INTERVIEW: Michael Ephraim Part 1

MCV Pacific talks to Sony Computer Entertainment Australia's managing director Michael Ephraim about the Australian market, Sony's plans for the future and the PS3 price drop.

How is Playstation evolving with the range of non-gaming services consoles now offer?

It's an ever-changing landscape in terms of which set-top boxes are now being plugged into televisions, but I think first and foremost, Playstation 3's point of difference is that it plays the best games in either normal or 3D. The other factor that we're starting to see major take-up on our console for is the Blu-Ray capability.

Streaming movie services, music and music video services are gaining in desirability, so I think every additional entertainment feature you can give them adds value for that customer on their purchase. But first and foremost, T-Box and other competitors don't really have that gaming-centric direction. So we're keen and working hard to deliver other services, but I don't think we'll reach the tipping point when people buy a box based on those.

It's what we offer on physical disks, exclusives, or the additional digital content for gaming that's really hitting the buttons for the consumer.

Which services will be most impacted by the implementation of the National Broadband Network (NBN)?

Everything! I mean everything digital requires data usage, so anything from a small file for streaming music to downloading your favourite movie, mini-game or beta game. Data costs are coming down  (which they have over the last couple of years dramatically) and reducing the barrier for consumers. The NBN will drive that further.

You don't think it'll change the way consumers will make their core purchasing decisions, just that it'll increase their usage of non-gaming services then?

Yeah!

The PS3 has had a price drop recently and subsequently sales increased by over 400%. Is Australia a particularly  price-driven market?

First of all, over the lifespan of PS1, PS2 and PSP, Australia has always over-performed as we come down in price. At launch, our percentage of the global market (or the European market that we report into) is always lower, then starts picking up its share of the total market as we come down in price. 

Was 400% the expected increase?

The take-up of the console since the price drop has surprised us a bit, but we do need to consider that the PS1 installed base in Australia was around 1.5 million units and PS2 at about 2.5 million units. I think what we're seeing is that while the sales on PS1 and PS2 grew exponentially as we came down in price, those same late adopters are probably only now trading up to PS3.

There are more late-adopter consumers ready to make the upgrade this time around. So, a bit of a surprise, but not completely. We think that the upgrade cycle of PS1 and PS2 owners is going to keep the sales very brisk for us, into Christmas and definitely into next year.

Add a new comment