an awful lot of money to shell out?
David Reeves: It is, but surprisingly, people are paying that amount of money for it
"surprisingly" ??? So even HE is surprised Euro consumers pay these prices ?
Exactly what I thought when reading it!
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There was no way the GTA content was going to be an exclusive to anyone without someone paying for it("you want us to do more downloadable content than we'd planned and only release it on one platform?... but arent we forgetting the Money we'd loose out on?"
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I really don't think it's a case of Sony not having the money to buy exclusives, more that it doesn't see the need. Microsoft paid Rockstar $50 million for the exclusive GTA4 content which, although a lot, is still not much for a company like Sony which makes billions each year.
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Im also far from convinced that Sony is or has ever been the leading 1st party developer OR publisher(Nintendo whoops them and MS could easily match the quantity to go along with the IMO already higher quality)... just as Im not buying "everybody is excited about Killzone2"(I doubt that but keep telling us every interview you get Sony) are we forgetting the first fell short critically and fanancially of what they hoped for... I havent, you have to deliver the good game before you can sell sequels on hype.
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And despite the problems Sony may currently be having with the PS3, the PSP and PS3 remain very profitable for it and, overall, Sony is doing better in both consumer and movie businesses so it definitely has the money if it wants to spend it. Make no mistake, if it wanted to give $50 million to Rockstar it would have.
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Is Singstar the only one on that list thats "In-house"? Theres a difference between publishing and developing In-house... Ive yet to see these in-house games from the "biggest in-house dev team"(which I think is incorrect... didnt they lay people off?) seriously Nintendo gets that title. Second as software company, one whose worked with developers long before Sony have I do beleive MS could outdo them... they are playing it differently... it was 3rd party that made Playstation what it was... to argue against that would be ridiculous now people are turning around and saying 3rd party doesnt matter? BIG mistake ask Sega and Nintendo, they know damn well they need 3rd party support. I still beleive its a case of it being MS' idea and them being bitter about it not being able to buy into it(shareholders are watching them like hawks now... your not trying to tell me things are all peachy in Sony land are you?)
Anyway I really should have said what I came here to say and left because this could go back and forth all day with the subjective nature of it... it was alot tamer than MS' interview as usual, but Im guessing Ellie didnt do the other one and she did ask one almost bold question.
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Although the 360 may have the most third-party exclusives at the moment, with the exception of the new content for GTA4, Sony may have the most important in the shape of MGS4 and FFXIII. Games like Bioshock look fantastic but they're not system sellers.
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MGS4 will shift consoles but I dont think it's the blockbuster it once was anymore I think most of the ones who are waiting for it already have a PS3 anyway(some might wait a little longer and see if it goes to 360 too), could it really sell the PS3 to people who havent been interersted so far?
Bioshock, Mass Effect, Halo3... it doesnt even stop there though theres too many potential AAA titles for the 360 not to be considered as having the best line-up this christmas, thats what sells consoles. If they all play as good as they look then there will be too much buzz around the 360 for people not to notice. Time will tell, I think MS will outsell PS3 in hardware by quite a margin this year and whoop them in software sales to a greater degree(attach rates, charts ect).
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Soar grapes from wankers!!
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Sony though have got that same amount of in-house devs in Europe ALONE, as well as a bit over 10 in other territories. Nintendo also got more in-house devs and many, many second party developers.
Still I have to agree that quality is more important than quantity and many of Sony's first-party devs lack the first one.
On the topic of exclusives:
I think that FFXIII might be really important for Sony. Not in Europe and not in the US - but in Japan. This is maybe the only chance they have to recover over there if they want to close the gap between them and Nintendo.
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