Xbox AU boss David McLean.

　　The battle for next-generation console supremacy is about to start in earnest in Australia, with the last entrant--Sony's PlayStation 3--set for release on March 23. We spoke to the top Xbox exec in Australia, David McLean, to gauge his views on the next-gen race, on how the 360 stacks up against its two competitors, and on what new services Australians can expect for their 360s in 2007.

　　GameSpot AU: Can you give us an update on how the Xbox 360 is going in Australia?

　　David McLean: If you look at GfK Australia figures, we're running at about 145,000 units in the market. We're pleased with our share of the market, we're pleased with the adoption. We're also very comfortable in this stage of the life cycle that we're moving ahead of the people that we marked ourselves against in the previous generation.

　　There were some comments from our competitors about retailers being disappointed with the performance of the 360. There was a comment made about our install base at the moment compared to the PS2's install base now of 2.2 million units. The appropriate thing to do is compare where we are in our life cycle compared to where they were in theirs. We launched 45 weeks ago. In PS2's first 45 weeks, they sold 116,000 units. In our first 45 weeks, we sold 145,000 units. So if you think about momentum and moving from that to a situation of 2.2 million units over time, we feel we're on track.

　　At this point in my competitor's life cycle, their attach rate [average number of games sold per console] was 2.5 units of software, according to GfK. At that time, they had their major franchises out in the market. Grand Theft Auto 3, Gran Turismo 3, and Metal Gear Solid 2 were available. Our attach rate is currently running at 4.8. We've just released Gears of War. We've got some heavy-hitting titles coming this year with Halo 3, Grand Theft Auto IV, and Crackdown. We're extremely confident that we'll see our attach rate grow at an accelerated rate.

　　GSAU: What's your opinion on the Nintendo Wii's local launch?

　　DM: I think Nintendo would be very happy with their performance to date. They are a respected brand who has come up with an interesting concept around their console. They've had a great launch. But I'd be concerned about their attach rate, because [they have] an attach rate of less than one. I think that may be a challenge over time. It'll be interesting to see what software becomes available for them that will drive the software attach rate. It will also be interesting to see the durability of their strategy of motion-sensitive games and whether there will be enough rich content to support it.

　　GSAU: The Nintendo Wii outsold the Xbox 360 in the last quarter, though. Do you see them as a serious competitor?

　　DM: Yes, absolutely. We are all in the same space. There's an argument to say that they have a stronger focus on different parts of the market than we have. They have a good strong heritage, and they are to be respected for that.

　　GSAU: Microsoft recently downgraded its sales forecasts for the 360. Have the Aussie numbers been similarly downgraded?

　　DM: Typically we don't talk about numbers for individual regions, but we are a part of a global number. I think it's a good decision for us as a business to make. It's focusing on the right things, being profitable, focusing on great software and accessories attach, focusing on providing new services and experiences for our gamers, and creating a healthy ecosystem around Xbox 360.

　　GSAU: So it's fair to say that the lower forecast also applies to Australia?

　　DM: Yes, absolutely.

　　GSAU: Sony's PlayStation 3 will be launching in Australia exactly one year after the 360 did. What advantages does that give you?

　　DM: The advantages for us are simple--our install base is ahead of where the PS2 was at this stage of the life cycle, and our catalogue of software is not comparable to anyone else's. The advantage for us when they launch is the mythology goes away. Consumers will now be able to walk into a store and hopefully see a PS3, a Nintendo Wii, and an Xbox 360 side by side. Then the real debate will happen. People can stop listening to what I or my counterparts are saying and start experiencing these products for themselves.

　　GSAU: From an average consumer's point of view, one of the main differences between the Xbox 360 and the PS3 is price. Does it help you even more that Sony isn't bringing their lower-end PS3 SKU to Australia?

　　DM: I don't know. Price is a huge issue--there's no doubt about that. Affordability is important to everybody. I think our price point and what we're offering is very good value for money. It depends if you're a consumer that decides you want to be told what you need to take and pay for it all up front, or you want the choice to make those decisions later. I think it's more about the choice that we're given than the price point.

　　GSAU: Any chance of ramming home the advantage even further by offering a price drop?

　　DM: We don't have any plans of making a price drop in the immediate future. And I don't think we need to--we're offering good value for money.

　　GSAU: The 360's HD DVD Player is due for release here on March 29. What are your expectations for that product?

　　DM: I think HD DVD will go well for the high-def movie enthusiast, but I don’t think every gamer is a HD enthusiast today. It will be a burn over time. But I think we will have good solid uptake initially. I don't expect every single person who has an Xbox 360 to rush out and get a HD DVD drive because I'm not sure that every single gamer is very much focused on HD movies today. I think that will be a challenge for the competition as well.

　　GSAU: What about the Xbox Live Video Marketplace? Any chance of seeing that available in Australia?

　　DM: We're working aggressively on getting the video marketplace in our market soon. I can't give you any date, but we are firmly working on it. We think it's a key component of the Xbox strategy. We're working hard to build the appropriate relationships and partnerships with the local market to get that working as soon as possible.

　　GSAU: David McLean, thanks for your time.