On Monday, GameStop exclusively revealed to Level Up
that during the first week that Grand Theft Auto IV was available in
its U.S. stores, 64 percent of all copies sold were for Xbox 360 and 36
percent for Playstation 3. We sought reaction from both Microsoft and
Sony to GameStop's results and our impromptu analysis, a portion of
which we shared with you on Monday. Today, we're publishing our
conversations with the two console manufacturers in their entirety. We spoke by phone with Peter Dille, senior vice president for marketing at Playstation. Here's what he had to say:
GameStop
has exclusively provided me with the percentage split on their first
week sales figures for GTA IV. According to them, 64 percent of the
copies they sold were for Xbox 360, and 36 percent were for PS3. So
given that Grand Theft Auto has primarily been associated with
PlayStation platform since GTA III in 2001, are you surprised that the
PS3 wasn't able to corral a higher share?
I'll take a couple
steps back. First of all, we're not in a position to share retailer
specific information. I'm not sure if you got that from Microsoft or
Rockstar or GameStop themselves.
No, I got it from GameStop.
Okay.
It's our experience that GameStop probably does a little bit better
with the early adopter crowd. There's a larger installed base right now
on Xbox 360 than on PS3. So it's not surprising that there's going to
be more selling on Xbox 360 than PS3. Having said that, we're really
excited about the ratio. If I had an installed base advantage of 3-1, I
wouldn't be crowing too much about a 60-40 sales advantage. We think
it's not as high as what GameStop's telling you, if you look at [the
full picture on] the national level. They're outselling us, but not by
that same margin, and it's because of their installed base lead. With
an installed base lead that's close to 3-1, if you're bragging about a
60-40 software split, it's clear evidence that the Playstation 3
consumer is overindexing on GTA IV, and the Playstation brand loyalty
that we've been talking about is bearing itself out in the marketplace
as we speak.
So when you were looking
at the release of the game, you didn't think that the history of GTA on
Playstation was necessarily going to bring you guys to 50 percent
parity or more [in terms of GTA IV market share]?
Well, we don't
really make a record of making predictions that are based on firm
numbers. But what we said was, we're confident that the Playstation
loyalists--the guys that grew up playing GTA on PlayStation 2--would
clearly be a factor, and again, I think we're seeing that. Keep in mind
as well that we're looking at a couple weeks of data. If it ends up
being 50-50, that would be a monumental victory for Playstation 3. The
fact that it's close to 60-40 right now is a huge victory. But if you
could catch up against the installed base advantage that they have and
get it to 50-50--I mean, my God, that would be unheard of.
So
we're really excited about where we are today, and we're very confident
about the future momentum not purely based on just GTA alone, but also
based on everything else going on with Playstation, the existing
momentum that we have. We feel like those consumers, as they come into
the PS3 family, GTA IV is going to be one of the key games that any
gamer is going to want to consider adding to their library.
In terms of the market share gap on GTA IV, do you expect it to widen or narrow over the rest of the year, and why?
Well,
what I'll speak to is the gap between PS3 and 360, and we expect that
to continue to narrow. That would beget a narrowing on any competitive
title, including GTA IV. So again, to answer your question, it's going
to narrow because the momentum is clearly behind Playstation 3 these
days, whether it's the Blu-Ray victory; whether it's the holiday
momentum that hasn't slowed down--we outsold them in the first two
months of the year. March was a virtual dead heat with them outselling
us by, I think, a couple thousand units. I think the April sales that
will come out in a couple days will be another great story for
Playstation 3.
Beyond the couple days of GTA sales that will be
reflected in April, bear in mind that we had another very big release
for our platform called, you know, Gran Turismo 5 Prologue; a big core
gamer game that people have been dying to get their hands on. Then the
following month after May is Metal Gear Solid 4, and that is a huge
game that gamers have been waiting for. It's PS3 exclusive, so it's yet
one more reason. And then we're going to roll into the back half of the
year with things like Resistance 2 and LittleBigPlanet and SOCOM and
SingStar for PS3. So there's a huge depth and breadth of exclusive
content on PS3, and it's for that reason that we think that the
momentum is behind the Playstation 3. Then you just add on top of that
hardware technology superiority, Blu-Ray victory--it's a really big
year for PS3.
Now, this goes to
something you said earlier: I did the math on my own to compare how
well each platform indexed, and like you said, right now, Xbox 360 has
70.7 percent of the market if you just look at PS3 and 360.
Yes.
Since
70.7 percent of the market is 360 and 29.3 percent is PS3, it means
that PS3 overindexed and 360 underindexed in terms of GTA IV sales.
Right.
So
I'm wondering what would you attribute that to. Do you think that's
only sort of what you're calling the Playstation brand loyalty, or is
there anything else at work?
You know, it's really hard to
dissect exactly, and I think anyone who is going to pretend to give you
an exact answer is frankly spinning or fudging it for their own
advantage. The reason I say that is because it's hard to determine at
the end of the day was it the PS2 brand loyalty that was the ultimate
factor? Or was it the fact that this consumer just bought a
high-definition television and decided the only way he'd he'd want to
go is with a PS3 because it's got a Blu-Ray player? Is it because he
realized he could also buy the PS3, play the same game [GTA IV] on both
platforms on the PS3, but also have the opportunity to play
LittleBigPlanet, and next month he could buy Metal Gear Solid, and all
of the other great games that we know go into the decision about which
console to buy?
There's lots of factors at play. So it's hard to
just dial down 70.1 percent versus 30 percent and say which really came
down to PS2 brand loyalty; which came down to these other factors.
Having said all that, there's an awful lot of reasons why people are
buying PS3 right now, and we're thrilled if any one of those are
playing a role--and we think they're all playing a role. It's really a
bit of a snowball going downhill at this point.
I
guess you have an idea of what the numbers are--and presumably you
can't or won't say until they actually get released by NPD--but is it
your expectation that the release of GTA IV gave PS3 a bigger sales
boost than it did 360?
Well, it's not my place to say it gave us
a bigger sales boost than 360 because I don't have access to 360's
numbers. What I can tell you is that the release of GTA definitely gave
PS3 a sales boost. We saw it in the month of April, with just a couple
days in the marketplace, but we're also seeing it each follow-on week
here in May and we're really excited about that. But while GTA is a
clear factor, there's probably some other considerations going on as
well and we're really excited about all of them. Now, unlike Microsoft
we don't make it a practice to break down some of those numbers in
advance of TRSTs, so I know you have a couple more days to go and then
we'll all have a shot at those numbers.
It's
pretty unusual for both Microsoft and Sony to provide co-marketing
support to the same publisher for the same title, but that is in fact
what happened with Grand Theft Auto IV. From your perspective, why was
that important? Why wasn't that a turn-off to you guys that there were
also going to be ads out there that would have Xbox 360 stinger at the
end?
Well, we take a look at the market and if there are third
party titles that we feel are great games for our platform that help us
sell hardware, then we've always had an interest in working with third
parties. We've got a long history of working with Rockstar on the GTA
series as you know. At the end of the day, that's the only criteria
that really concerns us. What our competition does is not particularly
important as we think about these things. So again, we've got a huge
installed base of folks who grew up playing GTA on Playstation branded
products, we know there's a lot of pent up demand for it, and we wanted
to get the word out that the game was out on our platform and that
we're proud of it. It's a bit of an opportunity to frankly kind of ring
a bell and let people know to go out and get a PS3.
We've also
been hugely pleased to see the reviews. There's been a lot of FUD
coming out of lots of people about what the experience would be on our
platform versus their platform, and it's been great to see reviews from
people like IGN that say, you know, the game actually looks better on a
PS3. So, to answer your question, a game like Grand Theft Auto IV
deserves to be celebrated on our platform and we're really excited
about the role it will play in our marketing going forward.
Having
said all that, I think a big point of distinction is that we have a lot
of other things that we're talking about these days, and I'm not clear
on what the other things are that we'd be hearing from, from the other
camp because all we hear about is GTA from the other camp. And again,
on my side I've got Metal Gear Solid 4 coming out next month; we just
shipped Gran Turismo 5 Prologue; we've got LittleBigPlanet in the back
half; SOCOM; Resistance 2; and a plethora of great third party games.
I'm overdoing my adjectives but there's a ton of great Playstation 3
games coming out, many of which are tremendous exclusive games on our
platform, and GTA is one more reason to buy a PS3, but it's one of many
reasons.
And the last question is, how
concerned are you about the impact that the 360 exclusive downloadable
content will have on relative sales of GTA IV on PS3 and Xbox 360 going
forward?
We're not overly concerned about it. Frankly, we don't
know enough about what the plan is. I know that there's going to be
some downloadable content at some point in the future; I don't know
when that will show up; I don't know what it's priced at. The fact of
the matter is, if you play Grand Theft Auto IV right now, one of the
great accolades that this game is getting is just the sheer magnitude
of gaming that you're getting for your dollar. People are talking 100
hours of gameplay out of Grand Theft Auto IV right now. So, there's no
doubt that that's a very satisfying experience.
For all I know
by the time that that downloadable content comes out people will have
moved on to play LittleBigPlanet or Resistance or Metal Gear Solid.
We'll see. That chapter will be written someday in the future. But
right now we've got two games that are on par with each other on two
platforms, the consumers have a choice between buying many, many games
that are exclusive on PS3, versus potential opportunity to use their
dollars to buy some additional content for a game that they played
several months ago. We'll see which wins out in the end. We're very
confident with our strategy.
Great. Well, Peter, thanks so much for your time, I appreciate it.
Hey, always a pleasure.
To read what Xbox's director of product management Aaron Greenberg had to say about GameStop's results, click here.