Real next-gen war Ken Kutaragi vs. Peter Moore

[mckmas8808]

This is the best article that I've ever read about the backgrounds of the next-gen consoles that I've ever seen. I no it's long guys but please that 5 minutes out of your time to read and response. This article is great.

It’s not surprising, considering the products they sell, that executives in the videogame business like to pepper their speeches with trash-talking one-liners about rivals. But there are few opportunities for unscripted face-to-face smackdowns, so Peter Moore relishes the moment he bumped into Ken Kutaragi in a corridor at the Tokyo Games Show in September. Moore is the top marketing executive for Microsoft’s (MSFT) next-generation console, the Xbox 360; Kutaragi, the legendary Sony PlayStation CEO, is his archnemesis. The two shook hands, and Kutaragi invited Moore to the Sony (SNE) booth “to check out the PlayStation 3 videos.†Videos? Yes. The PlayStation 3 is not due out until April, and all Sony had to demo in Tokyo were noninteractive computer graphics. The Xbox 360, which launches in the United States on Nov. 22, did not have the same problem. “Thank you, Ken,†Moore said with a toothy grin. “But come by our booth if you want to play actual videogames.â€

Man that's cold Peter. You didn't have to do him like that baby. The battle gets even more interesting below.

The goal: to outflank Kutaragi by finding a mainstream audience even PlayStation couldn’t reach.


The stakes are enormous. If Moore’s attack makes significant inroads into PlayStation’s market share, he will have almost single-handedly realized Gates’s vision of Microsoft as a home entertainment powerhouse. But if Kutaragi has the last laugh, then Microsoft -- already scrambling for a looming war with Google (GOOG) over the desktop -- may have an even greater rival on its hands. It’s no secret that Kutaragi expects the PlayStation to one day replace the PC. “For Peter,†says Xbox executive J. Allard, “this time it’s personal.â€

Then in 2000, Kutaragi started hyping what he called the “emotion engine,†the breakthrough microprocessor in PlayStation 2. He promised that it would deliver real-time graphics that would rival those of Toy Story, games that would make you cry, and DVD movie playback right out of the box. It worked: The PS2, as it was universally known, became an object of desire, and Dreamcast’s momentum ground to a halt. “What Kutaragi did to Sega is legendary,†says Andy McNamara, editor-in-chief of Game Informer magazine. It even became a verb in videogame circles: To “Dreamcast†is to use the power of nothing but a dream to crush the competition.

Bleeding money, Sega pulled the plug on Dreamcast in January 2001. From then on, it would be a company that made nothing but games -- mostly for the PS2. Moore agreed with the decision but had to fire 52 employees, many of whom he had personally recruited from Reebok. “A part of me still hurts from that experience,†he admits.

Yeah I've seen a couple of you guys say such and such got Dreamcasted. I feel kinda bad for Moore here. The battle gets even hotter.

Moore wasn’t the only one smarting from the PS2’s success. In the late 1990s, Gates was in talks with Kutaragi to include the Windows operating system in the PS2. But Kutaragi had long seen Gates as the most lethal threat to his empire. Bernie Stolar, a former Sony executive, remembers Kutaragi asking him as early as 1994 where he thought the nascent PlayStation console’s main competition would come from. Nintendo, Stolar guessed. Maybe Intel. Kutaragi looked him squarely in the eyes. “No, Bernie, you are wrong,†he said. “It is Microsoft. And I will kill them.â€

Man so Kutaragi knew since 1994 that MS would one day be his main competition. That was even before the PSone proved itself against Nintendo or Sega.

When it came out in the United States in 2001, a year after the PS2, the Xbox was technically superior. It had better lighting and sharper colors. It was easier to develop games for and had a killer launch title in Halo. But the system proved no match for PlayStation 2’s sheer momentum, helped by games like Grand Theft Auto III -- which Microsoft had passed on publishing before its creators took it to Sony.

WTF is wrong with MS? They passed on GTAIII? Man that was a big missed oppurtunity.

In one case study, Xbox and PS2 loyalists were asked to argue in front of a judge why their systems were better. The Xbox gamers based their arguments on technology: “I have 7.1 surround sound. I’m immersed in this sound, this color, this beautiful world,†one said. PS2 owners, meanwhile, were more laid-back: “It plays games, it’s simple, it works,†said one, slouched in his seat. Moore believes that the ardent fervor for Xbox actually put up barriers to growth. “We had the hard-core but nothing else,†he says.

The real danger, of course, is that the Xbox 360 won’t make enough of an impact in the crucial window before the PS3 launches. And Sony has caught Microsoft off balance once already, at the E3 trade show earlier this year in Los Angeles. Just hours before the Xbox 360 press conference across town, Kutaragi nonchalantly waltzed onto a Sony Pictures soundstage and stole the show. He announced a PS3 whose specifications were more powerful than anyone watching had expected. It would be one of the first devices to feature Blu-Ray high-definition DVD playback. And contrary to Microsoft’s belief, Sony had been shipping kits to developers so they could get started on their games. “Sony showed everyone why they are on top,†says Ubisoft president Laurent Detoc. Microsoft’s overconfidence reminds him of an old saying in French: “Don’t sell the bear’s skin before you’ve killed him.â€

Moore is undaunted. “We are not going to be Dreamcasted,†he insisted in a rousing speech to Xbox employees in September 2004. “I will not let that happen again.†Standing in front of a giant picture of Winston Churchill, quoting from the war leader’s speeches, Moore recalled the pain of losing once to Kutaragi. Question his current confidence level and he points to Sony’s corporate struggles: In September, CEO Howard Stringer announced that he would lay off 10,000 employees. The parent company’s woes may affect Kutaragi’s ability to launch the PS3 at a reasonable price. So will Microsoft win the console war and destroy Sony? Moore starts to answer and then clams up. “Those militaristic words can’t come out of my mouth,†he says with a smirk. “We operate under a consent decree from the Justice Department.â€

Even he uses the word Dreamcasted? Wow!

If he does win the battle against Kutaragi, Moore knows that his war will be about more than just videogames. The team that Microsoft has assembled for the 360 -- a tightly interwoven marketing and product design group -- could help the company solve problems in its other divisions, most notably digital music. Ballmer doesn’t rule out the idea of the Xbox team creating a design for a digital-music player and integrating it with better player software. There’s already talk that Moore could head up Microsoft’s broader entertainment strategy. First Ken Kutaragi, then Steve Jobs? “[Our team] has a lot of passion to extend beyond games,†Allard hints. “Listen, we’re not going to keep our design guys waiting around for five years with nothing to do.†Xpod, anyone?

Whoa these boys are thinking long term. First Kutaragi then Steve Jobs? That would be two huge gaints to knock off. If MS pulls that off I will dedicate myself to be a MS fanguy for life. They will be the undisputed champions of the electronic Earth. They have already passed Nintendo.

So what do you think?

Link http://www.business2.com/b2/web/articles/print/0,17925,1122948,00.html

 

[Hardknock]

I love to see these two cocky companies going at it. It'll be interesting to see who winds up on top. If there's anybody that can knock down MS it's Sony with the Playstation. And if there's anybody that can afford to knock off Sony and the Playstation, it's MS.

 

[Branduil]

Whoa these boys are thinking long term. First Kutaragi then Steve Jobs? That would be two huge gaints to knock off. If MS pulls that off I will dedicate myself to be a MS fanguy for life. They will be the undisputed champions of the electronic Earth. They have already passed Nintendo.

Really? I was unaware of their 100-million-selling handheld system.

 

[see colon]

moore should join forces with kenji eno. surely together they could beat kutaragi. or at least get his sister drunk and take embarasing pictures of her.

 

[mckmas8808]

I love to see these two cocky companies going at it. It'll be interesting to see who winds up on top. If there's anybody that can knock down MS it's Sony with the Playstation. And if there's anybody that can afford to knock off Sony and the Playstation, it's MS.

I agree. They are the only ones that can take each other out. My hairs are litterly standing up on my arm right now. I'm going to love this next-gen war. I already love debating you guys now imagine what it will be like after next-gen actually starts. The sad part is neither of these guys take Nintendo as a serious competitor.

 

[thatdude90210]

I see both Sony and MS losing money this round... fighting each other in a spec war. Meanwhile Nintendo comes along with a cheaper player with an innovative controller that leads to fresh gaming ideas, allowing them take the Japan market.

 

[BlueTsunami]

I see both Sony and MS losing money this round... fighting each other in a spec war. Meanwhile Nintendo comes along with a cheaper player with an innovative controller that leads to fresh gaming ideas, allowing them take the Japan market.

It would be cool if Nintendo could take out both giants (Sony and Microsoft) at the knees with that strategy. Nintendo is the only company were nostalgia and emotion wants me to see them succeed.

 

[Platon]

Nintendo could be a serious threat IF thy had the 3rd party support needed for that. I don't doubt that the fight between Sony and MS could give Nintendo a great chance, but they need more than that. Btw when are they launching a real next gen handheld system to compete with PSP?...

 

[Platon]

Moor can be saying what he wants, about not being dreamcasted again but they wil have to have a plan not to do it, fiery speeches will not do, on the contrary, all "this is personal" kind of thing is can get in the way and cloud his judgement...

 

[Metal]

Err neither companys CEO's intrigue me at all. Their the top geek in their nest, and nothing more. Sony's top brass seems to be going downhill, and Microsoft's never has impressed me much in their games division.

 

[mckmas8808]

Err neither companys CEO's intrigue me at all. Their the top geek in their nest, and nothing more. Sony's top brass seems to be going downhill, and Microsoft's never has impressed me much in their games division.

You can't tell me that Ken's and Moore's hardship feeling for each other doesn't wow you? It like watching a movie to me. I can just picture Ken asking Peter with his arm around his shoulder to come to the Sony area at 2005 E3 and watch the KZ video. I liked Moore's response about Ken coming to their area to play real game though. It's funny and will be a fun thing to watch. *Gets popcorn*

 

[fearsomepirate]

I hope Microsoft wins in everything so I can use their flawed, bloated, overpriced products in every facet of life. No wait, I hope Sony wins so I can use their flawed, fragile, overpriced products in every facet of life...I mean...

Crap, where's Teddy Roosevelt when you need him?

 

[dukmahsik]

I see both Sony and MS losing money this round... fighting each other in a spec war. Meanwhile Nintendo comes along with a cheaper player with an innovative controller that leads to fresh gaming ideas, allowing them take the Japan market.

also will lead to higher cases of carpal tunnel as well

 

[Gholbine]

I don't know why, but I get the feeling that Peter Moore is a total idiot, and belongs selling shoes and not consoles. I think J. Allard is a much better figure-head for Microsoft, but even he is starting to stoop to the Kuturagi/Moore level. It's disappointing.

 

[Carl B]

But Kutaragi had long seen Gates as the most lethal threat to his empire. Bernie Stolar, a former Sony executive, remembers Kutaragi asking him as early as 1994 where he thought the nascent PlayStation console’s main competition would come from. Nintendo, Stolar guessed. Maybe Intel. Kutaragi looked him squarely in the eyes. “No, Bernie, you are wrong,â€￾ he said. “It is Microsoft. And I will kill them.â€￾

LOL, man I love this quote on so many levels. The foreshadowing alone leaves me in awe - and you have to give Kutaragi credit for his powers of prescience; he truly does look at things in a 'big picture' kind of way.

Just the way he says it with a mix of utter conviction and reflection though - it's so anime! Kutaragi is like the ultimate anti-hero of the console world, having taken his video game empire from nothing to full on shogunate. And now... the prophecy has come true, and he faces Microsoft on the field of battle as he saw in a vision when he was younger. Will he fulfill his destiny and drive Moore's forces back to the gates of Redmond? Or will he lie broken on the field of battle, lamenting that his skills were not great enough to defeat the tenacious Gates and his vassal Allard?

 

[dukmahsik]

LOL, man I love this quote on so many levels. The foreshadowing alone leaves me in awe - and you have to give Kutaragi credit for his powers of prescience; he truly does look at things in a 'big picture' kind of way.

Just the way he says it with a mix of utter conviction and reflection though - it's so anime! Kutaragi is like the ultimate anti-hero of the console world, having taken his video game empire from nothing to full on shogunate. And now... the prophecy has come true, and he faces Microsoft on the field of battle as he saw in a vision when he was younger. Will he fulfill his destiny and drive Moore's forces back to the gates of Redmond? Or will he lie broken on the field of battle, lamenting that his skills were not great enough to defeat the tenacious Gates and his vassal Allard?

hey xb, it's too early for this kinda deep thinking mmmkay?

 

[Phil]

xbdestroya:

Ditto... I'm actually considering using that line in my signature, it's that good.

BTW; at the rest you posted. Maybe in years to come, they'll have video games on the battles that were fought between the mightiest empire... or they will be told in tales.. until they lived happily ever after. And the Saga continues... May the force be with you! *muahaha*

 

[Carl B]

Ditto... I'm actually considering using that line in my signature, it's that good.

BTW; at the rest you posted. Maybe in years to come, they'll have video games on the battles that were fought between the mightiest empire... or they will be told in tales.. until they lived happily ever after. And the Saga continues... May the force be with you! *muahaha*

Ok check this out, the year is 2015 and Koei releases their new historical simulation: 'Romance of the Three Consoles.'

I've actually thought a fighting game based on the characters of the console world would be pretty awesome as well, a la Street Fighter vs Marvel or something. I can already see the special moves, like Kutaragi yelling in a digitized voice: "It will have 1000 times the power!" and the whole background goes black and a rain of Cell chips comes down on the enemy,though doing minimal damage.

 

[London Geezer]

I must say, these americanised, fake Jerry-Springer-style dramatisations of real life competitors is a bit sad. But then again, i find the whole Jerry-Springer-style confrontations very pathetic and unfunny, apart some very few exceptions when things go really absurd.
Even funnier is how lots of people actually believe those things are true.

 

[Phil]

Ok check this out, the year is 2015 and Koei releases their new historical simulation: 'Romance of the Three Consoles.'

I've actually thought a fighting game based on the characters of the console world would be pretty awesome as well, a la Street Fighter vs Marvel or something. I can already see the special moves, like Kutaragi yelling in a digitized voice: "It will have 1000 times the power!" and the whole background goes black and a rain of Cell chips comes down on the enemy,though doing minimal damage.

OMG! Believe it or not, I actually wrote somethng near identical just a moment ago, before actually deleting it and refreshing the page just to see you edited the post with the exact same idea!

I can already see Kutaragi with cool black sunglasses (Kazuya style)...

*Hears Mortal Combat voice in the background...*

FIGHT!