"I think its fair to say that the first year of PS3 was a difficult one," the SCE president and CEO told the assembled trade and media delegates.
"There were some teething problems, and our customers were a little underwhelmed by the range of titles that were available."
"This was something that we were very much aware of and we were confident that we could overcome. Things have improved greatly for PS3 since the Christmas season and 2008 has gotten off to a fantastic start."
For the full highlights of Kaz Hirai's presentation at PlayStation Day '08, head over to the interviews and features section.