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E3 2008: Q&A: Sony's David Reeves on 80GB PS3

European PlayStation chief discusses the decision to bring the new model to PAL territories and how it may affect sales.

At Sony's E3 2008 press conference, Sony Computer Entertainment America head Jack Tretton made a number of important announcements, including phasing out the 40GB PlayStation 3 model and replacing it with a new $399 80GB model. In addition, he announced that platinum games and a new PlayStation Video Store would be coming to North America.

SCEE CEO David Reeves.

Because most of these announcements were for North America only, European and Australian gamers had to wait until Sony Computer Entertainment Europe's (SCEE) media event later in the week for more-relevant details. We caught up with SCEE head David Reeves at this event to find out more about how the announcements will affect PAL territories.

GameSpot UK: Why have you decided to move up to the 80GB PlayStation 3 model?

David Reeves: Hard drives worldwide are a commodity just like memory sticks. I used to pay a fortune for memory sticks, even for a 64MB. Now I pay the same for a 2GB. Our strategy was very much based on the fact that we knew that the cost of a hard drive would come down. 80GB is probably cheaper now to buy than a 40GB.

Secondly, we know that people want more storage--that's a fact. Thirdly, we know that having higher capacity helps. If the Japanese say to us, "We'll give you the 80GB model at the same price as the 40GB model," are you going to say no? No, you're not, and we said "OK," and that's what we're going to do. They're already produced and they're on the boat to Australia, Europe, and to the UK. It was a no-brainer, and we thought that doubling the capacity with the same specs and the same price was probably a good way to go.

GS UK: What's the incentive to buy a 40GB PlayStation 3, given that there's no price reduction?

DR: Well there's virtually no 40GB models left. You'll probably find that you'll have to scrape around going from shop to shop to even find a PS3, even now. Now when you come to August 27, all you'll find is an 80GB model. So we have planned this, seriously, for the last eight months, and we've run down the stocks of the 40GB knowing we will introduce the 80GB. If the 40GB is still there we will add a piece of software or an extra DualShock 3 [controller] to it to move it through, and we say good-bye to the 40GB, hello to the 80GB.

Australia, I think they have a few more 40GB [models] than others, but they have some promotions in place to move them through.

GS UK: The Nintendo Wii is selling well, and Microsoft has announced price cuts for the Xbox 360 in America, in the UK, and in Australia. Given this, will additional hard drive capacity make any difference to PS3 sales?

DR: No, it's all planned in. We know what the PS3 sales will be. We're not expecting a dramatic uplift against our forecast because we knew that the 80GB was coming. I think the bigger enticement will be the [new software] titles.

GS UK: At the Microsoft press conference, Don Mattrick said that the Xbox 360 will sell more units this generation than the PS3.

DR: They won't in Japan. They won't in the PAL territories. So the deciding factor is North America, and that I can't comment on. I just don't know the figures. But I agree with Kaz [Hirai]. I think over a 10-year life cycle... I don't see it.

166 Comments

  • Bim-23k

    Posted Aug 2, 2008 5:53 am AEST

    Nice going Sony!. Should win more hearts with this.

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  • spikespeedle

    Posted Jul 30, 2008 8:27 am AEST

    Well i work in a game store in the U.K in Oxford and PS3's are always running out of stock here, so to those of you who think he was talking rubbish do your research. Recently we have had a large amount of people trading in their 360's because even though they have more choice of games , the games are not necessarily amazing and worth £50. So people are now switching because they get the blu-ray and they get a console that doesn't constantly show them 3 sodding rings and the price in games doesn't dither so it seems like a better option now.

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  • world69star69

    Posted Jul 29, 2008 10:36 pm AEST

    It really makes no difference to me. I already bought my 40gb model, but today my 320gb samsung 2.5 in. hard drive came in from newegg, only spent $99 on it ($85 for the 250 so i spent the extra money) and installed it now i have a 320gb ps3! Only problem now is what can i do with that 40gb drive laying around? Can't put it in my laptop, (it says it won;t work in laptops, but i doubt that as its identical to the new hd i got) my laptop uses the old pata format. Can't use it in my pc as it has laptop connects not desktop...oh well.

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  • king_bobo

    Posted Jul 28, 2008 11:12 pm AEST

    This kind of annoys me considering how recently I bought my 40 GB PS3. At the same time, I think it's nice that their being honest about why they decided to change it and saying that it's not because they think it will boost sales. Still, I can't help but wonder why they didn't tell us earlier - then I would have waited.

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  • ericbarsenas

    Posted Jul 27, 2008 9:51 pm AEST

    ok first off i would like to say i own a original 60 gig and its the best of all the systems cause of the backwards compatibility i got some greatt ps2 games that work fantastic i even have a dualshock 3 and some of the games support the rumble like gow2 this the better of all the systems if they want to upgrade a system it should be the 60 gig with all its features including ps2 compatible and the 4 usb ports sony is good with the 80 gig but they should make it like the 60 i even put a 320 gig hard drive and its even more sweet but seriously make the 80 like the 60 gig

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  • shrolag

    Posted Jul 27, 2008 1:40 am AEST

    the pal version of 80gb is exactly same as 40gb model, so no backwards comp for ps2 games, so no point to me, i got 40gb one and put in a 320gb HDD next day, and ill use my ps2 for ps2 games lol

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  • kavadias1981

    Posted Jul 25, 2008 12:23 am AEST

    I think he is right. Over a 10-year life cycle the PS3 will more than likely overtake the 360. Especially with Blue-Ray becoming more commonplace and with developers getting a better grasp on... well, developing for it.

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  • ps3thabest

    Posted Jul 24, 2008 8:30 am AEST

    360 always talk crap and cant back it up they will fall

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  • notquitesure

    Posted Jul 23, 2008 1:31 pm AEST

    woundstring...

    they have to announce it at some point and its just bad luck that you got yours when you did. they call that life and i think you need to get over it.

    you sound like a scrounger and just be happy with what you've got!

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  • Woundstring

    Posted Jul 23, 2008 7:04 am AEST

    SONY...it seems they are economical with the truth to get your money sooner.

    David Reeves said July 19th 2008:

    "So we have planned this, seriously, for the last eight months, and we've run down the stocks of the 40GB knowing we will introduce the 80GB".

    David Reeves Also said on July 17th 2007:

    “If you're going to double it, it's worth it. So maybe you'll see something a little bit later, but 60 and 80, really not much difference"

    So, Having convinced myself they were going to bring out an 80gb model last year..I crumbled and decided 12 of July to go buy the 40gb..telling myself to just do it.. and finaly thinking about how repeatedly we were told by sony that the 80gb would not be seen in europe, then 5 days later they announce the 80gb...how pissed am I?

    Sony..I love the machine, I love the 4 good game exclusives, I hate the being ripped off.

    When Microsoft dropped their original xbox price twice, they gave controllers and games away to everyone who paid the pre-discounted price around the time of the price change...why is sony not doing this.

    I have a Sony 52" LCD, a Sony dvd hdd recorder, a playstation 3 40gb..grrh, a playstation 2, a sony psp and a sony ericson phone...I like the stuff, but why do you bite the hand that feeds you sony?

    Ahh, I know...they are suit wearing d'cks...thats why.

    So, I guess I am just gonna go buy a 200gb 7200 2.5 hard drive..this way its not so bad, I bought the Dualshock 3 at a good discount..again..not so bad and a good game bundle deal..best around...thanks mr retailer. But, it would have been nice to know I didn't have to go out within 2 weeks of buying to get more storage..the 80gb would have stalled an upgrade for a while. Plus, if they include a dualshock 3 with the 80gb..which has not been stated yet, thats a bit of a kick in the teeth also..so. I'm hoping they dont..as it will just piss me off more.

    Ok, got that off my chest, now I am gonna go buy that bigger hard drive n download Warhawk..the 5th good exclusive.

    Sony...come on, give us some kind of freebie since we just bought the old 40gb, come on..freebies are good. An extra controller, a new game voucher..a £20 discount for play tv or something...feel the love.

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  • MattchewJ

    Posted Jul 23, 2008 2:49 am AEST

    Good news however this is what I would want from Sony:

    If this new 80GB PAL PS3 has the newer processor, can play old PS2/PS1 games, includes a DualShock3 controller and comes in a Metal Gear Solid 4 bundle I WILL buy one!

    If not I'm not interested. Anyone else feel this way?

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  • brantothehizzam

    Posted Jul 22, 2008 2:52 pm AEST

    Its just a 40gig with double the memory. Its not the same as the current 80gig model with all the bells and whistles.

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  • xxlionxx

    Posted Jul 22, 2008 2:15 pm AEST

    Thats why I bought 2 year warranty to my 40gb at bestbuy, the day the 40gb are gone I will say its broken then they will give me the 80gb. But does any one if the warranty at bestbuy will be over if they give me a new one? even if I have 1 year and a half more? And does any one if it is just the 40gb with double storage capacity, no backwards compability, no SD slots, 2 USB ports just like the 40gb model? Or will be the actual 80gb model?

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  • Chris_555_TK

    Posted Jul 22, 2008 11:59 am AEST

    The Wii has BC and so does the 360. Why is this being REMOVED from the PS3?

    @Nightrain 76
    People still like to play older games. That's why retro games are still VERY popular. You should take a peek at life outside your tiny world once in a while. You'll learn that nothing revolves around you.

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  • Nightrain76

    Posted Jul 22, 2008 11:23 am AEST

    "I won't buy a PS3 unless I can play PS1 and PS2 games on it"

    Booo hoooo. You can't be serious dude. Stop living in the past. Either that or your an XBOX fanboy. Either way, you need help.

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  • superjon6

    Posted Jul 22, 2008 10:24 am AEST

    I won't buy a PS3 unless I can play PS1 and PS2 games on it

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  • rockutd

    Posted Jul 22, 2008 9:30 am AEST

    Well i think thats a pretty msart move by sony.Maybe a $50 price cut could really hammer the nails in the 360's coffin...

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  • liam82517

    Posted Jul 21, 2008 8:41 pm AEST

    talking guff buddy PS3 has never been sold out in the UK not even on launch day!

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  • DiscGuru101

    Posted Jul 21, 2008 7:28 pm AEST

    "You'll probably find that you'll have to scrape around going from shop to shop to even find a (40GB)PS3, even now."

    -Wrong. Check out Amazon.com or every single game store in Northern California. Are 40GB PS3's really in such high demand in the EU?

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  • mandeepsingh100

    Posted Jul 21, 2008 6:38 pm AEST

    i took out my 40GB hard drive and got a 250GB hard drive inside my ps3 so i will never have to upgrade even 80GB (well 65GB in reality) would get filled up pretty quickly with demos videos etc

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  • AgileNate

    Posted Jul 21, 2008 6:14 pm AEST

    The PS3 will be outdated with that 10-year life cycle considering everyone including Sony will have a new console available. I am close to buying a PS3 but I want a price cut not added storage.

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  • Ace132

    Posted Jul 21, 2008 5:33 pm AEST

    GS UK: At the Microsoft press conference, Don Mattrick said that the Xbox 360 will sell more units this generation than the PS3.

    DR: They won't in Japan. They won't in the PAL territories. So the deciding factor is North America, and that I can't comment on. I just don't know the figures. But I agree with Kaz [Hirai]. I think over a 10-year life cycle... I don't see it. __

    lol.PS3 ftw

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  • normsta

    Posted Jul 21, 2008 5:11 pm AEST

    @tyzwain

    just switch the harddrive inside of your ps3 with a 250 gb harddrive.

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  • r4v3gl0ry

    Posted Jul 21, 2008 5:10 pm AEST

    Untapped potential and a 10 year plan give Sony a good chance of winning, but we'll just have to wait and see.

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  • dcmdream

    Posted Jul 21, 2008 2:45 pm AEST

    Thanks evergrant2

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  • evergrant2

    Posted Jul 21, 2008 2:35 pm AEST

    it is around 65-67gbs of free space

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  • dcmdream

    Posted Jul 21, 2008 1:40 pm AEST

    Hey , can someone answer this ?
    How many gigs of the 80gig model are actually free to use when you buy a brand new console. I heard it was around 65 gigs...is this true?

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  • Foppe_

    Posted Jul 21, 2008 1:26 pm AEST

    Suddenly he understands that Europe wants more storage...
    It was a big nono back in the days when Europe wanted the old 80GB SKU...

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  • tyzwain

    Posted Jul 21, 2008 1:16 pm AEST

    80gb looks cool, but Im happy with my 60gb one with B/C. If i want more space I can get a 100GB USB storage device for £40

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  • internationaal

    Posted Jul 21, 2008 12:21 pm AEST

    @clevelandrox23
    The PS2 (or more the fact that there are still games being released for it) means that if you own one and buy a PS3, you can give the PS2 to your kids as there are still games for it.

    If you owned a Xbox... short after the 360 release no games were released.

    So I think Sony's strategy is better than Microsoft's. Sure, but stopping game releases for the Xbox, people will easier upgrade to a 360. But on the other hand: if somebody bought the Xbox a year before the 360's release, well, they bought a console with one hell of a short lifespan!

    (ps: halosniper52: NA comes third in number of inhabitants, 300M, but europe as a whole has 500M inhabitants...)

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  • lanista

    Posted Jul 21, 2008 12:19 pm AEST

    PS2
    4 March 2000 Japan
    26 October 2000 USA
    24 November 2000 EU
    30 November 2000 Aus

    PS3
    11 November 2006 Japan
    17 November 2006 USA
    23 March 2007 EU/Aus

    So from PS2 to PS3 is as follows

    6.7 years for Japan
    6 years for USA
    6.3 years for EU/Aus

    And as the PS2 is still on sale, it's lifecycle hasn't yet ended...

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  • SantaisSatan

    Posted Jul 21, 2008 11:59 am AEST

    @Guzhead

    HUH!?! You got an LCD TV and the 360 isn't good enough for it? What does that even mean? You do realize that the 360 is HD too...right?

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  • JetMoto6

    Posted Jul 21, 2008 11:50 am AEST

    Maybe they are trying to trick consumers into thinking that this is the "real" 80GB PS3 with BC?

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  • akiwak

    Posted Jul 21, 2008 11:45 am AEST

    @ dotwithshoes PS2 launched March 2000(Japan)November2000(US) and PS3 launched November2006. That makes 6 years. Can you count?

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  • mjax211

    Posted Jul 21, 2008 10:30 am AEST

    Why won't the world just let me have a backwards compatible ps3? I don't understand. All I want, is a ps3, with backwards compatibility. Why are they bent on destroying this? Why?

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  • clevelandrox23

    Posted Jul 21, 2008 10:02 am AEST

    A 10 year span doesn't really matter by then new consoles should be out for both microsoft and sony. Sony keeps boasting about the PS2 and its sales. I guess for a family that wants a cheap system its sweet. But for a person who wants a great system with great games then it does not help.

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  • guzhead

    Posted Jul 21, 2008 9:58 am AEST

    At some point I have owned all three systems. I just reacently got the PS3 MGS4 bundle and I love the system. I also just reacently got rid of my 360. Sure it was a good system with many games but the fact of the matter is I'm shopping for a LCD TV now and a 360 just dosen't cut it. Sony has the best hardware configuration all they nead are more games and they are getting much of that this year.

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  • Somebody89

    Posted Jul 21, 2008 9:52 am AEST

    Hey Reeves I can disagree with you about there being virtually no 40 gigs out there. Pretty much all of the electronic stores I have been to there have been some 40 gigs. Unless your talking about the MGS4 bundle then I think that you are wrong.

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  • dotWithShoes

    Posted Jul 21, 2008 9:26 am AEST

    blancobo, the ps3 came out 5 years after the ps2 not 6.

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  • blancobo

    Posted Jul 21, 2008 9:00 am AEST

    It is funny... that last comment about the 10 yr life cycle. Sales are much more important right now than in the next 4 yrs. Based on the way technology is moving, the PS2 was a hit in 2001, six yrs later there was the PS3 ( the 360 launched a year earlier)... the only way this makes sense is if the PS3 is sold as a BD player and a LOT of software titles are also backed up from the get go. What is hardware without software? (JUNK). In the end... the PS3 should focus on profit YES, but also on lowering the price point (flood the market with PS3's) and software will follow. What is the commitment to developers like Insomniac, Revolution, Konami, Ninja Theory, Naughty Dog, to name a few, if the expectations for sales are looked upon a 10 yr span. These guys have invested millions in their software titles and they are expecting revenues from sales NOW. Ten yrs (actually 8rs from now they will be worth 10-20 bucks in GStop). There is something in the reasoning that does not add aup.
    I am a PS sponsor by experience, but objective analysis can never be compromised and these arguments do not add up.

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  • metalgear-s

    Posted Jul 21, 2008 8:31 am AEST

    Look, the PS3 just is the best console out there and people will have to start realising that by now. The hardware is clearly the best (and most reliable, too) and MGS4 was the start to a list of amazing PS3 exclusives coming up. The Xbox360 will lose out, it's just a matter of time.

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  • Anabub

    Posted Jul 21, 2008 8:22 am AEST

    LOL where did he pluck this from "DR: Well there's virtually no 40GB models left." I know I could go into any shop now and find one easy as you like. But the one we want the 60gb with BC now thats what we really wanted. A shame because it's a great console and I want one but they are just far too much it's not as if we couldn't fit a bigger drive if we wanted to.

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  • FlashCharge posted Jul 21, 2008 7:57 am AEST (does not meet display criteria. login to show)

    FlashCharge

    Posted Jul 21, 2008 7:57 am AEST (hide)

    What console has the fewest hardware failure, PLAYSTATION. With added hard disk space and if it were BC the new 80G is enticing. Games will come and at least Sony has a 10 plan which is good on the pocketbook. The industry will change in 10 years so look ahead.

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  • LaniReaper

    Posted Jul 21, 2008 7:51 am AEST

    Sony seems to be doing their normal thing; looking at things, writing it all down, then quietly overwriting the parts they don't like.

    40Gb becoming 80Gb at no extra price is really nice and all, but I wonder if it'll be enough? As much as I love my PS3, if you didn't buy one within a few weeks of launch, you probably don't mind waiting for the price drop to get one, if ever. And, if you got your PS3 close to the launch date in Europe or Australia, you probably got the 60Gb anyway. The fact that you can upgrade your PS3's harddrive yourself also makes this announcement seem a bit... dumb.

    I can confirm what he said about 40Gb PS3s, though... you find a few, but not all that many. They aren't as rare as, I dunno, Wii Fit or anything, though. Not by far.

    Good luck, Sony. You're gonna need it to shift more PS3s. Which is a shame; they're great consoles.

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  • bleat

    Posted Jul 21, 2008 7:19 am AEST

    I think he's talking about Europe, not North America, when he says you can't find a 40G PS3. Of course unless you live in Europe, you can't confirm this.

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  • AranJatt

    Posted Jul 21, 2008 7:16 am AEST

    @ mark_unix
    lmao

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  • mark_unix

    Posted Jul 21, 2008 7:07 am AEST

    at microsoft you still pay a fortune for 64mb...

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