E3: David Reeves Talks PS3

I think they have. Not deliberately, but at E3 last year and maybe the year before, the presentations they did to a European and a Japanese perspective - yes. To an American perspective - no, because the difference in cultures is you have to go, 'Ra-ra, I'm the best.'

We in Europe, and especially the Japanese, don't necessarily accept that. You have to say, 'We're doing our best, but we're not the best.'

Globally, I can't really comment. I would say that in the UK, Xbox 360 is doing okay. I would say in Continental Europe it's about dead. In Japan it's dead. I think it's doing very well in the US.

Wii is doing very well. Hats off to them; not only have they done well, they've got back in stock. They're marketing the console and the games extremely well. Two years ago the industry was writing them off, but they've come back. We owe a debt to Nintendo for keeping the industry going in the last couple of years; they're the ones who have kept it going.

I don't think it's to do with market leadership, it's to do with growth. If we are to look back in five years' time, what we have to say is we have to double this industry in five years. It's not necessarily who's the market leader.

I think it will be cyclical. It's the same with Adidas, Converse, Puma and Nike; they all bring out new models, but in the end they have such store presence and so much marketing they have trebled that industry in the last eight years. That's what we have to do.

We've now got to appeal to families and to older people; that's where the growth is going to come, broader franchises. They're not going to be all Killzones, they're not going to be all God of Wars or Metal Gear Solids. They're going to be LittleBigPlanets, Calling All Cars, localised SingStar versions. We're doing a Bollywood version of SingStar; we'll probably do one in Russian as well.

I honestly don't think that just having the games on Xbox 360 is enough. I know it's nice to focus on one year, but he said the same last year - 'We're going to win the holiday season.' But they didn't; they missed that opportunity.

I don't want to criticise them, but they can't say the same again. PlayStation 3, you will see, will be far and away the winner when you look at it by March '08. They really, really will. It's something that is going to be a slow burner, and suddenly it's like a tsunami; it will just overtake you.

You can't take a scattergun approach of putting all the games out. The Metal Gear Solids and the GT franchises - you don't have to put them out in November and December. You can put them out in January, March, April, whenever you like. A big game will move the platform.

In fact having a window of silence sometimes in those months is very good - that's what we've found. Metal Gear Solid always does well in March.

It's just a question of money. If Microsoft wants to pay USD 50 million just for that... Then I would say they're quite desperate. But as Jack Tretton said, we're really not in the business any more of buying exclusivity. We're more in the business of developing, from Phil Harrison's area, new IPs. We want to move on.

It's too easy to look at and say, 'We must get the GTA franchise.' By the time you've got it the world's moved on, and they'll be talking about some other game. I've got children who are 11 to 15 years old, and those kids are looking forward and not necessarily looking back.

They're the kids who are going to be buying it - the new franchises, but not necessarily the old ones that we signed up to E3 four or five years ago. They're not going to drive the market in the future; it's going to be the new ones.

It's going to be a lot more network based, to start with. I have absolutely no doubt about that. That will bring in people who are more PC-oriented, people who are more music-oriented and downloading through iPod.

I think there will be much more focus on shorter games, episodic games, instant gratification; less emphasis on a hard console or a hard laptop. The concept of a console eventually will disappear.

Yes, we are. We think with the capacity in the hard drive to update the firmware, that's certainly possible. We're in year eight of PlayStation 2 and I think we can still get to ten years on PlayStation 3.

That doesn't mean to say that something else might come out. I don't think it will be a PlayStation 4; it will be something completely different. But something will come out before we get to ten years on PlayStation 3.

Retail, as they have in the music industry, will be left with something - but not everything they want... I think eventually they will struggle. Some countries like France are adjusting. Certainly in Japan they are adjusting. Unless UK retailers move in that direction, they are going to struggle.