Sony's phenomenon - PlayStation2 has over 50 million users worldwide

In an exclusive interview with MALCOLM J. NAUDI, Sony Computer Entertainment Europe president Chris Deering reviews a record year, with plenty to look forward to, including broadband Internet gaming coming to Malta in 2004

With over 50 million PlayStation2 game consoles installed worldwide, Chris Deering, president of Sony Computer Entertainment Europe (SCEE), is confident that this will be a record year for his division.

"PlayStation2 has passed the 17 million mark in installed base in PAL TV territories which comprise the SCEE," he said. "Western Europe is about 90 per cent of this, with the remainder in Australia, New Zealand, the Middle East, Eastern Europe, Russia and Africa.

"Japan has passed 13 million and the United States has passed the 21 million mark. By the end of December, only 37 months after its launch, we expect to have more than 20 million PS2 users within SCEE."

Mr Deering said this compares to 'lifetime' SCEE sales of PlayStation One of 38 million in eight years. "We expect ultimate sales of PS One to reach 40 million and, on PS2, 50 million."

He is similarly upbeat about PlayStation sales in Malta, where it has been marketed since 1996. FGL Information and Technology Limited, a subsidiary of the Forestals Group, reports that PS2 installed base exceeds 8,000 with sales of a further 2,000 projected by year end. PS One installed base is above 35,000, one of the highest household penetration rates in Europe.

PlayStation2 is not just a success compared to PS One but also compared to two other consoles that are its direct competitors: Xbox and GameCube. "PS2 installed base is four times the combined sell through of Xbox and GameCube, and the gap is widening," Mr Deering said.

The major casualties have been Sega and Nintendo: "Sega is a highly respected, increasingly successful game publisher. They got out of game console manufacturing, but they are very much in the game.

"Nintendo has a smaller but growing share of new gen(eration) TV-based consoles, and a huge share of the market in handheld gaming devices and software. Nintendo has a great base of game creators and fans. They will be around for a long time."

He conceded, though, that "new systems bring freshness and vitality to the industry, keep the original players on their toes, and grow the market for all.

"All competitors are taken seriously. However, Sony and PlayStation understand what consumers expect in the living room." In a reference to Microsoft chief architect Bill Gates' intentions to dominate the living room, Mr Deering said customers "want something a lot simpler, faster and less complicated than what PC-based systems offer.

"Sony has the ability to deliver a unique, exciting experience for social viewing, and PlayStation has the games that people want most to play."

Following a decade of experience in making films, television shows, music and games, Mr Deering believes Sony has the edge over Microsoft in the battle for hearts and minds. "Consumers think of Sony when they think of fun things. At PlayStation, 'Play' is our first name. We are not a 'work'station.

"SCEE has many consumer-facing activities like the football Champion's League, consumer experiences at venues, and a history of friendly and challenging advertising. We have a more open system for game creators, both offline and online."

Being so far ahead of the competition means that Sony is the prime target everyone is out to get. "It is simplistic to define the world as a head-on collision between Sony and big company competitors. Product lines come from different backgrounds, as do company images.

"And Sony doesn't want to dominate its consumers' lives or keep track of their habits. We just want them to have fun. I think that families respect that."

The Sony Computer Entertainment division faces "a very bright future", despite the negative coming out of its parent company Sony. Mr Deering said Sony has been "dealing with many of the same problems that many Japanese companies have faced and are still facing in recent years with costs and Asian competitors. They are confronting these issues with determination and urgency.

"The combination of technology, content creation, and marketing skills that Sony has on a global basis will shine through and triumph, with PlayStation a younger, newer, leaner part of Sony.

Turning to software, Mr Deering said: "Film franchises are in evidence across many PlayStation games, and all games will become more cinematic as technology evolves. The big new trends will be more diverse input devices such as EyeToy cameras and SingStar microphones that free the player from hand controllers and keyboards.

"The technology of the future will allow games to get much richer in terms of story lines, mystery and intrigue, as well as more fun to play and to look at."

The EyeToy: Play software has sold over a million copies since its European release four months ago. This consists of 12 crazy games covering a variety of subjects from living room football to do-it-yourself Kung Fu and robot boxing.

In each of these games the player takes centre stage since, via the EyeToy camera, the player's image is broadcast through the TV within the game itself. The player's body movement in front of the camera determines the course of events in the game. For the first time the player really is the star of the show.

Mr Deering pointed out that although the average age of PS2 is in the early 20s, the most frequent age of 'use' is "about 14". This, he said, "is slightly older than the PS One user profile today, but about the same as the PS One was after three years.

"As gamers get older and have kids, they still play themselves, so the market is always expanding. Older users with more spending money will be offered all kinds of new products in the future to enhance their home entertainment facilities using PlayStation computer power, navigational friendliness and style."

Although females are not normally listed as console 'owners', who tend to be male, Mr Deering considers females to be "very big gamers in their own right. EyeToy: Groove, our new camera-based dance game, is particularly popular with the girls, but they also like sports, beat 'em ups and driving games, too."

Looking ahead he says the global outlook is "robust" as on-line gaming starts to gain traction with more broadband homes connected, and new game concepts, such as the EyeToy expanding the target market for computer entertainment.

"Even though PS2 plays DVD movies, PS2 users are buying more software than PS One users did at the same point in the system's life. On average, there are over six games sold for every PS2, versus just over five games for PS One at the end of the third full year."

The new features offered on PlayStation Network Gaming are, according to Mr Deering, "awesome". They include a private VIP station on your TV, and sports, driving and team-based mission games are driving broadband uptake in homes.

"Soon we will have GT4 on-line, a fantastic new on-line football game, and many more, with forums, buddy lists, and all kinds of competitions," he said, adding: "Malta is on the expansion list for 2004.

"PlayStation on-line gaming only started this summer, but has thousands and thousands of fans already. Everquest, the most popular multiplayer real time game in the world, is now also on PS2 for living room play on-line.

"Socom 2 is now taking the US by storm, and is coming to Europe in early 2004. And there are some really exciting developments for EyeToy on-line. Watch this space!"