Q&A with Sony U.S. games chief Jack Tretton, extended version

Dean Takahashi and Troy Wolverton of San Jose Mercury News did a Q&A with Jack Tretton, the president and CEO of Sony Computer Entertainment America in Foster City. Here is an extended version of what they are running in the newspaper. This is a long interview with many direct, tough questions and exclusive answers. Some of the topics include:

• Tretton's view of how the year have gone for the PS2, PSP and PS3.

• His response to the suggestions that it's been a disastrous year for Sony to go "from no. 1 in the console business to no. 3 in the next generation consoles," and the predictions that the Wii has won this generation.

• His response to the comments that the PS3 is "getting wiped out in Japan, losing share in Europe, and behind in North America [and] worldwide," and being outsold by Wii five-to-one.

• His comments on the on-going format war between Blu-ray and HD DVD, and Sony's history of losing format wars.

• How much he thinks the $400 price and Wii shortage are going to help Sony against Microsoft and Nintendo this season.

• His response to Activision CEO's comments that the Xbox 360 and PS3 ought to go down to $199 by next year to compete with the Wii.

• Sony's sales projection for the PS2, PSP and PS3 for this fiscal year.

• His thoughts on how different events like E3 and GDC have gone for Sony in the past year.

• An update on the Home initiative.

• His thoughts on big PlayStation titles that slipped this year.

• If he thinks Sony has made a better launch decision compared to Microsoft, which did gain from the first-mover advantage.

• His response to the speculations that Sony went to third-party developers and asked them to stick with Sony, and that developers would characterize Sony as being arrogant in the past.

• What Sony is doing to retain developers from moving to the Wii.

• What he thinks will affect market shares from this point on.

• How Sony plans to close the gap between the PlayStation Network and Xbox Live.

• If he thinks consoles are taking customers and MMOs away from the PC and taking over the living room.

[TANOD]

PROOF

A: Sure. We expect to sell 33 million pieces of hardware across the three platforms. And that breaks out to 12 million PS 2s, 11 million PS 3s, and 10 million PlayStation Portables, and then we don’t break out software, but our forecast is 250 million units of software across those three platforms.

Q: And are those worldwide numbers, and that’s shipping numbers, is that right?

A: Worldwide numbers, and they’re sales, not shipment numbers.

Q: OK, but sales meaning that’s how many you get into consumers’ hands? Or does that mean you consider it a sale when it goes to a retailer?

A: We consider it a sale when it goes to a consumer.

Q: And that is for March 31?

A: That is correct.

Q: So Jack, that’s not Christmas numbers, that’s year-end numbers.

A: That’s correct. By the end of our fiscal, March 31, ‘08.

[Meus Renaissance]

Well Sony have always maintained the figures they release in this context have always been SOLD to customers. Not shipped, not sold to retailers, which brings an interesting perspective to the whole industry as we don't know if Microsoft or Nintendo do similar when announcing their figures.

Great interview anyway.

[ktchong]

For Nintendo Wii, units shipped = units sold

BUT...

Nintendo is actually selling "rain checks" for Wii, so their units sold are actually more than units shipped.

[Darkiewonder]

even with the raincheck?

I mean, it would only make sense if they people HAVE the Wii in hand rather than a slip of paper. because what if they get 2 million "raincheck" but won't have them completely distributed until the end of 2008 but in their fiscal year report they count those 2 millions as being sold? ;o but hey, it's still be sold.

I want my paper receipt now lawlz.

[Meus Renaissance]

I don't doubt that, but what I mean, is this company policy or a consequence/result of the unprecedented demand?

[Liar]

I can't believe your eating the bullshit that comes out this fools mouth. This idiot is a liar and anyone that would beleive anything this guy says should kill themselves.

[Kain81]

that they have a ultra secret game like Final Fantasy 7 or something like that. If this come true than Sony would sell more than 13 mio. units in his fisical Year 2007.
I would say one thing to this Rumor Final Fantasy 7 for Playstation 3: A Hope? No...a CHANCE!!!

[whoelse]

So home beta will be Q1 of next year... :(

[Meus Renaissance]

Yeah I can't believe it. Home Beta confirmed to be first quarter for 2008. I think Sony always knew this would take time but had to announce something to get the media buzzing about the platform. But I'm personally not fussed, when I see it I'll judge it on first impressions so they must get this right.

[PimpHandHappy]

all those questions sound very gloom and doom just like all other Sony related storys

all the proof you need that the media is always looking for the negative when it comes to the PS3

ok im going to read it

[whoelse]

The first few questions turns into a mini argument.

[Real Gambler]

No matter how much they hate the PS3 (it's not the first time such type of "news" is taken from that BLOG), this article would never have been printed in a newspaper. Any editor would have killed that story on the spot because the newspaper would loose all credibility.

On the other side, everything is allowed in a blog. So, it's kind of sad when a "reporter" use is newspaper title, to get an interview with a president and CEO of a company, just to ask such biased questions.

Luckily, Tretton is awesome at answering those stupid questions. Again, he did pretty well. It's still sad some people can hate a console that much.

[PimpHandHappy]

and yea

that guy doing the interview sounds like a 360 polesitter

Jack is a smart man thou and no MS crony can match his kungfu of words

[mboojigga]

They always do when they are questions needing answers you don't seem to like. It isn't fair it isn't fair. Too much whining for real on a console nobody here should have blind allegiance for. It is not that serious.

[ChefDejon]

just got burned

Q: And what did you think of Bobby Kottick’s comments at this conference, where he said that Microsoft and Sony really ought to get on board with the lower price and maybe by next year go down to $199 if they really want to compete with the Wii.

A: Well, I think from an unrealistic standpoint, I’m never surprised by that, because a software manufacturer may not be concerned whether a hardware manufacturer is successful or whether they’re profitable. But I think they should be, because without the hardware manufacturer, the software manufacturer has nothing to publish on. But, you know, I’m surprised by it, because I would never venture to suggest what software publishers should price their software at. So I don’t think it’s appropriate for them to suggest what hardware should be priced at.

Q: I guess what he’s calling for is maybe a more nimble reaction to the Wii’s success.

A: I don’t know, maybe he should design a platform

[ktchong]

Developers are right when they say Sony was "arrogant" in the past.

In fact, Sony still is.

The proof is in the pudding. It's interesting that the arrogant jackass does not know that he's arrogant.

Activision is now the largest and most powerful developer in the world. Sony should be sucking up to Activision and not be so arrogant when it comes to dealing with Activision CEO, because if Activision plays hardball, the PS3 will suffer.

[bruiser81]

Why would they play hardball? From a business standpoint that wouldn't make sense. Sure COD4 sold 1.5 mil on the 360 and around 700k (to date on the PS3). But had is been an exclusive game to 360, they would be 700K shorter. In those terms COD4 was very profitable for the PS3, especially with half the userbase of the 360. When it comes to business what Jack said wont have any impact what so ever.

[ktchong]

Developers are abandoning Sony and the PS3 because they were offended by Sony's arrogance in the past.

When the PS2 was the king, the developers had to put up with Sony's arrogance - but they remember the arrogance and the way they were treated, and they have no love for Sony. So when Sony lost its lead, they immediately turned their back on Sony. And now Sony have to "plead" with those developers to stick around.

Now, if Sony had treated them nicer in the past, they would have stuck around and helped out. It's like how Bungie said "we are still loyal to Microsoft" or how BioWare CEO said "we appreciate what Microsoft have done for us... they have added tremendous value to our company." You hear them say things like that, and you know Bungie and BioWare would stick around to help out Microsoft (as much as they can) even if Xbox is in trouble.

Like it or not, business relationships DO count for something. I have hoped that Sony would learn from the the PS3 lesson, and learn to be humble -- but from what I've read from Tretton, apparently they still do not get it. Perhaps Sony needs to fail some more so they can get the lesson into their head.

[bruiser81]

Who has abandoned sony? I cant think of one who actually abandoned sony. The only thing they did was make games for other systems most to the 360, and duh guess why they did that!It was the only system out. Others tries to ride the hype of the wii (monster hunter) and look how it turning out for them. The only thing selling on the wii are there first party titles. And if your logic was the case why didn't they just put DMC4 on the 360, the answer is simple because the know the ps3 is and will be very viable in the future. All trenton is saying "i dont tell you how to run your business so dont tell me how to run mine". No company should let another dictate to them how to run their business. I didnt hear you jumping on MS when they chose to have such a tight grip on how Live is run. SOny cant sink themselves financially for the sake of developers.

Another thing SE has stuck with sony even through its turbulent start along with Konami, Namco, Insomniac, Nauty Dog, ect

[Sevir04]

so this interviewer said that bluray is loosing. and that sony wont win with bluray... LOL!!! this guy was one negative horse. still it was great Mr. Trentton chose his words perfectly and said what he said. at certain points when the guy tried to pull his dooms day opinions over the brand, trentten just had to switch it up and put him back into perspective.. Complete owning.

[bruiser81]

@ roundpeg: MS cant really afford to be arrogant because until this gen they havnt done anything so they really cant be. But if they win this gen do you really think they will remain humble?

[Xbox is the BEST]

Jack Tretton LOL
I renember an interview earlier in the year with EGM he was saying if the interviewer can find a PS#3 anywhere in America he will pay him $1,200 on the spot that they are sold out. So the interviewer did a random call to stores and guess what? They all had PS#3 in the stores.
Sh1t if Sony was paying my bills I would be saying Xbox sucks.

[derek]

Lol, people are ready to call this thing for HD-DVD? Either the guy doesn't know what's really going on or he is being purposefully ignorant in order to maintain his whole "Sony is doomed" theme throughout the interview. Either way it was a stupid line of questioning.

[gamesblow]

Jack was spittin' venom here, folks. lalalahahahahahaha... that was a great interview and jack handled every question with a flawless swagger. Awesome! Atleast Jack acknowledges his competition... Unlike Miyamoto "mr. I never head of R&C, is it a Pc game??" > what a joke...

[Danja]

Quote from the interview:

"The United States is extremely important, but the worldwide market is what really determines platform success. And if you look at the success of the PlayStation platform in North America, we’re really proud of that, but if you look at the success on a worldwide basis, it’s just not even close."

Take notes xbots this is what PS3 owners have been saying all along..

[gamesblow]

I particuarly loved when he said

"I think companies are happy to be running their own and not everyone else's"

That made the reviewer change his whole tone in text, I thought. Jack is awesome.

[Danja]

The interviewer is totally biased dude just the manner of how the questions were asked showed un-professionalism...I only kept reading because wanted to see what Jack would say..and he answered every question perfectly

BTW I see you got back Bubble #5...^_^

[Nameless]

I wonder why we havent heard from Phil Harrison lately. Is he in hiding because he promised a Home Beta for everyone & now its not happening ? Thats probably it & at for once Jack did not make himself & Sony look like an ass with the whole Backwards Compatibility mess. But Sony probably has Jack on a Super Leash now & is reviewing what Jack says.

[40cal]

Q: But I guess some outside folks might view this year as a kind of disastrous one for Sony in respects of, as far as going from no. 1 in the console business to no. 3 in the next generation consoles.

A: I guess the way that I would keep score, and you know, again, you’ll have to blame my math teachers in school if this doesn’t make sense, but if we have 67 percent growth over last year in our revenue, and if 45% of all software sold is on our three platforms, I’ll take that kind of disaster all year long.

All and all this was a great read. The interviewer made me laugh with the Blu-ray, HDDVD statment. LOL What did he say? HDDVD who? Blu-ray has got this one in the bag. And it looks like SCE is planning on selling more PS2s than PS3 at this point in time. Seems like a great plan to me. Getting millions of more people on the PS2 will get millions more on the PS3 as the years go on and the price comes down.

[Ikanago]

Regardless of the PS3 subject matter, I feel that the interviewer is clearly trying to slant the questions towards the negative and not employ objective phrasing. He (or She) will always follow up an answer with stuff like, "But really if you consider..." or "But I guess some people would say..."

Maybe the interviewer is just trying to play devil's advocate...but it certainly seems like they want to paint everything in the negative.

This site should try for a it more unbiased professionalism in their future interviews of industry people.

[Coke-a-Cola]

...

[Jamaicangmr]

I actually read the whole interview and i have to say Mr. Tretton i commend you on very professional responses to the interviewers clear attempts to undermind you.

I really don't get why the media wont learn to put aside their bias and remain professional in their questions. It was good interview but in sections like the Blu-ray vs HD DVD questions he just seemed to have wanted to curve the interview into a hold different direction.

Great Job Mr. Tretton.

[Liar]

Who are the 7 out of 8 major studios? Neither Paramount or Universal support Blu-ray.

[eddierivera]

when it comes down to it,,, all the devs are gonna be kissing ps3's but, because not only has the xbox gone as far as it could graphically,, the ps3 has only done half of what it can do,,, and when the ps3 starts coming out with games like gran turismo and metal gear, the devs are gonna crap their pants. i didnt wanna go off subject, but people in here are talking bout wii's being number one,,, dude, the wii is a toy compared to the ps3,, thats why its being sold the way it is,, its christmas,,, im not saying its a bad system,,, and from a business point of view its a good investment,, but if you wanna talk about how much better a system is,,, think about how gorgeous a mario game would be on the ps3 or xbox? preferably on the ps3,,, think about it, even if i had both systems,, wich i do,, i would rather get it on the ps3. Its cheaper, and kids love it,, i tried the component for the wii and there is no obvious differance between 480i or 480p. Even a major developer said the wii is just 2 gamecubes tapped up together,,,, i love it though,, but not more than my ps3,,

Also i wanna get back on topic here,, the guy who interviewed jack was a total xbox fan boy,, and i cant believe a guy would put up false figures in front of jacks face like the way he did,, it was a total insult and i would have gratefully kicked the crap out of that guy for even trying to confront jack like this. Jack is sony co. and this guy acts like jack is a retard. Its a once in a lifetime oppourtunity to talk to someone of this magnitude and he wants to praise xbox in jacks face? There is no way that guy should even have that job anymore, jesus,, i cant believe someone would take a job like that for granted,,, and to top it off he was lying to jack straight to his face about figures and what not. Im so pissed about it, im keeping myself from writing stuff that could possibly get me arrested,,,, im so hateful towards that guy,,,, its like someone messing with your family,,,

[PimpHandHappy]

that is your problem dude! You want dev's to abandon Sony bet yet none has. You know why that is? Its called track record

[Mr Tretton]

If Sony treats 3rd parties like crap, then why have Insomniac stayed exclusive through 3 gens with Sony? (Contrary to belief, Insomniac is not a Sony 1st party company. They are an independent 3rd party who out of choice, only work for Sony.)

They've stated they could make a game for MS or Nintendo if they wanted to, but, "Sony has been very good to us."

[Skerj]

Ahh that interview was awesome, Jacky boy seems to have grown into his position quite well. Very professional as well, he didn't resort to slagging the competition like I've seen in the past. I especially liked when Dean tried to bring up the BluRay thing and got shut down everytime with facts causing him change up. Jack's right though, when you look at the past the PS3 is doing better than the past 3 Sony systems did at the very least from a content standpoint. PS1 had a crappy library for the first year, so did the PS2.

The PSP actually had a pretty solid gaming repertoire but it was advertised wrong so people didn't take it seriously as a gaming machine then. And aside from the PSP and PS3 I've never bought a Sony system within the first year. Now I have like 10 BR PS3 games and 9 PSN titles, with 3 more being bought this week. 2007 was decent for everyone, 2008 is going to be the showstopper.