Microsoft EU: "Blu Ray Reminds Us Of Betamax"

[JTK]

http://service.spiegel.de/cache/inte...411855,00.html

INTERVIEW WITH XBOX'S EUROPEAN MANAGER

"Blu Ray Reminds us of Betamax"

Chris Lewis is the Microsoft executive in charge of the European market for the company's Xbox gaming consoles. In an interview with SPIEGEL ONLINE, he makes digs at competitor Sony, he laments the trouble his company has had with the Xbox 360 in Japan and discusses the tastes of German gamers.

SPIEGEL ONLINE: How many Xbox 360s have been sold so far world-wide?

Chris Lewis: By the end of June we will have sold between 4.5 and 5.5 million units worldwide. We were in 19 countries when we launched, we're already in 30. We'll have 80 high-definition games on the market, including games downloaded from our online marketplace "Arcade," by the end of June. It's great that Europe was right up there with the United States and Japan for launch. Europe is the most critical geography to our worldwide success.

SPIEGEL ONLINE: The market you're probably least happy about is Japan. In the first weeks of 2006 more PS2s and Gamecubes were being sold there than Xbox 360s.

Lewis: It's a tough marketplace for us. It's critical for us to get out there with the right games. We're making steady progress, but it's tough. We are making sure that we have the right content, the right people, the right marketing in Japan.

SPIEGEL ONLINE: Sony's French management recently announced -- and then retracted -- a price point of about €600 for the PS3 in Europe. Would Sony have a chance with a price that high?

Lewis: We don't want to get, nor are we, distracted by what they announce or don't announce. We both know that what they say may not become reality. It's interesting, but from our point of view we're focused on what we're doing. I don't really care when they launch. I'm confident that we're on a good journey. The rhythm we're dancing to is our own. The consumers are voting with their wallets. We have the next generation console, it's here now, in high definition, with great content. Let's wait and see what actually comes through.

SPIEGEL ONLINE: But the PS3 will contain a Blu-ray DVD-player -- which might actually attract customers ...

Lewis: Blu-ray right now reminds us of another technology from Sony: Betamax. A bit like VHS -- we think that HD DVD is the format that consumers, film studios and publishers will embrace. As you're mentioning the cost of Blu-ray -- we think it's about giving consumers choice, we think it's about not necessarily asking them to pay over the odds for a technology that, at the moment, is unproven. It's an interesting bet to play -- we're watching what goes on, but I think we're offering a broader, more flexible choice that doesn't burden the consumer with a cost element that may be wasted.

SPIEGEL ONLINE: Is the HD-DVD-drive for the Xbox 360 still in the pipeline?

Lewis: Absolutely, yes. We'll say a little bit more about it at E3. It will give people access to HD DVD.

SPIEGEL ONLINE: But the 360 doesn't have an HDMI-Interface -- so you won't actually be able to watch any HD DVD Movies on it because the obligatory copy protection mechanisms are missing.

Lewis: All I can say to you is -- there are interesting developments in the pipeline. We will make sure that the HD-DVD-peripheral device will meet all the requirements for consumers to enjoy high-definition DVD playback.

SPIEGEL ONLINE: Meaning, you will be able to watch Hollywood movies in HD through your Xbox?

Lewis: Yes.

SPIEGEL ONLINE: So the drive will have its own interface?

Lewis: You will hear a lot more about that question at E3.

SPIEGEL ONLINE: Some Web sites have published images from a Microsoft brochure allegedly handed out at the recent Game Developers Conference, images of a camera similar to Sony's EyeToy. Almost simultaneously, Sony has announced that the PS3 will feature videoblogging functionality. Are you planning the same for your online service Xbox Live?

Lewis: Again, we're not making any announcements at this stage. All I can say is "watch this space."

SPIEGEL ONLINE: Eyetoy is very successful in Europe and Japan, and so is Nintendos DS, the "Buzz"-button-controllers for the PS2, etc. People seem to enjoy different modes of interacting with games than the classic controllers -- which Nintendo is banking on with the Revolution console. Has Microsoft missed an important development there?

Lewis: I agree with the statement that people have a strong appetite to work with peripheral-based gaming in the way you've just described. We're aware of that and we'll make the right developments to capitalize on that desire. It's important for us to appeal to all types of gaming genres, family groups, younger players, older players, men and women. Our investment in the types of areas that you're talking about will be critical for our success.

SPIEGEL ONLINE: Can you give me a rough estimate on how many people actually do log onto Xbox Live with the 360?

Lewis: With the first Xbox, about 10 percent of customers logged onto the network. With Xbox 360 about 50 percent are connected to Xbox live. Ten-million pieces of content like trailers, game demos, music videos and Xbox Live Arcade titles have been downloaded from the online marketplace since launch. That's a faster level of download than iTunes had when it launched. That shows how central online gaming is to Xbox and how enthusiastic people are about participating in that. And the whole online entertainment thing is not just about games. It's about music -- we've just announced an exclusive partnership with Epic Records for example.

SPIEGEL ONLINE: You've just bought Lionhead development studios. Will Peter "Populous" Molyneux stay on board? After all, he's already left his own company once before after it was bought by Electronic Arts.

Lewis: Peter loves working with us. We've worked with him for some time already. He's going to remain working at the head office here in Guilford as head of Lionhead studios and he's as exited about it as we are.


SPIEGEL ONLINE: Is this move -- after having bought studios like Rare ("Goldeneye", "Kameo") and Bungie ("Halo") -- a step towards securing exclusive content for the Xbox 360 -- in other words -- are you learning from Nintendos restrictive licensing policy?

Lewis: Great, exclusive content is critical for us to win. One of the key lessons we're learning all the time. That appeal is different in different parts of Europe. The German market has slightly different tastes to the market in the UK or the Spanish market. It's important for us to map content in the right way.

SPIEGEL ONLINE: What's Microsoft's view of the German gaming population?

Lewis: Clever fun is right up there in terms of priorities. We do very well with our strategy game franchise "Age of Empires" there. You've got a huge, enthusiastic following for that genre. We are very specific about understanding what's important in each marketplace, and Germany's a great example of that.

Interview conducted by Christian Stöcker.

Now you get an idea where the lies and propoganda on certain forums comes from, as if there was ever any doubt.



Ok Chris, I get that they are the competition, but let's not say things we can't take back. Let's not write checks that you're not willing to cash.

Isn't this cute?

Sony should shoot back with a "Remember Windows ME? Yeah, we don't either..."


Finally, I will concede that Blu-ray does indeed have one striking parallel to Betamax:

It reminds me of Betamax as well, since it's a superior format and is being criticized by idiots looking to make a quick buck instead of siding with consumers.

At the head of this pack is, of course, Microsoft, followed by an ever more pitiful and desperate Toshiba and RCA/Thompson, who wouldn't know quality if it bit them in the ass.

HD-DVD wouldn't even be here today were it not for Microsoft. It would never have survived the debacles of IFA 2005 or CES 2006, and rightfully so.


Also, Betamax and Bluray are just better names than VHS and HD-DVD.

And again: What does Microsoft even know about home theater?