David McLean: My name is David McLean and my role at Microsoft is as Regional Director, Australia and New Zealand, Entertainment and Devices Division. It’s a pleasure to be speaking to PALGN.
PALGN: We recently heard a claim that Microsoft will have 160 games available for the Xbox 360 this Christmas. Is this on track to happen?
DM: Globally the Xbox 360 supports 160 games. This kind of support is so important because for the consumer it really is all about the games. Xbox 360 has smashed all local sales records by selling over 400,000 games in the first seven months. To put that figure in perspective, that's almost twice what we sold on Xbox, more than twice what was sold on PS2, and more than triple what GameCube sold in its first six months.
We’ve been able to achieve these records because Xbox 360 has games in every genre, age group, skill level and most importantly, budget; from the biggest blockbuster franchise to the casual and retro classics on Xbox Live Arcade from as little as $10.
PALGN: Will the delay of the PlayStation 3 launch affect Microsoft during the Christmas period?
DM: It hasn’t affected our strategy or plans for Xbox 360 this year. In fact, to be honest, we’re disappointed that consumers won’t be able to compare the two consoles side-by-side this Christmas and then make their purchasing decision a position from which we believe we win.
PALGN: Is there any details yet as to when the HD-DVD add on will be released in Australia? Has a local price been determined?
DM: We can confirm a release in early 2007 for the HD-DVD Player and we have just announced it will carry an RRP of $249.95 and include a copy of Peter Jackson’s King Kong as well as an Xbox 360 Media Remote, making it the most affordable HD DVD player in the market. As you can see, the combined price of an Xbox 360 console and the HD-DVD Player is very competitive indeed. We realise that not everyone is interested in HD movies, so we feel it’s important to give consumers the choice. We’re not forcing people to pay for something that they may not even want. If you want to watch HD movies, then this is obviously great value for money. If you don’t then that’s great too, you still have a fantastic games console to enjoy.
PALGN: The Xbox was overwhelmingly successful in Australia and the Xbox 360 seems to be following the success of its predecessor. Microsoft took a large market share away from Nintendo in the last console generation, but Sony maintained a strong lead. What position do you see Microsoft playing in the next generation of consoles in Australia and New Zealand?
DM: When we entered the console gaming market with Xbox back in 2002 we knew we had to prove to the industry – the retailers, the media, the publishers and most importantly, consumers – that we were a serious contender. But I think we did exactly that. We feel that already in this generation, the game has changed. When you see the complete Xbox 360 story, it is clear that Xbox 360 sits right in the middle of the consumer sweet spot. It is the perfect combination of powerful hardware with the right amount of functionality that consumers are looking for, the strongest games line up, great accessories that give you the choice to enhance your experience when you are ready, plus the world leading online Xbox live service – and all at the right price. We believe this will put us in the number one position this generation.
HD-DVD Player: Available Early 2007.
PALGN: With regards to Australia and New Zealand specifically, what percentage of Xbox 360 owners are using Xbox Live Gold?
DM: This is a really great example of how we feel the game has changed this generation. Last generation everyone knows Xbox Live was a terrific success, yet less than 10% of Xbox owners were connected to the service. This time around, 60% of Xbox 360 owners worldwide are connected to Live – and that figure is around 50% when you isolate Australia and New Zealand. It’s really phenomenal to think that 1 in 2 gamers are enjoying the benefits of playing multiplayer games online, chatting with friends, downloading music and game content, and all the other great features of Xbox Live.
PALGN: The Xbox 360 premium bundle retails for $649.95 but some retailers have been selling it for much less than that. Is this a loss incurred by the retailer or Microsoft? Do you think it’s possible that this could be an indication that a Xbox 360 price drop would be well received? Are there currently any plans for the Xbox 360 to drop in price?
DM: We believe that the Xbox 360 Premium and Core systems both offer tremendous value, so we have no plans for a price drop. In fact we have just announced two bundle packs for Christmas that give even more value. The Xbox 360 Massive Entertainment Pack comes with the premium console, a second wireless controller, plus copies of Project Gotham Racing 3 and Dead or Alive 4 and will save you $100 off the RRP. Then there’s the Family Fun Pack, which contains the core console plus a free copy of Kameo. We believe both these bundles will be extremely well received this Christmas.
PALGN: A few of Microsoft’s key titles for Christmas (Crackdown & Forza Motorsport 2) have been delayed. What other titles are planned for the Xbox 360 this Christmas?
DM: Our Christmas lineup is incredibly strong. From our first-party studios we have two titles that, for me, really showcase the power and diversity of the Xbox 360 platform. On the one hand, there’s Gears of War from Epic, an intense, cinematic action shooter that pushes the hardware further than it’s been before – it really is an astonishing looking game. On the other hand, there’s Viva Piñata from Rare, a bright and colourful virtual playground that people of all ages can enjoy.
And it’s not just me saying that, the reviews for both games have simply been fantastic – I don’t think even Halo 2 has received as many 10s out of 10 as Gears of War has done so far. We also, through our valuable third-party relationships, can boast a Christmas lineup that includes next-gen exclusives like WWE vs Smackdown, Sonic the Hedgehog, FIFA 07, Pro Evolution Soccer 6, Splinter Cell: Double Agent, Rainbow Six: Las Vegas as well as new Live Arcade titles such as DOOM, Lumines Live, Contra and Sensible World of Soccer coming soon.
Rainbow 6 Vegas: Xbox 360 exclusive for now.
PALGN: Both the Xbox 360 and Playstation 3 have had their Australian release dates pushed back following the initial announcement. Is there any difference between releasing games and hardware in Australia as opposed to overseas? Are there specific challenges that have led to these delays?
DM: Firstly I’d just like to make clear that our launch was pushed back by three weeks, from early to late March this year. That’s a very different situation to what Sony has done with PS3, delaying its launch by nearly six months.
There are many challenges involved with launching a console system, especially when you’re attempting a simultaneous launch in every major territory. And, it’s true, sometimes certain territories can be disadvantaged, especially in the allocation of stock. When we launched Xbox 360, we identified these challenges up front and the result was we hit our Nov 05 launch date in the US, Europe and Japan, and we hit our March 06 launch date in Australia and New Zealand. We made sure we would have the stock available at launch to satisfy demand and the result was we generated over $30 million in day one sales, one of the highest-grossing entertainment launches ever in Australia.
PALGN: What are your thoughts on the rating system for video games in Australia?
DM: Microsoft fully supports the ratings system in Australia. We’re also very appreciative of the way in which the OFLC implements the classification guidelines and support the decisions it makes.
PALGN: The Xbox 360 classics range will be launched in the UK and America shortly, can you give any indication as to when Australia and New Zealand will receive a budget range?
DM: For the time being we have no local announcement to make on this.
PALGN: The PlayStation 3 is expected to be completely region free whereas Microsoft lets publishers decide whether the Xbox 360 titles are region locked. Is this a policy that is likely to change after the PlayStation 3 is launched or will this always be a choice left up to the publisher?
DM: As a platform holder, we encourage our game publishers to make their own decision on regional coding. If a games publisher wants to make a region free game, then that’s their choice.
PALGN would like to extend our thanks to David McLean for answering our questions and David Wildgoose at Pulse Communications for arranging this interview.
? Sort of destroys his entire interview.
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