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We wrap up our day-long tribute to Sony Computer Entertainment America vice president and co-chairman Jack Tretton with the full interview transcript. Thanks again (and of course to SCEA's Peter Dille for arranging things right before Tretton was about to go on stage and introduce Ludacris).


Wired News: PlayStation 3 is a product for high-definition videophiles. Why, then, only include composite cables in the box?

Jack Tretton: Ideally, you've got to make some decisions based on cost. You have to include some things and exclude some things. If it was up to me, you'd have a high definition TV in every box. We're trying to get this perfect marriage of value and price, and [asking], where do you draw the line?

Cabling is something people are going to incorporate into your home theater system, and some people need a longer cable or a shorter cable. A lot of the cables get thrown out. It was a cost, and not a "must-have" as far as we were concerned. It was a "nice-to-have."


WN: How many $500 units vs. $600?

JT: All I can tell you is that the assumption and reception that we got from retailers is that the majority of consumers are going to want the $599 SKU. Given their choice, the expectation from retailers is that they'd prefer to get the $599. I think the majority. I couldn't give you a percentage. The number that's been kicked around has been 80%. i've got some retailers who want one hundred percent $599 SKU, and got other guys who want a lower percentage. I'd say 80% is about average.


WN: Let's say I'm a gamer who already has Xbox Live. What are the reasons that I might also want to do PlayStation 3's online service?

JT: If you're a consumer and you're buying based on online alone, I think you're in a fairly small audience. I think it would ultimately be the consumer that says, "Holy crap, did you check out that Resistance: Fall of Man, I've gotta get that," and then that is the reason why you go online. I think content drives consumers online. SOCOM was the reason we were able to build our [PlayStation 2 online] install base.

From a full featured basis, we offer everything Xbox Live does. The big differentiating factor is that we're not charging you $60 [actually $50 - CK] to sign up for the service. If you find games that are compelling to you, and you like online gaming, the good news is you buy a PS3, pick the game of your choice, go online and start gaming for free. So i think that's our biggest strategic advantage.


WN: Can software publishers charge for online gameplay?

JT: Software publishers have total freedom, and I think the other great thing is the consumer has total freedom. If you pay $60 to sign up for a service and you don't like the offerings, you've wasted $60. if you pay nothing, you pick and choose. There's so much content available to play for free before you've invested any additional dollars.


WN: Will there be an analog to Xbox Live's Achievements or Gamerscore?

JT: We didn't mention that, but it is our intention that we would have it, although I think it would be game-centric. It's very difficult to draw analogies from your success on SOCOM with your success on Madden. Madden players care about peoples' success on Madden. So the publisher will have the flexibility to have a robust ranking system on a game-by-game basis. So the intention right now is not to have something that is pan-platform.


WN: Will Sony have this in their first-party titles?

JT: We do intend to do that with our stuff.


WN: Does it have a name?

JT: No, not at this point.


WN: And it's not in the launch titles.

JT: No, not to my knowledge. There will be 19 online games available on day one, but I'm not aware of whether or not that service will be available in any of those.


WN: There was a price drop in Japan for PS3, but not in the US. Aren't you feeling some price pressure from Microsoft?

JT: We don't feel like there's any price pressure at all. The realities are, the Xbox 360 is selling at a slower rate than the original Xbox was. The xbox 360 is being outsold by PlayStation 2, just like the original Xbox was. We feel that there's tremendous interest in the PS3, and the biggest challenge we have is coming up with available product, initially. And we don't feel that price is going to affect our ability to sell our initial qualities.


WN: If downloadable games are tied to an account, what stops five people from sharing one account and all the games?

JT: Nothing, and I think that's a great advantage. You can send that content to four other friends for that initial investment. We want to get the game in as many hands as possible, and it's not about a financial grab [from] consumers.


WN: Do you feel it's okay, financially, to allow this?

JT: It's short term vs. long term. We're interested in a 10-year product lifecycle and establishing it as the must-have machine for the next decade. It's not about generating profits at each and every turn, at each and every interaction with the consumer. I think that's why we went with a free service and why we have an open platform. I think that really offsets the argument that, "Wow, that's really a pricey system."


WN: Is the game download system centralized?

JT: It's on the PlayStation store, yes.


WN: Does Sony have approval authority on every third party title?

JT: We will be aware of and approve the content that is offered for sale.


WN: Does Sony get a cut of each sale?

JT: It's a similar situation to the disc-based business. [Meaning yes - CK]

Lock if old.

 

[DarienA]

Some good info in that interview.

 

[AlanHemberger]

WN: There was a price drop in Japan for PS3, but not in the US. Aren't you feeling some price pressure from Microsoft?

JT: We don't feel like there's any price pressure at all. The realities are, the Xbox 360 is selling at a slower rate than the original Xbox was. The xbox 360 is being outsold by PlayStation 2, just like the original Xbox was. We feel that there's tremendous interest in the PS3, and the biggest challenge we have is coming up with available product, initially. And we don't feel that price is going to affect our ability to sell our initial qualities.

Yeah, no.

WN: If downloadable games are tied to an account, what stops five people from sharing one account and all the games?

JT: Nothing, and I think that's a great advantage. You can send that content to four other friends for that initial investment. We want to get the game in as many hands as possible, and it's not about a financial grab [from] consumers.

that's ****ing awesome.

 

[Panajev2001a]

that's ****ing awesome.

QFT!

 

[evil ways]

WN: If downloadable games are tied to an account, what stops five people from sharing one account and all the games?

JT: Nothing, and I think that's a great advantage. You can send that content to four other friends for that initial investment. We want to get the game in as many hands as possible, and it's not about a financial grab [from] consumers.

Could this be where the whole "advertising in games" deal will be employed?

"The following stats and ranking screen is brough to you by Coke Zero...drink, drink, drink!!!"

 

[mckmas8808]

WHOLLY ****!!!!!!!!!!! AGAIN. Two good (okay this one was decent but) interviews from actually Sony execs. That's like a record or something right?

I completly 100% agree with Jack on the "giving the games to 4 other people for free" statement.

These downloadable games were never meant to make 8 guys in a room millions of dollars. They were suppose to be fun to make without the hassle of time deadlines and 10 million dollars on the line.

We gamers always wanted smaller games that were great that cost about $10. Not isn't cool that I can pay for Jaffe's game and give it to Bad_Boy or Wollan for free. And then Bad_Boy could buy Flow and give it to me for free.

This is a ****ing perfect (yes I said PERFECT) idea.

 

[Francias Castiglione]

The account sharing is no different to the 360 is it? Downloads are tied to the account, so all you would have to do is share your Gamertag info with some friends, split the costs of the MP points and download the games to each machine separately.

 

[ORANGUTAN]

JT: Nothing, and I think that's a great advantage. You can send that content to four other friends for that initial investment. We want to get the game in as many hands as possible, and it's not about a financial grab [from] consumers

This is HUGE... moochers unite

edit wait...so it's just on that account?

 

[Francias Castiglione]

This is HUGE... moochers unite

edit wait...so it's just on that account?

You have to read the question as well as the answer.

 

[ORANGUTAN]

You have to read the question as well as the answer.

 

[Zaptruder]

Question then is... what's the usage for the account?

Can only one account be signed on at once? Or is it more like only one account for each game active at once? (so you can have 5 games/friends playing with the same account at once).

 

[ORANGUTAN]

Question then is... what's the usage for the account?

Can only one account be signed on at once? Or is it more like only one account for each game active at once? (so you can have 5 games/friends playing with the same account at once).

Well you can have multiple usernames under one account...so it may be possible

 

[BenjaminBirdie]

So each account will basically be five people on five different PS3s/PSPs? And if the band breaks up they still have all your credit card info stored in their Wallet (which has been confirmed to be tied to your account info)? It's a really good idea for moochers on paper but the logistics seem a little sticky.

That being said, like I told kaching, you let me at your PS3 so I's can download nem Jet Moto II, you get first crack at the remaining four spots.

 

[Lord Error]

Hmm, I really hope there's some small misunderstanding going on, and that in reality you can actually share the game download with a friend, not share your user account details with him - that just seems too risky, unless it's all within one family.

Yeah, no.

AFAIK in the US, X360 is just now matching the old Xbox in sold units (or is slightly ahead), but worldwide I wouldn't be surprised if it's still behind.

 

[ORANGUTAN]

Hmm, I really hope there's some small misunderstanding going on, and that in reality you can actually share the game download with a friend, not share your user account details with him - that just seems too risky, unless it's all within one family.

What you're describing is basically P2P... Kazaa, Napster, etc. If Sony allowed that this would be the greatest electronics device in recent memory

 

[Goreomedy]

The share confirmation just blew my mind.

And if the band breaks up they still have all your credit card info stored in their Wallet (which has been confirmed to be tied to your account info)?

If you use a Credit Card in this instance, you're a dumbass. You can buy Sony Online Cards at retailers.

This is how you can organize it. Have 4 friends "buy" into your group by providing you the number from their $10 Sony Online cards. With your own $10 contribution, that gives you a wallet of $50. Then you can set up a name, "PS3ShareGAF69", and PM the password over to those 4 friends.

Then you guys can agree on a PSOne game download, like Jumping Flash, and download to your system. Even if only one person can be logged into an account at a time, you can still sign in and download Jumping Flash to your PSP when the account is free.

 

[Dr. Kitty Muffins]

A 10-year lifespan for the PS3?

I love that. At the price they are now selling it for, it will take that long to r each mainstream pricing.lol

But seriously, I hate short console cycles. I would love to see a 7-8 year life span this time around.

 

[BenjaminBirdie]

The share confirmation just blew my mind.



If you use a Credit Card in this instance, you're a dumbass. You can buy Sony Online Cards at retailers.

This is how you can organize it. Have 4 friends "buy" into your group by providing you the number from their $10 Sony Online cards. With your own $10 contribution, that gives you a wallet of $50. Then you can set up a name, "PS3ShareGAF69", and PM the password over to those 4 friends.

Then you guys can agree on a PSOne game download, like Jumping Flash, and download to your system. Even if only one person can be logged into an account at a time, you can still sign in and download Jumping Flash to your PSP when the account is free.

That makes sense.

 

[AlanHemberger]

AFAIK in the US, X360 is just now matching the old Xbox in sold units (or is slightly ahead), but worldwide I wouldn't be surprised if it's still behind.

For a LTD, it's still behind. But monthly, it's selling a lot better than the Xbox.

 

[sugarhigh4242]

I wouldn't be too quick to put all your downloadable content on your friend's system.

If your PS3 breaks and you've already distributed your stuff to 4 other people, then you might not be able to get it on the new unit. Unless there's a way to "deactivate" the old system.

I really appreciate this quote:

It's short term vs. long term. We're interested in a 10-year product lifecycle and establishing it as the must-have machine for the next decade. It's not about generating profits at each and every turn, at each and every interaction with the consumer. I think that's why we went with a free service and why we have an open platform. I think that really offsets the argument that, "Wow, that's really a pricey system.

But time will tell if that was corporate-speak or not.

One thing i've been hearing on all the podcasts regarding downloadable content is "if you don't buy it, they'll stop making it!". But i don't think that's really true. It doesn't cost publishers/developers very much money to add a small item as a paid download. And it only takes a couple people to buy it before its profitable. Publishers may see that as simply money left on the table if they don't do it in their games. EA is definitely looking for every oppurtunity to cash in (Tiger Wood's paid cheat codes)

But everyone in the industry needs to take a step back and look at the bad blood they are stirring up with this stuff. Even if we do pay for some microtransations, it doesn't mean we're happy about it, or that its a good value. And they may quickly find that consumers flock to games and systems where they aren't constantly being gouged for new cars, new guns, horse armor, etc. Sony's already pissed off people with the price of the PS3, and the composite cable isn't helping. They'd do well to go easy on us for a while now.

 

[Y2Kev]

So each account will basically be five people on five different PS3s/PSPs? And if the band breaks up they still have all your credit card info stored in their Wallet (which has been confirmed to be tied to your account info)? It's a really good idea for moochers on paper but the logistics seem a little sticky.

That being said, like I told kaching, you let me at your PS3 so I's can download nem Jet Moto II, you get first crack at the remaining four spots.

I am IN on that, Birdie. I want 1/5th of your delicious Jet Moto pie.

 

[rs7k]

I don't like their reasoning with the component cables. Who's gonna buy the $600 and not have component inputs on their TV?

 

[TTP]

I think the downloaded content sharing is where the Entitlements thing brought up by Panajev with that patent kicks in. You basically buy the game and then give permissions to up to 4 other users to download it (or unlock the full game if they already got the demo) for free on their machines. This is very interesting.

 

[Dahbomb]

So yeah.... who here wants to be my friend? I want to see your guyz Pokemans... I mean games.

 

[X26]

I don't really get the game sharing thing...but it seems...good?

 

[Kabuki Waq]

so after all this stuff about HD era 1080p and all that crap Jack just basically says: "eh....Hd is not really that important"

 

[Angelcurio]

A stupid question.

If i have 3 accounts on my ps3 and i dowload a game using one of them, will the other accounts be able to use the game since its already on my ps3?

 

[sugarhigh4242]

I don't like their reasoning with the component cables. Who's gonna buy the $600 and not have component inputs on their TV?

On the other hand, i would've thrown component cables away, because i have HDMI.

Composite cables, i'll use when i take the system to other people's house.

Not defending the choice, just showing how it relates to my situation.

 

[Kreuzader]

The value Sony is working to put into the PS3 is really making me reconsider the launch price as being high

 

[mckmas8808]

The value Sony is working to put into the PS3 is really making me reconsider the launch price as being high

I'm sorry care to explain that?

 

[TTP]

A stupid question.

If i have 3 accounts on my ps3 and i dowload a game using one of them, will the other accounts be able to use the game since its already on my ps3?

I think that's the point of the game sharing thing. You gotta give them permission, and then they will be "entitled" to play that game.

 

[Barry Lightning]

$200 pricedrop by xmas 07. i call it.

 

[TTP]

$200 pricedrop by xmas 07. i call it.

And no video cables AT ALL cos people throw them out anyway according to Tretton.

 

[Suikoguy]

$200 pricedrop by xmas 07. i call it.

It will all come down to sales, if sales are still good with 399/499, then expect it to stay that way though 2007. But i'd not be surprised if we see:

07 - 399/499
08 - 299/399
09 - 199/299

Keeping in mind that the "core" pack is more then viable, if you look at just the left hand side of that list of prices, it should work. The only thing that throws a wrench into my equation is the lower price in japan... so it may end up being

06 - 499/599
07 - 299/399
08 - 199/299
09 - 149/249

There are simply so many ifs and variables, its really hard to say what the price will end up being. But, in the end I think it will come down to sales.

 

[mckmas8808]

I think that's the point of the game sharing thing. You gotta give them permission, and then they will be "entitled" to play that game.

Well the game is entitled to be on 4 or 5 different "CONSOLES" not user names. So if you have your two kids on your PS3 along with you (making that 3 usernames) I'm sure all the usernames on THAT CONSOLE can play Flow without downloading it 3 different times. I mean come on guys.

The man said himself that these downloadable games are here to make devs millions of dollars.

 

[kaching]

so after all this stuff about HD era 1080p and all that crap Jack just basically says: "eh....Hd is not really that important"

No, that would be the buyer saying HD is not really that important if they're not going to bother with HD simply because a $10 cable wasn't included in the box.

 

[TTP]

Well the game is entitled to be on 4 or 5 different "CONSOLES" not user names. So if you have your two kids on your PS3 along with you (making that 3 usernames) I'm sure all the usernames on THAT CONSOLE can play Flow without downloading it 3 different times. I mean come on guys.

I dont think so. AFAIK, it doesn't work that way on 360 (different accounts don't have access to the same downloaded content stored on the system) and I don't see it being any different on PS3 (unless you share). If the accounts you are sharing the game with are on the same system, you wont be asked to download it for every account.

BTW, IIRC the Sony PSP Media Manager for PC allowed this kind of software sharing.

 

[mckmas8808]

BTW, IIRC the Sony PSP Media Manager for PC allowed this kind of software sharing.

What kind of sharing? Can you explain a little?

 

[Mrbob]

So I'm guessing this works for downloadable content too???

For example, UBI Rape time Ghost Recon 15 dollar package you can split up with 4 other people? That would be awesome.

I'm confused on this topic, and it sounds too good to be true.

 

[TTP]

What kind of sharing? Can you explain a little?

IIRC when you download the software you are given a Serial Number to type in during the installation process. Once you do that, your program is "activated". You can then send the file you downloaded to a friend and when he puts the serial number in he is sent an "activation code" via email so that he can activate the software on his PC. You can do this a given amount of times. I don't recall how many tho. I think the server tracks the number of activation codes asked upon typing a given serial number and then stops sending them when the maximum number of extra activation codes for that serial number is reached.

 

[ram]

I don't like their reasoning with the component cables. Who's gonna buy the $600 and not have component inputs on their TV?

average joe doesnt care about component and hdmi. thats the truth and yeah so he is right - even if it pisses some hardcore gamers off.

 

[Stinkles]

The 80%/20% demand would have shifted after the HDMI announcement, I would have thought.

 

[Kobun Heat]

The 80%/20% demand would have shifted after the HDMI announcement, I would have thought.

When you're a retailer and you're going to completely sell out of something, you want the version that makes you the most money.

 

[mckmas8808]

When you're a retailer and you're going to completely sell out of something, you want the version that makes you the most money.

It's based of pre-orders man. Preorders!

 

[Stinkles]

When you're a retailer and you're going to completely sell out of something, you want the version that makes you the most money.

Yeah, but they in turn seem to be basing that on consumer demand. Put it this way, I would be way less pissed at getting the tard pack now, than I would have before that announcement.

 

[Kobun Heat]

Yeah, but they in turn seem to be basing that on consumer demand. Put it this way, I would be way less pissed at getting the tard pack now, than I would have before that announcement.

It takes an instant to get consumers to make a snap decision, and an eternity to change that back. After E3, the $499 pack was universally panned; now that it's no longer a totally gimped box it's less of a boondoggle but it's hard to convince people otherwise. You're right, though: consumers (early adopters anyway) do want the $599. But retailers are all too happy to give it to them, as they no doubt make a bit more cash on the more expensive model.

 

[Safe Bet]

06 - 499/599
07 - 299/399
08 - 199/299
09 - 149/249

That's what it needs to be...

The only thing to be wary of is early-adopter discontent and stockholder squeamishness.

If you can do that and keep the lights on, go for it.