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Engadget Interview: Peter Moore, head of Xbox
>> An excerpt of the interview with Peter Moore at engadget.com:
[QUOTE]
* Engadget: --compared to PlayStation, PlayStation 2, Dreamcast -- Xbox which went 180 days or so before its price drop and now the PlayStation 3. The PlayStation 2 went went 525 before a price drop, and its an enormously sucessful console and you're even pushing that number. Why 600+ days before a price drop? You could have hit those numbers with a price drop. Shame Kim said that a price drop is in the works.
* Peter Moore: I don't know what Shane said. Clearly people I think are misinterpreting what Shane said, but let me be very clear that 600 days should be good news for people, good news for the industry. One of the things were looking at the need for all of us to look into consumer segments. Yes, of course ultimately there will be a price drop -- we're not going to be more than 600 days or 1200 days at our current pricing. This business is built on getting your pricing in line. This is my point back to Sony. Getting your pricing in line to attract new consumers so that you continue to replenish your consumer base. There are people who sit on the sidelines until one $199 is the pricepoint. We've seen that in previous consoles. Sony has said themselves that 80% of their volume comes at $199 or lower, and so, huge news for our industry that we're still all pretty solid and our software prices are holding well, and what that means is that we can continue to invest into new games. We're very comfortable with our pricing right now. We have nothing to announce for pricing, but you guys will be the first to know when we do.
* Engadget: So could you comment on how you might price a product like that [Halo3 themed Xbox360]? Is it going to be a Premium price? (But its got HDMI.) Is it going to be Elite price? (But its got 20GB.)
* Peter Moore: The way we work with something like that, is that retail is well aware of the product, we're building out our pre-sale programs, and then there will be an announcement. It won't be months, it will be clearly weeks. What we need to do is, we owe it to retailers to not announce their price for them, clearly there will be a suggested retail, as there always is. It's a special edition. When I was at Sega we'd have have 8 SKUs going here at the same time. The Sea Man edition, the Hello Kitty edition, the Sega Sports edition. I mean this is nothing new in our industry. Its a limited edition, we run it once on the lines.
* Engadget: But are you guaranteeing or insuring that the systems that are rolling off the assembly lines now and the systems that will be returned to consumers will be fixed properly this time. It won't be a situation where there are multiple replacements.
* Peter Moore: Yeah. I mean, nothing is perfect, guys. And the other two hardware companies have their problems as well. I can't guarantee everyone in the world that we go fix one thing and then something else [won't] happen. No I'd be stupid to make that guarantee. But I feel very, very good about the quality of hardware now. You guys know this, every day in the factories where we are building these and where we are learning more about it. Sony's very good at it, Nintendo is very good at it, and we're very good at it. You're constantly tweaking, moving parts around, you're renegotiating with suppliers because your goal is to continuously raise the quality of the box, and bring the price down. Because you have to get your costs down to be able to move your pricing to the level you want. If your costs never came down, then price would never change.
* Engadget: So current units that are shipping now, what happens to them to address that problem?
* Peter Moore: Well we're certainly not shipping units that have problems. Knowingly should I say.
* Engadget: So at what point did you address the manufacturing problem? If I bought a unit 4 months ago...
* Peter Moore: There is no answer to that.
[/QUOTE]
Full Interview: engadget.com
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