SCEA CEO Jack Tretton dishes: DRM is in, backwards compatibility is out, and video UMD lives on
We got a chance to sit down with Sony Computer Entertainment of America's CEO Jack Tretton, who gave us the lowdown about a few things we've had on our minds.
PS3
On backwards compatibility: Jack explained that Sony looked at how to "not take a greater hit on production cost, without losing PlayStation's heritage ... Hardware / software for backwards compat wasn't all that expensive. ... but we're selling PS2 software to PS2 customers, and selling PS3 software to PS3 consumers." Still, Jack seems to feel like it may have been the wrong move. "I would like to have had it in there, but Sony's collective strategy determined we could afford to lose it. We've now gone down that road, and we're not going back."
On DRM and the video store: As of right now, Tretton is a firm supporter of the need to DRM content on the PlayStation platforms, and Sony believes that "the drm for a song maybe isn't as important for a movie and a game... this is way too hard a business to make money in to allow people to own multiple copies for the price of one." (That's what they all say!) "I'm all for allowing an individual consumer having the freedom to do with their content what they want," but Sony has no intention of opening its video up any more than it has to.
PSP
On drive or flash storage: Sony has "definitely thought about storage on the PSP," and understands the inevitable "march towards digital content delivery device." But in terms of a drive-based PSP, they have "nothing that's imminent." (Read: don't hold your breath.)
On how downloadable video affects the already sad state of UMD: UMD "has struggled, and it wasn't handled effectively from the beginning. ... I firmly believe in a digital model" as they're rolling out, but Sony is "still going to support UMD" as a device for movies.
What's preventing PSP software sales: Three things. Title ports from PS2 games (people don't want to buy the same title twice), and the PSP's media functions. But Jack put the most emphasis on "piracy in the hundreds of thousands of units are preventing software sales. it's a problem that affects our software sales right now."
Home
On what the crap is going on with it: Part of Home's issues thus far have stemmed from "the disconnect of when Sony took Home out of the creative minds and put it the hands of business minds... but I would rather ship it two years from now with a lot of good stuff, than open it as some ghost town. We have to do a good job of populating it." For the record, that doesn't mean Home is coming out in two years -- they just want to make sure to get it right. Of course, it could be argued that the entire concept behind Home is flawed. There, we said it.
Biz
On having Kaz, former head of SCEA, running PlayStation from Tokyo: It's been a favorable situation for Jack and the US team, because Kaz understands the US market and its needs better than Kutaragi did. "He understands the challenges... there's a better understanding for our business than there's ever been. Howard Stringer has also gotten involved in the PlayStation business."
Didn't Stringer get involved because PlayStation was hemohorraging cash? "Most of what we did before didn't have a lot to do with the rest of Sony's business... but we can no longer be an island off the coast of Sony Corp." Which is to say, this time PS3's launch touched many of Sony's businesses and interests across the company.
PS3
On backwards compatibility: Jack explained that Sony looked at how to "not take a greater hit on production cost, without losing PlayStation's heritage ... Hardware / software for backwards compat wasn't all that expensive. ... but we're selling PS2 software to PS2 customers, and selling PS3 software to PS3 consumers." Still, Jack seems to feel like it may have been the wrong move. "I would like to have had it in there, but Sony's collective strategy determined we could afford to lose it. We've now gone down that road, and we're not going back."
On DRM and the video store: As of right now, Tretton is a firm supporter of the need to DRM content on the PlayStation platforms, and Sony believes that "the drm for a song maybe isn't as important for a movie and a game... this is way too hard a business to make money in to allow people to own multiple copies for the price of one." (That's what they all say!) "I'm all for allowing an individual consumer having the freedom to do with their content what they want," but Sony has no intention of opening its video up any more than it has to.
PSP
On drive or flash storage: Sony has "definitely thought about storage on the PSP," and understands the inevitable "march towards digital content delivery device." But in terms of a drive-based PSP, they have "nothing that's imminent." (Read: don't hold your breath.)
On how downloadable video affects the already sad state of UMD: UMD "has struggled, and it wasn't handled effectively from the beginning. ... I firmly believe in a digital model" as they're rolling out, but Sony is "still going to support UMD" as a device for movies.
What's preventing PSP software sales: Three things. Title ports from PS2 games (people don't want to buy the same title twice), and the PSP's media functions. But Jack put the most emphasis on "piracy in the hundreds of thousands of units are preventing software sales. it's a problem that affects our software sales right now."
Home
On what the crap is going on with it: Part of Home's issues thus far have stemmed from "the disconnect of when Sony took Home out of the creative minds and put it the hands of business minds... but I would rather ship it two years from now with a lot of good stuff, than open it as some ghost town. We have to do a good job of populating it." For the record, that doesn't mean Home is coming out in two years -- they just want to make sure to get it right. Of course, it could be argued that the entire concept behind Home is flawed. There, we said it.
Biz
On having Kaz, former head of SCEA, running PlayStation from Tokyo: It's been a favorable situation for Jack and the US team, because Kaz understands the US market and its needs better than Kutaragi did. "He understands the challenges... there's a better understanding for our business than there's ever been. Howard Stringer has also gotten involved in the PlayStation business."
Didn't Stringer get involved because PlayStation was hemohorraging cash? "Most of what we did before didn't have a lot to do with the rest of Sony's business... but we can no longer be an island off the coast of Sony Corp." Which is to say, this time PS3's launch touched many of Sony's businesses and interests across the company.
Reader Comments (Page 1 of 3)
yode @ Jul 16th 2008 3:23PM
DONT TASE ME BRO!!!
Wes Palmer @ Jul 16th 2008 6:18PM
your rating just got tased, bro
neofolklore @ Jul 17th 2008 8:24AM
in b4 dark_alex
paul @ Jul 16th 2008 3:24PM
DRM, check
no backwards compatibility, check
Keep using a BS proprietary format, check
3 very different and very acute types of FAIL from Sony. Aren't they trying to stay in business?!
Skemo @ Jul 16th 2008 3:41PM
Microsoft and Sony are both big fans of DRM, support proprietary formats, and neglect backwards compatibility - and they both make billions of dollars every year.
Its farcical to correlate these stances with profitability. If profitability was a serious concern facing these stances, then they would have tackled them long ago. I hate all of the above as much as you do, but its idealistic to think it will change anytime soon.
ShadowKain @ Jul 16th 2008 3:43PM
Agreed, lets waste time on special formats and piss Sony customers off at the same time...GENIOUS!
sk8rpro @ Jul 16th 2008 4:03PM
I hate DRM. I am even against purchasing digital files, because the physical is easier to play at a friend's place. Plus, I can use Handbrake (for personal use, of course) for making DRM-free copies for my iPod.
If I ever were to buy a digital file of a movie, and no DRM-free versions are out there, it would be iTunes. Why!? Because I can remove the DRM easily through Requiem 1.7.3.
I already detest Sony through their anti-consumer friendly approach when they put the rootkits on their CD's, and they weren't even sorry! Why should I trust what I purchase from them?
xcrunk @ Jul 16th 2008 4:18PM
I'm glad my 20GB PS3 has full BC.
Too bad I NEVER USE this feature.
james @ Jul 16th 2008 4:22PM
I understand where you are coming from, but most companies do all of thos things like Ninitendo with the DS. it uses proprietary cartridges, and doesn't even allow for a flash card slot. Most companies do this and I dont see it going away anytime soon.
tekdroid @ Jul 17th 2008 12:29AM
tell me what you'd use instead of UMD for Sony's catalogue of games on the PSP. Everyone has grand ideas of digital distribution, but they don't realise that not everyone is like them, and these people that aren't like them do hold the moneybags and do shop in bricks-n-mortar stores, and these stores are ESSENTIAL to the success of a console.
Sony *do* know that UMD is the ONLY solution for storing their games reliably and cheaply. It's the PERFECT solution and it had to be made because there simply was NOTHINIG out there that would do the job in a PORTABLE console.
Can you think of something better? Keep in mind COST of replication having to be kept at minimum.
Miguel @ Jul 16th 2008 3:24PM
No PS2 backwards compatibility...Booooooooooooooooooo
"Hardware / software for backwards compat wasn't all that expensive"
If software BC isnt that expensive just put it in!
Krush @ Jul 16th 2008 3:40PM
yep .. and to all those who said backward compatibility isn't going anywhere yesterday ....
Kiss my hairy black a$$ ...
Andy @ Jul 16th 2008 3:46PM
They said in another interview its about 30 dollars of hardware to do the partial BC of the current 80gb. Add to that the software development and its a good chunk of change. The original full hardware BC of the 60 gb was about 55 dollars (no software work needed).
So if they can take out a 30 dollar piece of hardware and cut out the software costs and redirect that towards making games or lowering the price of the console, its not entirely a bad move.
They also said they can always do a full software solution, but its expensive and time consuming, and they have many other things they would rather focus on before getting to something like that.
steve @ Jul 16th 2008 3:49PM
No PS3=more PS2 sales.
They figure if you have a big wad of cash to throw down for the unprofitable ps3, you can also give them some more for the profitable PS2. Who said corporations play nice?
steve @ Jul 16th 2008 3:52PM
durh, ment to say no ps3 backwards compatibility=more ps2 sales
Coyote @ Jul 16th 2008 4:06PM
The software compatibility was already there (albeit only about 60% compatible) but it was better than nothing and yet they trashed the whole idea. I for one have held out buying a PS3 just for this. Thanks for making up my mind to never buy one (or find the old 60Gb used) Jack.
CraigJ @ Jul 16th 2008 4:36PM
I really thought I was going to miss this feature when the Xbox 360 came out. I haven't wanted to play an original Xbox game since I got the 360, and if I really decide I want to, I can just drag it out of the closet.
Citrico @ Jul 16th 2008 7:20PM
I like the "we're selling PS2 software to PS2 customers, and selling PS3 software to PS3 consumers." But you could be selling PS2 AND PS3 software to PS3 consumers, and possibly make more money in the process.
If it costs $30/console to add in software BC, and consumers buy a few more inexpensive PS2 games above the PS3 software they've already purchased, Sony has made back the investment. PS2 games are much more likely to be impulse buys.
Jim @ Jul 17th 2008 2:11PM
@Citrico
I strongly agree with his statement that PS2 customers buy PS2 software and PS3 customers buy PS3 software. I bought both a 360 and a PS3 within 5 months of launch and I have never thought once about buying software for their predecessors. I have USED the backwards compatibility on both, but the amount I will use that BC has diminished greatly. The only games on PS2 I will want to play years down the road are GTA and MGS.
In short you said "If it costs $30 to add BC, and consumers buy a few more PS2 games Sony has made back the investment." It may only be $30/console, but at 2M units per year that's $60M. Keep in mind Sony only gets licensing fees for those PS2 sales. Let's say on average Sony gets $5 per PS2 game. To earn back that $60M for BC they would have to sell 12M PS2 games or 6 PS2 games for all 2M PS3s. If only 10% of PS3 users buy PS2 games, that goes up to 60.
So, from a financial perspective, it's very difficult to justify BC after the launch window. At launch it's easier because you justify the cost as it helps reduce barriers to entry so you can move your customers onto the new platform. It's sad BC is gone and all those classic games will be "lost in time", but hell...even Vista's causing the same issue.
fred @ Jul 16th 2008 3:25PM
i guess im causing bad software sale........if you catch my drift.
fistpittingnork @ Jul 16th 2008 3:57PM
Pardon?
sinjinn @ Jul 16th 2008 4:07PM
meaning hes pirating psp games
Ignatius @ Jul 16th 2008 3:25PM
Well gee, if you don't want to bother with backwards compatibility, I don't want to bother dumping four benjamins on your half-baked attempt at forcing me to purchase new games.
Hunts314 @ Jul 16th 2008 3:30PM
no offense but what other kinds of games would you buy for a next gen console? I know I didn't buy a 360 (well before I sold it due to RRoDs) to play regular xbox games (in fact I sold them all). Was it nice that I could if I wanted to? sure! did I ever use that aspect of it? not really.
Hold McGroin @ Jul 16th 2008 3:50PM
Hey, moron, go buy a PS2 if that's what you want to play. Are you that dumb?
"Forcing me to buy new games" you're an idiot, they BUILT THE DAMN THING TO PLAY NEW GAMES. If your PS2 is so important to you, why don't you KEEP USING THE ONE YOU ALREADY HAVE?!?!?!?
Coyote @ Jul 16th 2008 4:08PM
Perhaps he meant actually playing his back library on the $400 system that was promised with the ability to play them.
sinjinn @ Jul 16th 2008 4:16PM
promised ? is sony his girlfriend or something?
John @ Jul 16th 2008 5:15PM
the point is, without backwards compatibility your library of title drops to a fraction of what it was otherwise... so while you had a choice to buy old OR new games before, now you can only buy the new ones which are 3-6 times more expensive. I got Shadow of the Colossus, Resident Evil 4, and Warrior Within for $20, and I got Sands of Time for $10. Then, I got F.E.A.R. for $60. The ability to toss in an old PS2 game was huge for me, since there are still PS2 games I want to play and part of me dies each time I drop a substantial portion of the cost of the console on a game. Backwards compatibility also means I don't have to have a PS2 with its wired controllers lying around, and power cord and composite video cable as well. My current TV setup involves 5 cables - 3 power, and 2 HDMI. Why would I want to throw another box and more wires in?
tekdroid @ Jul 17th 2008 4:39AM
John @ Jul 16th 2008 5:15PM
My current TV setup involves 5 cables - 3 power, and 2 HDMI. Why would I want to throw another box and more wires in?
------
To play PS2 games? ;)
Joowan @ Jul 16th 2008 3:26PM
This... I .. ... what......
i don't know what to say anymore
thedesolate1 @ Jul 16th 2008 3:28PM
Just as out of touch as our Republicans in office.... nothing to see here folks. Well you do have to give them credit though for backing their UMD till the very bloody end... even if they could easily implement some read only memory sticks like sandisk is doing with the Write once SD cards.
FreshJulius @ Jul 16th 2008 6:16PM
You're a damn moron if you think Democrats are any better than Republicans.
Go back to playing your 3DO.
Spyvie @ Jul 16th 2008 3:28PM
I can't believe there were people rooting for Blu-Ray to "win"
Be careful what you wish for I guess...
Metkis @ Jul 16th 2008 5:13PM
Please... as if MIcrosoft is going to make a more open format.
Zorque @ Jul 16th 2008 7:07PM
Microsoft didn't develop HD-DVD, Toshiba did. Don't say stupid things without doing the 5 seconds of research it takes to realize you're wrong..
Rezwan @ Jul 16th 2008 3:28PM
I wish PSP was a birth child of Apple. PSP updates would've been so much cooler with Apple than anything from Sony. Imagine a PSP with touchscreen, a hard or flash drive, solid music and video player.
Kspraydad @ Jul 16th 2008 3:35PM
Pass.
BradVT @ Jul 16th 2008 3:52PM
You mean paying for updates would've been so much cooler with Apple, right?
tyler @ Jul 16th 2008 4:24PM
So you mean an iPhone with x, ^, o, and [ ] buttons?
But then it would just be an iPhone with... (you see where I'm going?)
Metkis @ Jul 16th 2008 5:13PM
you forgot the "...and no games"
Not to mention a proprietary port and proprietary software. No console integration... I could keep going.
Dtofte @ Jul 16th 2008 3:30PM
This is me not ever buying a PS3 then... I don't have a PS2 but there are certain games for it I really want to play, I have already bought shadow of the colossus.
I'm just gonna buy a PS2 then or borrow a friends.
Miguel @ Jul 16th 2008 3:37PM
Yeah, no BC at all in the future or for the current 40gb is a really bad idea on Sony's part. I have a friend who is in a very common situation. Until they bring BC to the cheaper model he wont buy it.
BMErdin @ Jul 16th 2008 4:37PM
That's where I am, too. No BC = no sale.
GaryZ @ Jul 16th 2008 3:31PM
DOWN WITH DRM!
Seanross @ Jul 16th 2008 3:32PM
Backwards compatibility will be back.
They took out rumble tech from the controllers and said we didn't need it anymore, it came back eventually. I know it's because of two different reasons but I just have a feeling.
And who buys UMDs O.o? I only had 2, Spiderman 2 that came with the PSP at launch and the Family Guy Movie i got from Amazon for free. Mot people I know rip movies to a Memory stick. I mean why pay $20+ for a UMD with no DVD type extras?
Aedile @ Jul 16th 2008 3:56PM
I bought craploads after the format failed and they were easily found for $3-$5 from retailers who were no longer going to carry them.
Seanross @ Jul 17th 2008 4:11PM
But didn't you hear it didn't "fail", that's why they're still gonna support them. And you didn't buy them at full price.
I know of nobody who bought the PSP for UMDs... but I know many people who bought the PS3 because of the Backwards Compatible selling point.
Sony does not have their priorities in line. I just hope they're not standing around wondering what happened when they're caught with their pants down....
Kspraydad @ Jul 16th 2008 3:34PM
Software BC will come back...
SONY cannot afford to leave a huge PS2 library unsold as digital distribution.
Alex Padilla @ Jul 16th 2008 3:35PM
I long for the day when I can download a video off of the XBL Marketplace and watch it on a PS3, or vice-versa. Companies should just work together instead of isolating the consumer to a specific brand. However, they'd probably do that through DRM, so...just let everyone do what they will with their purchased media and go after the unlawful ones. Be fair, man!
Juxtah @ Jul 16th 2008 3:38PM
I can kind of see the business logic behind their reasons but not really the good business logic behind them. I have a PS3, and it's good but make it better Sony! We want DRM free stuff and backwards compatabilty! Hell we'd even settle for an emulation based system for PS2, it should be possible with the PS3's hardware.