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Microsoft's Stephen McGill

Microsoft's UK marketing manager on how to sell motion control to the masses

GamesIndustry.bizSo Kinect is an Xbox feature rather than just an Xbox 360 feature?
Stephen McGill

It's part of the platform. But I think we've proven that you don't need to replace a console regularly, because we can update the services and experiences you have. Three or four years ago, versus now, it's exactly the same physical console but it's a completely different experience. You'll see us continue to do that.

GamesIndustry.bizLots of retailers are reporting that their pre-order stock has sold out - are you able to tell us what your allocation of units was across Europe?
Stephen McGill

I can't go into specifics. It's a very healthy number - I'm getting more than I did when we launched 360 as a console. That said, a lot of retailers have now switched off their pre-orders - demand has been incredible. That's great to see, it's clearly the must-have product for Christmas. A lot of retailers have closed their orders for day-one delivery so obviously they're now taking orders for the next replenishment of stock.

The key thing for us is to make sure our manufacturers are working 24-7, that we've got the right number of planes, the right number of boats and vans, lorries, taxis, whatever it takes to make sure we're replenishing the stock regularly from launch, all the way through to Christmas.

GamesIndustry.bizAnd when will we see that next load of hardware on its way to retailers?
Stephen McGill

We've got new allocation coming in incredibly regularly. It's down to individual retailers really.

GamesIndustry.bizBut you've been able to reassure individual retailers that there won't be a shortage of units over Christmas at your end?
Stephen McGill

Well, we're manufacturing as many as we can, and we'll do everything we can to get them out as quickly as we can - that said, demand seems to be really encouraging so far, and obviously the marketing campaign hasn't really kicked in yet, so that starts over the next week or two in the lead up to launch - it's clearly going to be a hot thing for Christmas.

I hope I have enough, I can never promise - but we're building and shipping as quickly as we can.

GamesIndustry.bizYour loss leader policy on hardware is a little bit different to some of your competitors, are you seeing profit on each Kinect unit sold?
Stephen McGill

I can't go into the profit side of our business. Obviously we want to make sure it's as affordable as possible - it's a benefit if we get this out to people so they can begin using it. We think it's really good value. Particularly if you think that, out of the box it's ready for multiplayer - you can have a four-player system right out of the box for your £129. From a value perspective I think it's really priced quite well.

GamesIndustry.bizDo you think that the lack of controllers might actually make Kinect a harder sell for some people? A lot of people are probably quite attached to them.
Stephen McGill

I don't think it's a barrier. The key thing for us is making sure that people understand what Kinect can do for them and how it can unleash gaming and entertainment for a lot of people that haven't really been able to do it because they haven't been able to get used to the technology of having a gadget in your hand.

Controllers are getting more and more complicated. Everyone knows how to kick a ball, pretty much everyone knows about volleyball, or bowling. There's nothing more natural than doing it with your hand. We did it as kids, we've done it growing up. Pressing buttons is alien to a lot of people. Hardcore gamers like you or I, yeah, we can get it, but a lot of people don't, and can't.

So we're taking technology out of the way, making the technology invisible. Yes there's some great technology, it's a great gadget but ultimately it needs to be invisible for people to have a great time, and no other platform comes close. No one's ever tried this before, and I love that.

The thing I've learned over the last few months, or the thing I've really enjoyed I should say, is when we've been out on the tour and seeing people's expressions, when they see or play Kinect for the first time. That moment when they realise, my hand is controlling what I'm doing on the screen. I'm saying "Xbox pause" and the movie pauses.

You go and play a game, you see a ball and you go and kick it, it's so natural. For me it's been great watching people's reaction to that, because it's been great. Amazing to see.

GamesIndustry.bizSome publishers we've spoken to about Kinect seem to think that Microsoft is launching Kinect as a bit of a short-term solution to extend platform life. What would you say to them?
Stephen McGill

Well from a Kinect point of view what we're trying to do is revolutionise the gaming and entertainment experience, it's bringing new forms of entertainment to life in magical and extraordinary new ways.

I haven't heard any of those kind of comments, the only comments I've heard have been 'wow, now we can go and do this, I can now go and do that'. It's just unlocking their creativity like nothing else they've had in their tool box before, so everything I've heard has been incredibly positive.

GamesIndustry.bizWhat sort of sales projection do you have for how many extra 360s Kinect will help you sell over Christmas? Are you sharing that with publishers?
Stephen McGill

Unfortunately I can't go into that sort of sale projections with you, nor do we split any of those sales out country by country.

GamesIndustry.bizBut you share them with publishers?
Stephen McGill

At a senior level, yes. I'll say this: I'm expecting to sell a lot of consoles to a lot of people who hadn't been considering Xbox 360 because of the new experiences we're offering with Kinect.

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