A very interesting story about Peter Moore, the history of bad blood brewing between MS and Sony, with a choice Kuturagi quote.
http://www.business2.com/b2/web/articles/print/0,17925,1122948,00.html
Some very interesting quotes in this article. Maybe Peter will respond in kind here since he claims to read GAF.
http://www.business2.com/b2/web/articles/print/0,17925,1122948,00.html
s not surprising, considering the products they sell, that executives in the videogame business like to pepper their speeches with trash-talking one-liners about rivals. But there are few opportunities for unscripted face-to-face smackdowns, so Peter Moore relishes the moment he bumped into Ken Kutaragi in a corridor at the Tokyo Games Show in September. Moore is the top marketing executive for Microsofts (MSFT) next-generation console, the Xbox 360; Kutaragi, the legendary Sony PlayStation CEO, is his archnemesis. The two shook hands, and Kutaragi invited Moore to the Sony (SNE) booth to check out the PlayStation 3 videos. Videos? Yes. The PlayStation 3 is not due out until April, and all Sony had to demo in Tokyo were noninteractive computer graphics. The Xbox 360, which launches in the United States on Nov. 22, did not have the same problem. Thank you, Ken, Moore said with a toothy grin. But come by our booth if you want to play actual videogames.
The stakes are enormous. If Moores attack makes significant inroads into PlayStations market share, he will have almost single-handedly realized Gatess vision of Microsoft as a home entertainment powerhouse. But if Kutaragi has the last laugh, then Microsoft -- already scrambling for a looming war with Google (GOOG) over the desktop -- may have an even greater rival on its hands. Its no secret that Kutaragi expects the PlayStation to one day replace the PC. For Peter, says Xbox executive J. Allard, this time its personal.
Then in 2000, Kutaragi started hyping what he called the emotion engine, the breakthrough microprocessor in PlayStation 2. He promised that it would deliver real-time graphics that would rival those of Toy Story, games that would make you cry, and DVD movie playback right out of the box. It worked: The PS2, as it was universally known, became an object of desire, and Dreamcasts momentum ground to a halt. What Kutaragi did to Sega is legendary, says Andy McNamara, editor-in-chief of Game Informer magazine. It even became a verb in videogame circles: To Dreamcast is to use the power of nothing but a dream to crush the competition.
Moore wasnt the only one smarting from the PS2s success. In the late 1990s, Gates was in talks with Kutaragi to include the Windows operating system in the PS2. But Kutaragi had long seen Gates as the most lethal threat to his empire. Bernie Stolar, a former Sony executive, remembers Kutaragi asking him as early as 1994 where he thought the nascent PlayStation consoles main competition would come from. Nintendo, Stolar guessed. Maybe Intel. Kutaragi looked him squarely in the eyes. No, Bernie, you are wrong, he said. It is Microsoft. And I will kill them.
Moore is visiting the set of the first television spot for Xbox 360, part of the largest Microsoft marketing campaign since the Rolling Stones serenaded Windows 95 with Start Me Up. Its also a spot that has the corporate marketing guys shrugging their shoulders, Moore says, sitting in a directors chair. This is about taking an industry and hauling it, by the scruff of the neck, from young teenage males playing endless hours of time-killing games and bringing it into the living room.
Moore has banned technology from the commercial. He ripped up earlier storyboards for computer-graphic-heavy ads deemed too PlayStation. Instead, the TV campaign is supposed to evoke childhood memories of playing with friends. The idea is, if you arent involved youre missing something, he says. To be cool, in other words, you have to be part of the Xbox gang.
Moore did extensive consumer research to prove that this wasnt the case with the original Xbox. In one case study, Xbox and PS2 loyalists were asked to argue in front of a judge why their systems were better. The Xbox gamers based their arguments on technology: I have 7.1 surround sound. Im immersed in this sound, this color, this beautiful world, one said. PS2 owners, meanwhile, were more laid-back: It plays games, its simple, it works, said one, slouched in his seat. Moore believes that the ardent fervor for Xbox actually put up barriers to growth. We had the hard-core but nothing else, he says.
The real danger, of course, is that the Xbox 360 wont make enough of an impact in the crucial window before the PS3 launches. And Sony has caught Microsoft off balance once already, at the E3 trade show earlier this year in Los Angeles. Just hours before the Xbox 360 press conference across town, Kutaragi nonchalantly waltzed onto a Sony Pictures soundstage and stole the show. He announced a PS3 whose specifications were more powerful than anyone watching had expected. It would be one of the first devices to feature Blu-Ray high-definition DVD playback. And contrary to Microsofts belief, Sony had been shipping kits to developers so they could get started on their games. Sony showed everyone why they are on top, says Ubisoft president Laurent Detoc. Microsofts overconfidence reminds him of an old saying in French: Dont sell the bears skin before youve killed him.
Some very interesting quotes in this article. Maybe Peter will respond in kind here since he claims to read GAF.