Interview: Microsoft's Peter Moore
You're asking me to tell you I'm going to drop the price? We had a price drop on Monday when Sony announced their price. We obviously don't talk about price drops, and I can't think of any good reason right now that we would drop the price even further from the delta between what we're offering and what our competitor's are currently offering.
And when Nintendo announces a price that is lower than the Xbox 360 -- which is the expectation -- than, by that logic, you've suffered a price increase.
You could put it that way. It's a price increase if the consumer doesn't see the difference between the experiences. I would posit that the consumer right now would be hard pressed to find the price delta between an Xbox 360 and all it has to offer, as we currently stand here today, and the PlayStation 3, and what it promises to offer.
You're not often talking about Nintendo as a competitor ...
I talk about Nintendo every day. They are a competitor, but I think they're in a different space. They have spectacular first-party intellectual property that is timeless, that is built around fun, it's character-based in many instances, it's iterations of great franchises that have gone for decades, but it's primarily youth-based. They're also doing, with the Wii controller, which eventually I'll go and get my hands on, things that are innovative that, from the moment I saw them in Tokyo, I was quoted that day as saying that I loved the innovation and that has stayed with me forever, and I don't back down from that, but I think we're in different spaces as two different companies that can certainly coexist and complement each other.
My point would be that I can see exactly where the value proposition and the positioning of the Nintendo Wii; from who it's made for, what the price is, what would be attractive, to which demographic, on a global basis. I think we've made it clear about we are where we are, what you're getting for your $299 or $399, what the value proposition is, titles like Gears of War, Xbox Live Marketplace. Growing our reach on a global basis. In the middle, it's not clear to me, and maybe I need to take a breather and read this weekend what the value proposition is, potentially I read that Blu-ray is worth the $100 to $200 to $300 and I get very confused when Cell technology is a consumer value proposition. And I ask you guys, what does that do for me as a consumer?
From the game demos we've seen so far, and from the people we've asked, there seems to be a visual parity so they're not yet seeing what this processor is doing for the graphics of the games. But this isn't necessarily a fair comparison since you're now on the second wave of titles while they're just now getting used to developing for that processor. It might be years before we're able to see a difference. Maybe a year or year and a half from now, who's going to be the first to twenty million?
I'd like to think we'd be the first. Let's say we get to the 10 million [mark] ... they won't sell 20 million in the 12 months, it just doesn't happen. If we maintain our commitment to Xbox Live, which we will do, we've built up Live Anywhere, Vista that supports the platform, the content pipeline flow that I can see in 2007 / 2008 -- and in some instances now starting to see things that we're putting up past 2009 -- all of that comes into fruition of the quality levels I believe our third-party partners and my first party studios are doing, we have the price advantage. We globalize our strategy ... we bring China online eventually. Something's gone badly wrong if it's not at the Xbox 360.