Blu-ray and Downloadables
When I talk about choice, this is what I mean. We offer both Blu-ray and a way to consume content without a disk.
The entire industry is supporting Blu-ray; retail and the studios are all aligning themselves behind this format. Its mission is critical to all these big retail companies, to the studios and to us. There’s a momentum that can’t be stopped. The big DVD business is being replaced by Blu-ray as the world moves towards high-definition. It’s going to be ubiquitous just as DVDs are ubiquitous.
This isn’t an argument against downloadable content, as some seem to argue. PlayStation offers both downloadable content and Blu-ray, built in. That’s a choice consumers want. We’ve got you covered if you’re a downloader, and we’ve got you covered if you want to have that collectible.
In addition, we’re offering Standard Definition as well as High Definition, and you can take content with you on PSP.
Games
Choice is part of the value proposition and it is something that is thread through all parts of our business model. It’s thread through our games, which are not just mono-experiences, but a variety of content-types from Little Big Planet to Gran Turismo to Metal Gear to Resistance 2.
Blu-ray, just to complete the circle, adds choice through our game offerings, because it offers the opportunity to create the biggest games. Literally, the biggest blockbusters can only be found on the PS3.
And, by the way, we’re also offering choice through smaller games on PSN via cool, creative little garage companies.
That’s just another example of how the Sony PlayStation model is about choice. We’re more open then some of our other competitors from a network standpoint. We are attracting that creativity from smaller developers. In a way it’s almost like the 16-bit days, when five guys in a garage could create something amazing, without having to invest heavily. Those games offer yet more choice to the consumer.
PSN’s Digital Lifestyle
A part of this array of choice is informing the consumer of what’s on offer. We’ve got games, Blu-ray, PlayStation Network but also digital media opportunities that are above and beyond just games and movies; music, photos and more.
That’s the value proposition; the array of choice and the services that are available through PSN, which, by the way, are free. We’re not forcing them to pay a subscription model - buy the content if you want it, rent it if you want it, or don’t buy it, don’t rent it. It’s really up to the consumer.
For Sony, it’s a part of our DNA to offer this value proposition to the consumer. That’s one of the reasons why I am excited about an 80 Gig machine with dual shock control for $399. It allows people to begin centralizing their behavior, in the living room where it belongs, where the fidelity and audio systems are there to show it all off.
Consumers are investing in big monitors and sound systems because they want comfort as a part of their entertainment experiences in the home. PlayStation 3 is a response to desire for a more personal experience. We have some impressive the assets including Blu-ray, downloadable service, media options, games.
The Future
Our ten year vision has been to anticipate and accommodate this demand, and to move with it, to future-proof ourselves with enough firmware update planning so that we have the ability to grow in front of the consumer. PS3 is the perfect example of forward thinking, of ignoring the notion of planned obsolescence. We recognize that the industry can’t go through that kind of trauma of three or four years whenever there’s a new system and development has to relearn things.
The brilliance of PS3 is that it’s not a dead, dumb terminal like other machines. We can throw layers of firmware into that box and always be contemporary with technology. We can reflect and respond to how people are using entertainment.
There is also another kind of choice, which is there for the development community. The technology, the cell processor, the horsepower under that hood, allows us to believe with confidence that developers are just starting to scratch the surface of what PS3 can do. Third parties are only just getting their arms around the technology of the PS3. For me, that translates into games that look and play differently, that offer more and more as we go forwards, without having to take a step back, while everyone relearns a new platform.
First Party Exclusives
In the next few years, you’re going to start to see us separate from the herd. Some of the other platforms are going to look very dated because their life spans are so much shorter than ours.
And we’re also offering more first-party exclusives. It’s a major flaw in some of our competitors that they don’t have the development resources to showcase on a global basis the diversity and the creativity of a development team that’s a thousand strong.
What that means is a huge resource of talent that’s thinking about ways to showcase the technology, who pride themselves on knowing the technology better than anyone, and eking out every last ounce of creative value.
If you’re a competitor I’ve got bad news for you because we’ve got some absolute blockbusters that are in the works, some of them new IP, some of them existing IP, that we’re building specifically for the PS3
From a competitive standpoint our competitors are going to have a tougher road now then even in 2008. But for PlayStation 3 consumers, it means more quality and more choice.