Peter Moore:
Let me be clear on the Core System. The Core System is built when we look at a five-to-ten year strategy and we roll out what we need to be in 2007, 8, 9, and 10. We need both features and price to be on our side. And the Core System gives us that ability to use price on our side. Don't think of it for the Japanese market, or even the U.S. market, but think of it for markets that, A), got to go into China--price is an issue. Got to go into Russia. Got to go into India. Got to go into Poland, Hungary, Latvia. Those are markets we're going in. We're going to globalize this industry, and price becomes a big issue. The other thing, when you look at Xbox 1, having that hard drive built in cost us a lot of money. Not having the flexibility for a more casual gamer down the line, to sell them an Xbox for $79 that doesn't have a hard drive. Doesn't have it, but I'm just gonna go buy an MU and I'm as happy as a pig in you-know-what playing. We sold every single Core System that we put in the market in both Europe and the U.S. And the Hard Drive wasn't attached one-to-one. So people just went out, got an MU--sometimes didn't even buy an MU! Just went out and played--but it's no different than the PlayStation 2 or the GameCube. You can call it the "retard pack," but what is it? With those two consoles, you've got to go out and buy out an MU, right?
Peter Moore:
Moore:Two years ago, we sat down with developers and explained our strategy. The first thing they want overall is, what's the biggest install base you're going to give to me? How are you going to drive to a 50, 60, 70, 80 million install base, 100 million install base. Sat down and talked about our strategy for the globalization and using price and features as two different "weapons," if you will--which, I don't like to use that word, but, that's what we needed to do. When you learn your mistakes from the first one--you can't cost reduce something that's got a fixed hard drive, fixed memory built in there, we just can't cost reduce it to where we need to be. And we need to offer cascading price points in 2008, 2009, 2010, to bring in tens of millions of gamers each year. And the flexibility the Core System versus the Premium SKU gives, is that.