Peter Moore Interview
We check in with the head of gaming at Microsoft during E3 2006
Categories: DVD/TV Features, Features, PC Features, Tech Features, Xbox 360 Features, Xbox Features
Posted by Daniel "monk" Pelfrey on May 29th, 2006
I had the opportunity to sit in with Peter Moore as he fielded questions from several folks. It was a fairly intimate affair as there was myself, Adam from Kikizo.com, Kaleb and Emily from CV-Games and James McCormick from HomeTheaterSpot. When nobody wanted to go first, I decided to jump in with the first question.
DigNews: Where’s my adapter? I like to use the “Grizzly” controller from the original Xbox when I play Halo 2 on my Xbox 360.
PM: “Grizzly”? Is that the big one? Is that your name for it? Go on Ebay dude, because there are thousands of them.
DigNews: But an adaptor to use the original Xbox controllers on the Xbox 360.
PM: Okay, I don’t know. I’ll go find out for you. I’d have to leave for about 10 minutes and find the right person. But we’ll get you an answer to that. You’re right. If that feels better, more stable in your hands, you know the great majority of people just didn’t like it. But actually, I don’t mind it either.
DigNews: Even a solution to hook up your last generation Controller S…
PM (brandishing a new Xbox 360 controller): See, this is the finest controller, yet it’s not good enough for you.” Thankfully, everybody laughed, even Peter. “There is no finer controller ever made than this.”
Adam: You had to carry the whole thing…
PM: I am just the on air talent. Oh, and that other guy that came on, yeah.
Adam: How did that feel?
PM: We have a lot of great stuff, we have an embarrassment of riches, I have a great team. You know, those things, they may seem like we just make them up that morning, but there’s a lot of work goes on to make it. You know the other thing is we’ve learned a lot the last couple of years. A lot more substance, a little bit less style. Not building our stages, and letting the screen be the hero, so when that chainsaw goes in [a reference to the Gears of War demonstration at the pres conference a few days earlier – Daniel], you just feel that rush of blood coming out all over the place there. I feel really good about it. Everybody’s come in here the last two days and said our press conference kicked ass.
Like I said, I’m just the talent. I just speak up there. I have a very talented PR team that puts it all together.
Adam: So what do you think the Xbox strategy is right now from the point of view that Robbie’s [Bach] commitment last year of reaching 1 billion gamers.
PM: Robbie said, and I swear I’ve said this a hundred times, the industry needs to touch a billion consumers in the next generation. Nintendo is doing their job in broadening the look and feel of what games are all about to the consumer. I like to think we’re doing our job, because Live Anywhere, what Bill [Gates] showed, touches a lot of people, and Sony wants to sell high definition movies.
We’ve got to broaden, that’s what it’s about. I feel real good [about it]. Eventually, and you saw Bill talking about broadening the marketplace, that’s how you touch more people. We’ve got to figure out how to get into China, Russia wants videogames, we’ve got to figure all that out. We’ve got to protect our IP first of all.
Hey, people laughed, and they’re laughing less now. They see Bill Gates come and talk about Live Anywhere and how you link mobile phones, the PC and Xbox 360, and they’re laughing even less. We’ll take the abuse.
DigNews: What’s your response to the dual SKU and price point for the PS3?
PM: Sounds awful familiar. The dual SKU, the global launch in November, they’ll have an online network, who would have thunk that? We’re going to dust off the Freestyle controllers in the warehouse we did a few years ago.
Pricing, you asked about that. They got to figure out where they need to be. I’m sure they’ll be fine at launch. It’s going to be a bigger challenge as prices need to cascade down, we’ll see where we’re at there.
Adam: The HD-DVD drive looks pretty sweet. Is there a reason you didn’t announce the price yet?
PM: We haven’t figured out the price yet. We’re still putting in the final componentry, it’s starting to work really well. It’s a beautiful device. For the way that I want to do that in my home it fits perfectly. It’s small enough that I can just put it away in a drawer when I’m not using it. Maybe I watch 2 movies a week if I get a chance. I’ll just bring it out, pop it in and away I go.
It’s all about choice. You’ve heard me say this. If you want to jump in and be part of watching High-Def and be fortunate to have one of these [points to the bitchin’ display unit behind him that is used to demo games] it really shows off great. A lot of people don’t have that and it just didn’t seem good business to burden the cost of the box and get it up to $500 or $600 because movie playback is your primary way that you’re driving what should be a games business into a movie format war business.
Adam: Do you think it makes sense to include that as a pack in somewhere along the line or do you think that retailers will do that on their own?
PM: That’s a tactic that we would look at down the road. The bottom line is that Toshiba is doing real well with HD-DVD. I was lucky enough to get one [HD-DVD player] and took it home and watched Serenity which I haven’t seen before. I didn’t know how cool of a movie it was, and in HD it was really great.
For $499, the movies are going to be less expensive because HD-DVD is less expensive to reproduce. What I love is that you can put a regular DVD on the flip side. So if I only have one format, I’m not going to have to buy HD-DVD players all around the house. I’ve got my DVD and HD-DVD right there. We’re feeling really good about HD-DVD.
Kaleb: When are you going to announce the prices for all the accessories?
PM: Probably in the summer. As we get closer we just sit down with the final packaging and everything we need to do. The wireless wheel just rocks. Believe me. We’ve got a prototype working there, no wires, force feedback, it’s got a tabletop [clamp adapter] or it sits on your lap and you’ve got the pedals, and nothing, well, obviously the wire from the pedals to the wheel, but nothing between you and the console. It’s a beautiful, beautiful device.
Wireless headset, finally. You’re not attached to the controller And the camera is going to be a big deal in the future. No bigger deal than with poker. We believe that the Activision game that they’re doing, the World Series of Poker were you and I can look at each other, no matter where we are, so that when you get your hand dealt, I can look you in the eye, we think that’s a good deal.
Kaleb: I didn’t hear you talk about backwards compatibility at the press conference.
PM: We don’t have to.
Kaleb: When are there going to be more titles?
PM: I’m not sure when the next update is. But nobody is concerned anymore with backwards compatibility. We under promised and over delivered on backwards compatibility. I’m the wrong guy to be talking about this. It’s a very complicated thing we’re doing. Developing software emulation for these things is very complex work. I’m just stunned that we have hundreds of games that are backwards compatibility. More are coming, but at some point you go “That’s enough.” And you move on or you’re not as worried about a game being backwards compatible. I like to think we’ve upheld our end of the bargain in making at least what I believe are 200-some, maybe even 300 games backwards compatible.
James: One of the cool things that I saw last year was the micro transactions concept, like selling shirts for characters, things like that. Do you have a timeline for bringing that about?
PM: Well, the first part was getting the concept up and running, which obviously we have. You’ve got that virtual currency laid out. Then it’ll be a question of building out Xbox Live to have a more rich marketplace that can go truly consumer to consumer and allowing you tools to build out your t-shirts and drop in.
You’ve already seen the publishers do it, despite the abuse that Bethesda got with horse armor. It’s amazing, but who’d have thought we’d be arguing about the price of digital horse armor. It’s very funny to watch, and shows how far we’ve come. It shows we’re all trying to figure out where this new world is going.
It is really the future of what we’re trying to do. The next thing that we’ve got to do is give you guys the tools to do it on your own. We’re busy, trying to get one thing nailed down at a time.
DigNews: With Xbox Live Anywhere and the Vista launch in January how so you see future cross-platform gaming. With Shadowrun being cross platform [PC and Xbox 360] do you see that as the next step [in online play]? How much of that is going to be growing for the Xbox business?
PM: I think it will grow as the consumer wants it to grow. There are certain genres, and Shadowrun’s a perfect example of this idea. You’ve got guns over here, you’ve got technology and you’ve got magic – there’s things you want to do with a keyboard and mouse, and things you want to do with a controller.
First person shooter is an obvious one, but there’s the belief that you’ve got to have a keyboard and mouse you’re going to slaughter anyone with a controller. I’m not so sure I buy into that, but we’ll look at it, and if the consumer say’s “This is exciting.” we’ll continue to invest and invest and invest in that and more and more games will be that way. If the consumer says “Meh. I’m not sure I like that.” then we will listen to the consumer. Shadowrun has got a lot of excitement, people love it from the old franchise. I haven’t got a chance to play it yet. We’re doing PC versus 360 here on the floor right now.
We’re trying to innovate, but we’re not trying to force it on people. If it doesn’t work, and I think it will, we’re not going to continue to churn out games en masse or make every game cross platform. It will be very selective. We’ll see what the gamer says. Live Anywhere is a bigger deal having an umbrella over that.
DigNews: Final Fantasy XI is cross-platform. Will you be working with other third parties to get cros-platform gaming happening?
PM: Yes, third parties have expressed an interest. Final Fantasy XI was absolutely that As a matter of fact, someone just reminded me back in the Dreamcast days we had Quake III that was cross-platform. But we never had Vista, we never had the power of Xbox Live we never had the service to be able to back it up. It was just “Go play a game against each other.” We think the bigger idea is the social interaction, the community, the ability to do marketplace downloads, the microtransactions, that all gets laid around in it, it becomes a much more rich experience.
Kaleb: Is there any plan for a gamerscore, or the gamers to be rewarded in any other way from the points that they achieve.
PM: You gotta sweat it out dude, you gotta earn ‘em. Achievements has turned into a really big deal. It’s amazing what people will do. We have guys, I went on a third party tour a couple of weeks ago, and a couple of the guys traveling with me put their wives to work while they are away so they can maintain their scores and their creds.
Kaleb: Are you going to encourage third parties to go about achievements in a different way not just playing a game for five hours?
PM: That’s a great point. It’s not just about sitting there and playing and playing and playing. Eventually it becomes – you’ve hit your time limit, I’m going to give you that achievement. I always talk about Geometry Wars, the Pacifist Achievment, which you can get at 60 seconds, if you can get it. Apparently you’ve got to be luck, and I’ve never been lucky.
Adam: Going back to you guys doing your part to broaden the market. Maybe another way is doing the handheld that rumors say that J [Allard] is working on at the moment.
PM: J. who? J. is busy. Poor. J. Everybody wants to put him to work doing this whole thing. I’m now responsible for the games business, so both Xbox 360 and Games for Windows. J still runs platform development for all of the stuff that we’re doing. J. has a different role than he did in the past. One of the things that we also figured out about this idea that J., Robbie, me, whatever – it’s easier to push me out in front. It’s my responsibility to do it.
J. is a very busy guy, he’s got a lot of engineers working on stuff. Xbox Live, we talk about all the innovations and achievements, that’s J. and his team. When we do Live update, which will be soon, that’s J. and his team. When we put a million downloads in 19 hours J. and his team have to watch the servers to make sure they don’t burst into flames. This idea that J. is laying on the beach somewhere, I don’t’ know.
Kaleb: What about a larger hard drive?
PM: What about it?
Kaleb: Is one coming?
PM: We continue to look at the hard drive. What we’re looking at is the behavior of what people are doing with the hard drives. Clearly when you have a million downloads you start looking at what you need to do. People are pretty good about managing their hard drives. I manage mine, I watch something once, and if it’s fine, great *pft* it’s out of here. There’s going to be a time when we need to really look at what we’re going to need to do there, but no answers right now.
DigNews: When are you going to drop the [Xbox 360] Core System:
PM: Why would I do that? We’ve got to think globally. We’re American, (well, I’m not, I’ve been her 26 years and still have a Green Card) we don’t think twice, $300 is, well, *shrug*, but that’s a lot of money for the rest of the world. When you start expanding into central and Eastern Europe, you go into Latin America, and some of the more developing parts of Asia, the ability to do a price point that is very affordable, well, I shouldn’t say very, but is affordable to people is important. The Core System, which by the way is selling well in the US as well, and the ability to have price points in the years ahead in the sub-$200 when the other guy may still be at 4 or 5 hundred dollars is pretty darn interesting stuff. That’s what we need to do. While you guys are not the target for the Core System, obviously, there are hundreds of millions who can not afford an Xbox 360 as it currently stands could potentially strive to get to a Core System, go out, buy a memory unit and be fine.
DigNews: So you’re thinking when the Xbox 360 drops in price
PM: IF
DigNews: We know it will eventually at some point. So you’ll keep both systems, and drop both prices?
PM: Yeah, you have to. I think it’s very important for global growth. We haven’t even talked about China The Core System going into China, where you can go online with just an MU [memory unit] obviously you can use Xbox Live with just the MU, we think that’s pretty powerful as well.
Kaleb: I wanted to talk about Japan. It’s going to take a while for guys to succeed in Japan. How long do you think it will be before someone like Square Enix says they will make the next Final fantasy on an Xbox and PlayStation?
PM: I think Square Enix is a very smart company, and they are starting to think much more globally than they have in the past. The Japanese market is flat, it hasn’t had the growth that both Europe and North America have had, and even the rest of Asia. They love the idea of online, their own Play Online servers have been very popular. we’re driving online, which is why we had FF XI. We continue to have a great relationship with them. Our vision for online, and their vision for online – we’re totally in synch with each other. No answers for us or them, but when you have to companies that share the same beliefs about the future of where the industry is going, you can imagine we’re discussing this all the time.
Adam: I was curious, how much of the script for the conference, how much of that is your personal touch?
PM: I have a very talented crew. I say “We’re going to do this and that.” or “This looks good, this doesn’t look good.” A lot of work goes into it. We do draft scripts that people write then myself and a few other people go in and make it more personal. I have to read the words I give out words that sound like me and not somebody else. I’ve got a style that is unique to me and the ability to do that. Then things like tattoos and things like that to give it a bit more energy and life.
Adam: How is working for the biggest company in the world? How is that compared to your previous roles at Sega and Reebok?
PM: It’s very different. I’m still a shoe dog at heart. I was in the shoe business for 17 years. I still miss it. I’m on the board at Timberland, and will go next week to the East coast [for a meeting]. I love Timberland’s products and what the company stands for which is a lot about corporate conscious and making things better. I’ve retained my Shoe Dog, well, Shoe Puppy status at this point. I love shoes, I love athletic shoes, I love what the company stands for.
Sega was very different – a Japanese company. I was running a subsidiary, a very powerful subsidiary and don’t regret a day. The Dreamcast was a fabulous device and people still love it. In all these years I never met anybody who regrets buying a Dreamcast. I like to think a little bit that what we did at Sega about getting people going online was the platform to where we are today at Xbox.
Microsoft is just a phenomenal company. Just the smartest people I have ever met in my life walk past me every day in the corridor. Bill is a legitimate gamer. I know you all don’t’ think so, but the emails that get from him about his views on things are so insightful and the fact that he plays the games, has the service, loves Xbox Live, his kids are growing up to the point to where he’s exposing them to some of the games like Zuma and Marble Blaster. That’s legitimate. It’s a lot of fun and we’re feeling good about where we are in the business today.
Adam: When do you expect to start turning a profit?
PM: We’re a long term thinking company we make big bets. We believe in this business. Entertainment is going to be very important to us going forward, and games are going to be at the core of that. Profits will come.
Adam: Do you think that the investors will be patient with your strategy?
PM: They can either hold or sell. I think they see that this is a great growth opportunity. They may challenge our execution or whatever but they know this is a long term growth opportunity for Microsoft.
Kaleb: What game are you looking forward to the most?
PM: It’s tough not to say Gears of War. And I’ve seen builds you haven’t seen yet. Splinter Cell, I’ve always been a fan. UbiSoft believed in Xbox Live before any other publisher really did.
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Posted by Daniel "monk" Pelfrey on May 29th, 2006 and is filed under DVD/TV Features, Features, PC Features, Tech Features, Xbox 360 Features, Xbox Features. You can follow any responses to this entry through the RSS 2.0 feed. You can post a comment, or trackback from your own site.
