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A Chat With Phil Harrison

Next Generation sat down with Phil Harrison after the Sony keynote last week, and they discuss the PS3, the PlayStation Network, and Harrison's place in the company. From the article: "Q: Aren't retailers going to be slightly annoyed that they're selling this hardware for next-to-no margin, just so the software can ultimately be sold directly via downloads? A: I completely disagree with that. The software business for PlayStation 3 will continue to grow. PlayStation 2 has more software on it than PlayStation 1 - more units sold in more countries to a wider demographic of consumers. PlayStation 3 will continue to grow the market and will generate a bigger opportunity for everybody - retailers, developers, and publishers alike. So I do not accept your statement that retail is going to be in any way affected by this other than positively."

27 comments

  1. Well... by Wootzor+von+Leetenha · · Score: 1

    you can't download the hardware yet, so they should just be happy Sony's using them for anything.

    --
    My name is Wootzor von Leetenhaxor
    1. Re:Well... by bwcarty · · Score: 2, Insightful

      And there's a lot more hardware than just the base console for retailers to sell...3rd party controllers, skins, faceplates, etc. I'm sure they have a better markup than the actual consoles.

  2. Didn't exactly answer the question, did he? by SteveX · · Score: 2, Interesting

    Q: How is PS3's new distribution model going to affect retail?

    A: PS2's old distribution model was great at retail, therefore PS3's new model will also be great at retail.

    Seems like a valid question to me, but then again, I'm really looking forward to not having to stand outside EB at midnight to get the hot new game of the month. (But I'm also not looking forward to waiting a week for it to download because they don't have adequate bandwidth.. let's hope Valve's streamed release of Half-Life 2 taught the industry some lessons).

  3. "The future is unevenly distributed" by Sean0michael · · Score: 2, Informative
    "Not everybody has broadband or will have broadband for quite a while."

    Sure, but most people are going to have the Hi-Def TVs that make the blu-ray component useful. I don't have any numbers, but I would imagine more people have cable/DSL than HDTVs. That's just what I think though.

    "Clearly, you are not going to use a keynote by the head of first party studios to announce the price of PlayStation 3. I don't think anybody was surprised yesterday when I neglected to include that slide in my deck."

    Maybe not surprised, but disappointed certainly. While there may be smaller concerns for consumers right now, the biggest one (and one that will affect every consumer and their wallet) is the price. That little tidbit of news probably would have caused more articles, blogs, and rumors on the web than anything that was in the GDC keynote.

    --
    Funtime Candy Wow! - my plan for eventually conquering Japan.
  4. Gads! by BigCheese · · Score: 2, Funny

    I thought it said a chat with Phil Hartman http://en.wikipedia.org/wiki/Phil_Hartman and I pictured a seance.

    So what's this PS3 thing? Did IBM make another PC?

    --
    The obscure we see eventually. The completely obvious, it seems, takes longer. - Edward R. Murrow
    1. Re:Gads! by vishbar · · Score: 1

      So what's this PS3 thing? Did IBM make another PC?

      Heh...that comment doesn't bode well for Sony's marketing department.

      --
      Ride the skies
    2. Re:Gads! by bwcarty · · Score: 1

      Heh...that comment doesn't bode well for Sony's marketing department.

      Yeah, if I was at Sony, I'd hate to see my brand recognition amongst the dead take a nosedive.

    3. Re:Gads! by Anonymous Coward · · Score: 0

      I thought it said 'A Chat With Paris Hilton.'

    4. Re:Gads! by BigCheese · · Score: 1

      It was a joke. I know what the PS3 is. I just don't care. Since their hardware quality has gone so far downhill I just don't see myself buying a PS3.

      --
      The obscure we see eventually. The completely obvious, it seems, takes longer. - Edward R. Murrow
    5. Re:Gads! by analog_line · · Score: 1

      Yeah, I read it as Phil Harris.

      My first thought was "How the hell is he still alive?" followed quickly by "What the hell is he doing making video games?"

    6. Re:Gads! by vishbar · · Score: 1

      I know...I misread the comment at first. I'm an idiot..:P

      --
      Ride the skies
    7. Re:Gads! by BigCheese · · Score: 1

      It must be tough to have a name that close to so many others. Could be worse, his last name could be Johnston.

      Missed the "t" didn't you?

      --
      The obscure we see eventually. The completely obvious, it seems, takes longer. - Edward R. Murrow
  5. No Downloadable Games by Doytch · · Score: 2, Insightful

    I don't think Sony can afford to have much(if any) complete works distributed as digital download. Think about it, they're using this thing as a trojan horse for BluRay. How is that going to work if you can download stuff without using BluRay at all?

    1. Re:No Downloadable Games by MindStalker · · Score: 2, Insightful

      Exactly, I'm sure it will be very similar to what you see on the Xbox and Xbox360 now. Many small downloadable mini-games. But full games will still be packaged for the forseable future.

    2. Re:No Downloadable Games by Irish_Samurai · · Score: 1

      I really hope Sony makes a way for indy and hobby developers to create their own games and release them through the service. That functionality alone would guarantee my dollar.

    3. Re:No Downloadable Games by rtb61 · · Score: 1
      Naturally enough because with out a burner for the Sony "Work & Play" station, who wants to be stuck being able to play the game only on the original console. Sony obviously want to push MMO's and download additions to the MMO after the original game was purchased at a retailer.

      Although unlike xbox the Sony console is likely to offer full internet access allowing people to do everything they would normally expect to do with a computer connected to the internet and not be restricted to one self promoting site.

      --
      Chaos - everything, everywhere, everywhen
  6. PS3 vs. Rev in a nutshell by Miraba · · Score: 3, Insightful
    The software business for PlayStation 3 will continue to grow. PlayStation 2 has more software on it than PlayStation 1 - more units sold in more countries to a wider demographic of consumers. PlayStation 3 will continue to grow the market and will generate a bigger opportunity for everybody - retailers, developers, and publishers alike.

    Looks like Sony is banking on increasing market penetration. (At the price they'll be charging? Are they insane?). Nintendo says that the market is pretty much tapped out and a new market needs to be targeted in order to grow.

    (Yeah, -1 for obviousness, but I find it interesting.)

    1. Re:PS3 vs. Rev in a nutshell by ivan256 · · Score: 1

      What price is that, exactly?

      Do you have information that nobody else has and only a few dare to make-up authoritatively?

    2. Re:PS3 vs. Rev in a nutshell by Miraba · · Score: 1
      From Kutaragi himself:

      I'm aware that with all these technologies, the PS3 can't be offered at a price that's targeted towards households. I think everyone can still buy it if they wanted to... I'm not going to reveal its price today. I'm going to only say that it'll be expensive.

      Reference here.

      I don't know about you, but I don't see those comments as indicating the potential for higher market penetration. How many casual gamers are going to fork over the dough for a system that's already received a price warning?

    3. Re:PS3 vs. Rev in a nutshell by Anonymous Coward · · Score: 0

      You Xbox types love to hang on to crap like this - one off-hand statement is not something to take as truth. But, who cares, go ahead and perpetuate the misinformation. In the long run, it's not going to matter anyway. I'm just glad we'll see Microsoft out of the console space. I'm no fanboy for the PS3 or Revolution, but I really hate to see Microsoft gain marketshare. It brings joy to my heart that the 360 is failing as bad as it is.

    4. Re:PS3 vs. Rev in a nutshell by Miraba · · Score: 1
      You Xbox types love to hang on to crap like this

      Ahahahahahahaha. Thanks for the laugh.

      In order, I've owned a NES, Genesis, N64, PS1, Gamecube, and PS2. The only next-gen system I'll be buying is Nintendo's. I'll happily play the PS3 if a friend buys one, but I'm not paying more than the cost of replacing my computer's guts for the priveledge of playing the same games with prettier graphics. I haven't given MS any money since the late 1990s, and I've never picked up an XBox controller.

      I suggest you check someone's post history before attempting to troll them. I don't believe your goal was to be laughed at.

  7. dev kits by sloose · · Score: 1

    So will Nintendo be releasing updated dev kits for their older consoles? I see a lot of potential in this. Especially if Nintendo steps in and helps with the online distribution of these games.

  8. doesn't get it by Goldsmith · · Score: 1

    This guy doesn't seem to get (probably on purpose) what the interviewer was getting at. Sony's business strategy in electronics has always been to cut out as many 3rd parties as possible (much like Apple). It is obvious this is happening right now in games, and that some day not far off Sony will not be selling anything meaningful through Gamestop, having created their own distrobution channels online and with branded stores.

    That, and what kind of video game executive plays golf in the afternoons?

    1. Re:doesn't get it by Irish_Samurai · · Score: 1

      I knew this was coming the instant Sony acquired Zipper Interactive.

    2. Re:doesn't get it by elrous0 · · Score: 1
      No, he gets it. He's just dodging the question. Why piss off the retailers until you have to? Sony can just smile and tell retailers that they're going to be fine, that Sony still loves them--right up until the morning they announce they're no longer shipping out physical discs to retailers.

      -Eric

      --
      SJW: Someone who has run out of real oppression, and has to fake it.
  9. Annoyed? Who cares? by ivan256 · · Score: 1

    Aren't retailers going to be slightly annoyed that they're selling this hardware for next-to-no margin, just so the software can ultimately be sold directly via downloads?

    Game retailers have rolled over and taken it up the... well... you know.. for publishers thus far. Why should they think they won't continue to do otherwise? There isn't a single big gaming retailer that hasn't done whatever the publishers have asked out of fear that they'll go WalMart only and cut the game stores out. Places like EB and Gamestop are willing to shit on their customers to appease the random restrictions imposed by the publishers. They'll roll over for low margins too (just like they did last generation).

  10. Sony *NEVER* learns a lesson by elrous0 · · Score: 1
    Star Wars Galaxies, anyone?

    -Eric

    --
    SJW: Someone who has run out of real oppression, and has to fake it.