Peter Moore Recalls Sony Announcing PS3 Price Point of $599: We Were All Partying Backstage

“We knew then that we had the opportunity to get ahead.”

Posted By | On 03rd, Jul. 2015 Under News | Follow This Author @GamingBoltTweet

peter moore

The last gen console cycle was a complete opposite of the current gen. Sony literally struggled with the PlayStation 3 for the first few years with some terrible PR decisions and lack of quality games. But the biggest difference between the PS3 and Xbox 360 was the price point. Sony literally shot themselves in the foot when they announced that the PS3 will retail for $599.

In an interview conducted by IGN, former Xbox boss Peter Moore recalled his experience on positioning the Xbox 360 as a living entertainment experience powered by human energy and how happy they were when Sony announced a higher price point compared to Xbox 360.

“First we needed to get the name right for the damn thing and then we needed to get the spec right and then we needed to get the controller right and then we need to get the marketing right. We needed to position and we needed to position it in a unique way.”

“The line we came up with was the Xbox 360 is a living entertainment experience powered by human energy and that may sound like marketing BS to you. The human element manifests in Xbox Live but this living entertainment experience was going to be bigger than games. Games was at the core but it’s going to play music and eventually you are going to play movies on it and this was the difference. We needed to get out first, we needed to get our price point right, we need to get our launch portfolio powerful, we need to get away from being a shooter box which was a challenge. We needed to be more inviting so we came up with a tag line called Jump In.”

“I also remember E3 [2006] when Jack Tretton and Kaz Hirai announced $599 and we were all back stage, partying…hooo hoo! We knew then that we had the opportunity to get ahead, drive ahead and get our games ahead and get the lead. And I said the first to get to 10 million wins.”

However, Phil Spencer and the team at Microsoft just repeated what Sony did back during E3 2006 as he humorously acknowledged it. “And that backlash we had two years ago…did’nt we [laughs]?…that was the opposite feeling there.”

I guess, both companies are even now.

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  • Riggerto

    And then…


    • bigshynepo

      Yeah, half the reason XboX 360 sold so well last gen was that people needed to buy 2-3 replacements to keep gaming. If RROD happened in this day and age, it would be a major class action. I mean, if we’re suing over graphics now, surely we’d be suing over faulty consoles.

    • andy

      Don’t forget the disc scratching thing, its the ONE extra special benefit of playing 360 games on Xbone that nobody, especially hardcore fans, even thought of. You don’t have to worry about that mid 90s, PC tray loading, Xbox 360 dvd drive, scratching your games beyond believe. Even the 2 revised 360 consoles still came loaded with these pieces of crap. Even the Slim PS2 didn’t use these kind of drives.
      Now in Xbone and thanks to the Bluray slot loaded drive, a 360 game can finally be played with no fear added.

    • Nick

      I went through 4 my fifth one is the one I still have.

    • TraceSkipper

      Four hey? I still have all my ps3 (3) and they are still working.

    • ShoNuff

      3 PS ones, 11 ps2’s, 2 ps3’s, 1 ps4, 1 OG Xbox, 3 Xbox 360’s, 1 Xbox one, 1 nes, 1 snes, 1 n64 , 1 GameCube, 1 Wii (still haven’t gotten wiiu), 1 master system, 1 Genesis, 1 Saturn, 1 Dreamcast. They just don’t make systems like Nintendo and sega do/did.

    • Fayz VI

      there was a 3 year warranty on the old versions of 360s that were rrod prone, it didn’t increase sales muppet.


      Pretty sure that if you were to “buy” another system that would be considered increasing sales.

      If someone buys one and then has to buy another and another……..and so on……….. Kinda makes sense to me.

      When I was on one of my many deployments I saw so many dead Xbox 360’s. Everyone scammering to get another one sent to have that one fail in a few months. Seriously has to be something wrong with a person that keeps on buying into the fail that the system truly was.

    • Fayz VI

      no it wouldn’t increase it at all. people were just sending it to ms to get a refurb back.

    • Christian Dixon

      What about all the people that bought used 360’s from pawn shops and other stores? When their 360’s burnt out they didn’t have warranty coverage so they would have HAD to go buy another console, hence upping the number of sales due to faulty consoles.


      more like they just outright bought a new one……. like lemming sheep following the sorry masses.

    • Fayz VI

      Sony has given you 10 cents for your support. Don’t spend it all at once now.


      We’re talking about Sony here? GTFO yourself guy……. 360 failure rate is not something you can change. Even though you feel it is necessary to do damage control for Microlo$t.


      Just stay away from the green kool-aid…..!!

    • bigshynepo

      Only 60% of the failures were eligible for an RRoD exchange/warranty extension, do some reading before you come in here making a fool out of yourself.

    • ShoNuff

      But a new system was 3-400$ and out of warranty they fixed it for a $100. Pretty sure that was a no brainer.

    • bigshynepo

      Good point, but we all know people who have gone through up to 4-5 Xbox 360s and we all know they weren’t ALL warranty, so what more is there to say? High failure rates boosted sales, end of discussion.

    • Fayz VI

      ps3 sucked, xbox 360 won last gen, try not to cry about it.

    • bigshynepo

      “Less prone”, I like that.

      Here’s all the proof I need to back up my point, if you can even read: https:// www . squaretrade . com/htm/pdf/SquareTrade_Xbox360_PS3_Wii_Reliability_0809.pdf

      The rest of your post just sounds like a ‘you’ problem; have fun clinging to the remnants of a ‘last gen win’. I don’t recall anyone last gen saying “but..but..but..PS2 sold teh mostz!” but I guess Playstation owners are just classier than that.

    • Christian Dixon

      There wasn’t a three year warranty on any 360…ever. There wasn’t even a 1 year warranty until they got sued.

  • Psionicinversion

    Ps3 manufacturing cost about $1000.

    • bigshynepo

      The PS3 may have lost the console war last generation but Sony won the format war with Microsoft because of it.
      Sony may have had a rough go with the first few years of PS3 but how much of a write down did Microsoft and Paramount take over the HD-DVD failure?

    • Kayser

      Actually the format war was between sony and toshiba .

    • bigshynepo

      HD-DVD was based on a WMV codec owned by Microsoft. The details of all that can be googled.
      Toshiba had the biggest hardware manufacturer stake in HD-DVD but like Sony with Blu-ray, Microsoft had all the royalties to gain if it took hold in the market place.
      That and the next-gen Sony machine would’ve likely been forced to use HD-DVD like the Xbox One was forced to use Blu-ray…that is a lot of disc royalty money.

    • Kayser

      but it was an add on for watching movies , sony on the other hand was built in for movies and games .
      also toshiba is the main competitor for hd war on movies , but warner bros back in 2008 picked exclusively for Blu-ray so hd-dvd was dead and 6 months later Toshiba released a Blu-ray player .

    • *Also On PC

      Panasonic owns 80% of the patents on Blu-Ray and gets the same revenue. Sony only owns a fraction of it as part of the other 20 blu-ray association companies.

      Then Digital downloading and streaming came in and annhilated blu-ray profits.

      Talk about your pyrrhic victory. But then it shows how starved of games Sonydrones still are since they have to talk about the Blu-Ray player. How’s the replay value of Talledega Nights?

    • bigshynepo

      Anyone using that avatar can go throw themselves in a woodchipper.

      You clearly know nothing about the financials at play regarding the blu-ray format. Sony owned many of the original blu-ray manufacturing lines, the discussion you’re trying to have goes so much farther than you likely can comprehend. I was in the industry and it was still hard to have an informed discussion with colleagues about the vested interests in the HD format war, let alone trying to talk to nobodies on the internet about it.

      How’s Batman: Arkham Knights working out for you?

    • *Also On PC

      It will be better than the POS4 version is fixed.

      Oh and how’s that unemployment going since Digital Downloads destroyed Blu-Ray? :^)

    • Psionicinversion

      dunno but it sure hasnt taken a dent out of MS. Nearly killed sony though

    • bigshynepo

      I would say Sony’s major misteps in the mobile market hurt them more than any pricing strategy for PS3. Currently, Xbox, in it’s current form, seems to be in a more precarious position of being folding into Windows, which would suck.

    • Psionicinversion

      no it wont suck theres many advantages to it. Fact is there are lots of console only gamers and lots of PC only gamers so putting MS xbox exclusives on PC means they can potentially earn more money. Im not reading the link because its been covered and argued to death for weeks and its only a good thing.

      Sony guys may laugh but lets face it how is it any different if they started putting PS4 games on PSNow and playing it through a samsung TV or little set top box???

    • XbotMK1

      You’re delusional if you think the PS3 nearly killed Sony. Nothing more needs to be said. You’re a moron.

    • Psionicinversion

      because losing billions that they cant afford to lose was saving them??? its ok dont need to worry about Xbox one dude because it might depress you to know MS has nearly $100billion in cash…….

    • XbotMK1

      You obviously don’t know how these corporations work.

      Where in the world are coming up with your horse sh*t lies? “losing billions that they can’t afford” In 2006, Sony had 90 billion in assets and billions of cash on hand. The PS3 did not even come close to bankrupting Sony.

      What does Microsoft’s money have to do with anything that we’re debating?

    • Psionicinversion

      sony have about $14billion in cash apparently but they lose money every year so that stock pile is going down added to the fact there selling stuff off means they have less and less assets

    • Fayz VI

      sony are broke & ms aren’t tho… try harder.

    • XbotMK1

      Microsoft lost an estimated 5 billion dollars from the original Xbox which is why it only had a 4 year lifespan.

      Microsoft invested a lot of money in to Toshiba’s HD DVD project. That money ended up going down the toilet.

      Then Microsoft lost a ton of money from manufacturing costs of the HD DVD drive which they made because they were afraid of Sony’s Blu Ray tech in the PS3.

      Then they lost 1.2 billion on the Xbox 360 Red Ring of Death.

      If it wasn’t for Microsoft ripping off their customers with the Xbox Live subscriptions, the Xbox 360 might not have been profitable.

      The Xbox One hasn’t made a profit yet.

      Sony shot themselves in the foot last gen because they delayed the launch of the PS3 by a year and they thought people really cared about backwards compatibility.

    • HAppY_KrAToS

      If you don’t count the 20-30 million xbox360 that:
      -Got replaced by Microsoft, because of RROD, SCRATCHING DISCS, OVERHEATING,ETC ETC, 2,3,4,5+ times
      – fans bought a 2nd, 3rd, 4th x360, as they kept dying over and over, out of warranty
      – millions x360 were bought after Microsoft bricked the modded consoles that went online
      – millions gamers (at work, I knew at least 4-5 guys that did it) that bought a 2nd x360 to play pirated downloaded games and kept the 1st one untouched, to be able to play online
      -etc etc….

      Then, there were only like 40-45 million unique x360 owners, vs the +80 millions that Microsoft kept boasting.
      That’s why there are only around 30 million X box live gold subscribers.

      Microsoft lied to all fans, by rushing and releasing the worst electronic device ever, with almost 55% failure rate (average on electronics is around 2.5%), with the help of big websites like ign, gamespot, etc, that kept silent regarding those severe issues, so fans, parents and kids kept on buying the American product (x360), instead of buying a future -proof rock solid ps3.

      Still today, those websites still praise the Microsoft systems, and will bash ,trash Sony and the ps3, anytime there is an opportunity (a ps4 game that has 2 frame drops during 20 hours of game play, and there we get, some articles saying that the ps4 this and the ps4 that, while the xbox one .. blah blah blah), just to make the x1 look better.

      Still today, when 100% of gamers , even Microsoft fans, do admit the ps4 is indeed the best console, most powerful, with better graphics, more power (hey, as an exemple, a tomb raider remaster runs at 60fps on ps4 vs 30 on x1…that simply means the ps4 is using more than the power of TWO xbox1, to run the game), but not a single one of those websites dare admiting THAT YES, the ps4 IS the next gen system to buy.. no, they simply can’t accept that.
      Even if the ps4 sells 50 million units vs 20 million x1, even if graphics are 3 times better, never will those patriotic websites say that the foreigner ps4 is better than the national x1. Never.
      Just like they have hidden the rrod issues, they will lie and ask people to rather buy an x1, because it’s better…
      And then, those websites give scores like 7.5/10 to games like TLOU. ..

    • Fayz VI

      are you crying? the xbox 360 was a great system, it really did win last gen, type less & have a tissue

    • Darren McCoy

      Erm I think you’ll find the Wii won last gen!

    • HAppY_KrAToS

      In your head only, it won.
      Have a tissue too, too much sand, there..

    • John Marston

      If there were only 40 million unique 360 owners because of the RROD then why did almost all multiplatform games sell better on the 360? If your hardware numbers were accurate, then the 360 has by far the highest software attach rate of any console in history.

    • HAppY_KrAToS

      Games sold better because the US press kept praising the X box brand, even when they knew people would be buying a ready-to-die console that would die a few weeks after the purchase.

      If you don’t remember how the press had been harsh with Sony, just look at the behavior when The order 1886 was going to be released, on ps4: everybody and his dog wanted to publish their 2/10 score/review.

      Just look how the x1 launch titles got praised, to make the system look fantastic, and look at the 4/10 scores all the ps4 exclusive titles have received… from killzone to knack, for sure they didn’t miss them.

      I just finished knack, a few weeks ago, and the game was pretty solid, with nice graphics and a cool story. Easily a 8/10 score, but never, never, the 3/10 the press gave it.

      I could write 10000 words to explain why the X box had the best multiplatforms (by a small margin), but one can’t argue with an X box fan.
      Do you remember the visual parity stuff, that forced devs to make the x360 version at least as good as the ps3 version…? For sure, you don’t remember that…

    • HAppY_KrAToS

      Also, just like Microsoft decided to be in the game industry, only to not let Sony be alone in people’s ‘living-room’, they supported the hd-dvd format, only to not let Sony/others hd format win.

      Because if it was a matter of money, they would just need to sell office or windows like $5 more, and that alone would bring 10 times more cash than the xbox division.
      But NO.

      It must be really painful, every time they must send some millions $ to Sony bank account, for the bluray royalties ..

  • zx5

    didn’t xbox cost $500? and then $50 for live with no wifi.

    • Kayser

      no it was 400 for the 20gb and the 300 for none hard rive .
      that was back in 2005 .

  • XbotMK1

    The difference between last gen and this gen:

    Last gen,

    The PS3 had free online multiplayer. Microsoft lied to their customers and charged $60 a year for online multiplayer and offered nothing in return. Microsoft even locked TV apps behind their paywall. Microsoft scammed their customers until PS+ brought Microsoft to their knees.

    The POS 360 was rushed to market and built like a toaster. It launched at $499 without wifi. If you wanted wifi, it cost you an extra $99, so the POS 360 was also $599 when it launched and was actually more expensive than the PS3 with that sh*tty HD DVD addon. But when the PS3 launched a year later, Microsoft dropped the price of their piece of sh*t 360 to $399 to undercut Sony.

    The PS3 had 2 models. You could actually get a PS3 for $499 with a smaller hard drive. The PS3 was a good bargain when it came out. Sony was basically giving you free multiplayer, free wifi, a free Blu Ray drive, and free backwards compatibility because Sony was selling the PS3 at a $300 loss. If consumers knew the truth, the piece of sh*t 360 would’ve flopped for being an over priced piece of sh*t with over heating problems. The PS3 was obviously better built.

    The PS3 launched a year after the POS 360. Last gen would’ve went very differently if the PS3 and POS 360 launched at the same time. Both would’ve been $499. That year head start is what really hurt the PS3. The PS3 didn’t really do bad the first two years and it eventually caught up with the piece of sh*t 360 because consumers started seeing through Microsoft horrid business practices.

    This gen.

    The PS4 and Xbox One launched at the same time. Microsoft wasn’t selling the Xbox One at a loss to offer better value like Sony did with the PS3. The Xbox One was more expensive simply because they wanted to force their Kinect camera on the market. Microsoft wasn’t trying to give customers value like Sony tried to do with the PS3.

    Both the PS4 and Xbone launched at the same time and that is why the PS4 is winning. Sony offered better value from the start, both last gen and this gen. It was that year head start that saved the POS 360.

    • Fayz VI

      yes… but the problem was that ps3 still sucked… 77 million accounts & credit cards hacked, psn was down a lot too… and had no games. try harder.

    • TraceSkipper

      There was no credit card hacks. Also xbox live has been hack numerous times. Microsoft banned over a million consoles from using mods. Quote from pc world: Microsoft has banned as many as one million users who hacked their Xbox 360 consoles to play pirated games from the company’s Xbox Live service in a bid to counter piracy. The move triggered an avalanche of cheap “chipped” Xbox 360 consoles for sale on Craigslist and a public outcry from users is expected.

    • bardock5151

      Modding a console isn’t hacking a network and gaining access to unencrypted user information, lying about being hacked, eventually admitting the hack, all the while having the entire network shutdown for near a month, while security experts the world over criticized Sony for an unbelievable lapse in judgement and care when it comes to the privacy and protection of its customer’s information.

      Since then Sony has adopted a very anti consumer practice. If you are a victim of credit card fraud through PSN, then bad luck for you, if you tell your bank to halt payment, then Sony will suspend your account, effectively cutting you off from any games you have bought digitally, ps+ offerings and any and all access to PSN will be cut.

    • popo123

      …had no games? What? You should be the one trying harder. Oh wait, you already are.

    • Sacha Salvatore Morgese

      Oh yeah, no games, that’s the reason why I spent years playing 90% with my PS3 and 10% with my 360. Cause I loved watching the dashboard!

    • *Also On PC

      And you defended paid online with your life when Sony did everything MS did with the 360. And defending the Nogames Station 3 with the “B-B-BUH IT WAS ALL IN ONE ENTERTAINMENT CENTER”. HAHAHAHAHAHAHAHAHAHAHHAHAHAHAHAH IT HAD NO GAMES YOU MORON

      You really are the biggest cancer, John Derp

  • Funny

    Lol. And yet the PS3 still surpassed the 360 on sales, even with the rrod issue. Lmao.

    • They had the extra boost in certain countries like japan ..It didn’t surpass them more like tied up.

  • Ryan McKenzie

    Considering PS2 sold 155m units worldwide and PS3 is sitting around 85m units the 360 did take a huge chunk of market share from Sony.

  • DLConspiracy//

    I’m only here to watch gamers turn on themselves in the comment section. What a shame…

  • ImOnaDrugCalledSheen

    And this is just one of the many reasons Peter Moore is a worthless D-Bag.


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