I think you are all still missing his point. It's useful to remember the context he's coming from - for example the folks at Sony Europe as early as PSOne wanted to allow users to create their own content - live DJs, etc.. Is it fun, art, lifestyle, or entertainment, or all of the above? Those such as Phil way up in the stratospheric echelons of a multinational consumer electronics giant tend to have meetings with other monstrous conglomerates such as cell phone, broadband, tv, media companies, etc. These people are used to taking the long view of things to come, and what they see is a broad spectrum of activities that "video games" is going to be merely one part of. Obvious non-game examples - using your cell phone to check where the nearest place to eat is or perhaps the first truly interactive real-time simulation of your neighbourhood that shows you your bus arriving outside so you can hop aboard as it rolls up... Anyway at some point soon someone is going to release a "video game" that doesn't fall neatly under any conventional category of "simulation", "entertainment" or "education" and we'll all be saying of course, we all knew this was coming, what's the big deal. Maybe Afrika is going to be that? lol no idea. Then there are of course there's the whole 'online communities' thing which is still in its pre-infancy...
Might also be worth remembering that Harrison represents a company called Sony *Computer Entertainment*, who have a history of referring to 'digital interactive content' and other such vague terms intended to embrace as wide a scope as possible. He specifically said his issue is that our "industry" is labeled "video games" - in other words, he sees the total endeavour as more than just games, and that the "Play"Station is a platform capable of delivering more experiences than the simple definition of "playing games". Phil may be opinionated, he may be saying something that is hard to comprehend, but he's NOT stupid. The way I look at it, even if he is only referring to video games, one might draw the analogy of films - is Schindler's List a "fun" film? Is the medium of film merely "entertainment" and nothing more? Most would think not.