GC: This price cut is very welcome but surely its an admission that the Xbox One is currently not selling as well as youd hoped?
HE: No, I dont think so. For us this is about giving UK gamers the best value that we can. We think that that starts with the announcement of this new price point, at 399. It continues with the inclusion of the hottest game of this new generation, in Titanfall, which is now included in the box at no additional cost.
And I would also say that this has been our most successful Xbox launch ever in the UK. I think that we can already see that both platforms are commercially successful, thats great for the industry, but were only a few months into a generation that is going to last for many years to come.
GC: No one would suggest the Xbox One has been a flop, its no Wii U, but when a console is very successful its usually sold out for months and doesnt get a price cut until years later. Clearly, thats not the situation the Xbox One is in, but why do you think that is?
HE: I just go back to my earlier point, that we just want to give the best value that we can, and with the arrival of Titanfall on March the 14th we feel now is a great time to adjust the price point, get it to 399, include Titanfall while stocks last
GC: Do you have any idea how long stocks will last? I assume theres a finite number you know youve got to give away?
HE: Yes, its a promotion that is while stocks last. What I would say is the people that want to take up this offer, I would strongly encourage them to pre-order as of today at participating retailers. But to give you a sense of order of magnitude, this is similar to what we did with the Day One consoles which youll remember came with either FIFA 14 or Forza. So expect similar volumes as that promotion.
GC: The fact that the price cut is only for the UK is interesting, as it suggests understandable concern that the Xboxs second biggest market has turned towards the PlayStation. Can you confirm that current hardware sales are 2:1 in Sonys favour?
HE: Well, you know we dont comment on UK sales figures, specifically. We dont break those down
GC: Not figures, no. But can you confirm that ratio, which seems evident even in software sales?
HE: Again, for us this has been our most successful launch ever. When I looked towards what I said we would achieve internally at this point in time were bang on track. I think 399 for an Xbox One, with the inclusion of Titanfall, plus of course Kinect, I think is a great deal for UK gamers.
GC: Id suggest that some of the Xbox Ones problems still relate back to the disastrous launch, and also the strangely aggressive attitude of most American Microsoft execs since then. They always seem adamant not to admit any fault or to even acknowledge the various U-turns. Has that been an issue, do you think?
HE: Youve spoken to me before David, and you know Ive tried to always be straight with you. I think the last chat we had, I think we said we were not happy about the decisions made on things like trading games and always-on, etc. and those have been reversed. Ive always tried to give you an honest comment on issues
GC: You have, but that only emphasises the difference between the UK side of things and the American execs.
HE: And I think the announcements were making today are another step in the right direction for gamers in the UK. Its also a good time to remind people that four months in you can trade discs on Xbox One, you can bring in any of your games and you can use the proceeds to buy a copy a copy of Titanfall.
GC: Well, quite! Im curious, did you ask for the price cut or is that something America came to you with?
HE: It doesnt really work like that, but we look at it and ask, How can we offer the best value in this country? Im responsible for the UK so I look at the UK and say, How do we get the best value into the market for our fans? And we just feel now is the right time to make the adjustment on the price point. With Titanfall coming it just seems like the perfect time to do that.
GC: Do you feel theres enough autonomy between you and the other worldwide divisions? I can certainly think of numerous situations where Nintendo and Sony have forced decisions on the UK and Europe that local execs clearly knew was a bad idea. And I realise you have to be diplomatic in answering that
HE: [laughs] I think there are examples in other areas where you can see, let me say the influence of the UK, in some of the worldwide actions that we take. If you just look at the advertising campaign that we ran, which featured Stevie Gerrard, thats clearly the influence of the UK. That was a worldwide spot that ran everywhere in the world, including the US.
I know thats not necessarily the example youre after but I think its a demonstration that says the UK has an important voice as the second biggest market in the world and I think there are examples of where we have this degree of autonomy that you refer to. I think the announcements today are another example of that.
GC: But another problem with Xbox appearing to be US-orientated is the TV and media content, which is still extremely lacking in the UK. Can you see that this will be addressed this year, or this half of the year?
HE: Were still committed to the entertainment vision that we outlined, Id say its an evolving one again being honest with you. I think, look at what weve done with Xbox 360 and how thats changed over time. I think you can expect the same with Xbox One. We know there are important partners missing, we know the BBCs not there, we know Skys not yet there. I cant give you a precise date today. I wish I could. But what I can tell you is that were working very hard with those companies to bring them to the Xbox One platform as soon as we can.
GC: Will there ever be a UK or European equivalent to the NFL deal? That cost $400 million and yet its almost meaningless outside of the US. You could get a lot of first party games financed for that amount of money
HE: Nothing that I can share with you today.
GC: I dont expect you to announce anything, but is there something of that magnitude that you know is being planned in the future?
HE: Were looking at ways to bring great entertainment experiences, great sports experiences, and great gaming experiences to the UK as soon as we possibly can.
GC: Details of this price cut leaked earlier today on ShopTo, although no-one realised it was a permanent price cut, and I noticed immediately many people were saying, Well, its good but Ill still wait until they take out Kinect. How much of a problem is that attitude to what youre trying to achieve?
HE: We said all along that we believe that Kinect is an absolutely integral part of the Xbox One experience and that remains the case.
GC: But its not though is it? In terms of core games that are out now, or have been announced its a periphery feature at most.
HE: Let me give you an example, weve seen thousands and thousands of gamer clips uploaded to our Upload Studio by the community. And the way those gameplay clips are captured, for the most part, is when someone speaks to the screen and says Xbox record that. That phrase has already become a part of Xbox vocabulary, part of gamers vocabulary. And I think its a great example of how Kinect makes the Xbox One experience even better.
GC: Do you feel Titanfall is literally the biggest game of the year? It doesnt seem likely that Halo 5 is going to be out this year, so will Titanfall still be the biggest Xbox One exclusive by the time we get to Christmas?
HE: I think Titanfall is going to be a huge game, theres no doubt about that. Usually a new console is really characterised by the launch of a new game, we saw it on the original Xbox when Halo first came out, we saw it with Xbox 360 when the Call Of Duty franchise really came to the fore with the second game, and I think Titanfall will be that type of game for the Xbox One.
Its one of those very rare breed of games that people will buy a console in order to play it. We think its going to be huge, I think it has tremendous longevity because its a multiplayer game. I cant predict whats going to be the number one seller at Christmas this early out, but Titanfall is going to be big no doubt about it.
GC: Is there something else you know about, perhaps a first party title, that you know Microsoft are going to be pushing as their big Christmas title, instead of Titanfall?
HE: Theres a number of games that weve already announced that are Microsoft-developed games that were excited about. We do have Kinect Sports Rivals, which will be a great demonstration of Kinect technology, weve got games like Project Spark which weve announced, weve got Sunset Overdrive
There are a number of first party games coming.
But I think the three hottest games of the year are Titanfall, Watch Dogs, and Destiny. And you will be able to play all three on an Xbox One, and I think theyre the three most anticipated games at this moment in time.
GC: And just quickly, is Xbox planning a big presence at GDC [Game Developers Conference] in March? I know Sony are rumoured to have some big announcements there.
HE: Were more focused on E3, from an Xbox One point of view.
GC: Thats very interesting, thanks for your time
HE: No problem, its a pleasure.