Giant Bombcast Pre-E3 2011 Edition

[0] Ladies and gentlemen, welcome to a special After Hours edition of the Giant Bombcast.

[1] I'm Ryan Davis.

[2] Jeff Gerstman's here.

[3] This is when the pants come off.

[4] That's right.

[5] After Hours.

[6] It's like Playboy After Hours.

[7] Yeah.

[8] And Patrick Klevick's here.

[9] He's too young to know what that means.

[10] What constitutes After Hours?

[11] Because I think it's like 5 o 'clock.

[12] Come on, man. You're fucking up my little show here.

[13] But the special occasion for all this is we have...

[14] He is too young to remember.

[15] He is too young to remember.

[16] That's like killing me. Shit.

[17] How old are you guys?

[18] I'm 35.

[19] I turned 32 right before E3, so...

[20] Oh, happy birthday.

[21] Thank you.

[22] That voice you hear, the dulcet tones, Mr. Michael Pachter, financial analyst for Wedbush Morgan, baller, moneymaker, shot caller.

[23] Michael, good to have you in the house.

[24] No more Morgan in our firm.

[25] We killed him off.

[26] Oh, is it just Wedbush?

[27] I'm sorry.

[28] It's okay.

[29] Don't be.

[30] Okay.

[31] I didn't realize that there was nothing.

[32] Just in case you're writing us a check.

[33] You know, Upshot is new business cards, right?

[34] I have them.

[35] Fantastic.

[36] They look good.

[37] What brings you to the Bay Area, Mike?

[38] You know, I got to say, seriously, I'm going to the Glue mobile analyst event tomorrow.

[39] I know, pretty excited about that.

[40] And, you know, Microsoft, those bastards, decided they wanted to do their pre -E3 briefing for, like, the select few.

[41] Yeah.

[42] Tomorrow.

[43] Oh, here?

[44] No, in Redwood.

[45] Oh, in Seattle.

[46] So you're just hop, skipping, and jumping up the coast.

[47] No, I'm not going.

[48] I said, I'm going to Glue.

[49] And I said, already set up the bomb cast.

[50] Going to Glue.

[51] Not a member of the Better Offer Club.

[52] That's just not what I do.

[53] And they were like, have somebody else do that.

[54] And I said, no, you guys plan ahead.

[55] There you go.

[56] We trump Microsoft.

[57] Do you hear that, Microsoft?

[58] That's right, Microsoft.

[59] Seriously.

[60] Watch your backs.

[61] I committed.

[62] I'm here.

[63] Well, I appreciate it.

[64] No, it's always a pleasure to have Michael Baxter.

[65] Total respect for you guys.

[66] In the house.

[67] Let's talk a little pre -E3 business then.

[68] You know, the show's coming up.

[69] Actually, I'm curious.

[70] Like, how do these pre -briefs end up going?

[71] Because, you know, sometimes we get pre -briefed on things and it's always like phone call where there's kind of rundown.

[72] Let's ask a few questions.

[73] Well, I asked for a phone call.

[74] I asked for a phone call and they were like, nope, we want to see the White Sea rise.

[75] So since I have it gone, I'm happy to talk about it because once I go, I can't.

[76] I'll give you last year.

[77] So last year we saw everything you saw at E3, we saw privately.

[78] So I knew about the black.

[79] I didn't know Don was going to pull the cover off of it or anything, but we got to touch it.

[80] We got to see it.

[81] It was pretty slick.

[82] A nice little bit of theatrics there.

[83] We knew about the two models.

[84] I mean, they showed us the matte versus the shiny black.

[85] It was that kind of stuff.

[86] And we literally went through every game that they showed in D3.

[87] So this year, I think something big is up.

[88] So is that just like guided demos to Microsoft?

[89] Yeah, if they want you there, if it's the sort of thing that can't be conveyed in a phone call.

[90] Big.

[91] And the thing that's really interesting, I love giving away the secrets that I don't know.

[92] I do not know.

[93] The thing that's really cool is it's like Phil Spencer and Mark Witten want to see the whites of your eyes.

[94] I'm like, Microsoft Game Studios and Xbox Live.

[95] I'm like, there's media reveals for Xbox Live, got to be.

[96] Right.

[97] And there's some really cool games.

[98] Well, that's got to be the friends list.

[99] That's got to be like.

[100] spring up their fall update stuff.

[101] I don't know.

[102] And then when they were asking me for alternatives to tomorrow, I said I can do it either May 31st or June 3rd, both day trip.

[103] I'm committed other days.

[104] And they're like...

[105] June 3rd doesn't work because Kudo won't be there.

[106] Okay?

[107] Okay.

[108] Kinect.

[109] As we would say, Kinect.

[110] So I'm guessing I'm going to see some – this is my real guess.

[111] I think we're going to get something from Kinect that actually resonates with the hardcore that you guys will give a giant bomb two out of five to, which is – Generous.

[112] Yeah, generous.

[113] Something that will require you to get off the couch as a hardcore gamer.

[114] I mean, you know, that's – On your way to yogurt.

[115] Yeah, exactly.

[116] On my way to get some frozen yogurt.

[117] As long as it can have between the two.

[118] But, I mean, it's where Microsoft really needs to hit hard is on the Kinect stuff.

[119] It's like, okay, it was enough of a success at launch for the hardware.

[120] Dance Central kind of came out as like, okay, this is a – valid piece of software.

[121] This is kind of, you know, setting the standards, but it has been such a drought for software for Kinect since then.

[122] And, you know, it didn't quite have that same, you know, Wii level of success where they could ride.

[123] Oh, well, it comes packed in with Wii Sports.

[124] That's enough.

[125] Right.

[126] And you can coast on that for a while.

[127] And to draw a really poor analogy because I'm Mr. Analogy and they're always bad.

[128] Just change your name then.

[129] Well, I don't get how connected.

[130] Financial analogist.

[131] There you go.

[132] Get new cards made.

[133] A lot of people just drop the YST.

[134] Yeah, yeah, yeah.

[135] Close.

[136] It's a fine line.

[137] It is pretty bad.

[138] The success of Kinect hardware without any really great software is shocking in light of the utter failure of the 3DS without any great software.

[139] So it's kind of like, why are people buying Kinect, 10 million of them, with nothing compelling?

[140] Dance Central, come on.

[141] You guys are not playing Dance Central.

[142] a fair amount of Dance Central.

[143] I actually enjoy Dance Central.

[144] I win it when I win it.

[145] It's the one game.

[146] It's Wives and Daughters.

[147] I mean, that game is broadly speaking.

[148] So who's buying Connect?

[149] So I think that they recognize that, hey, we got really lucky.

[150] We got $10 million out there and we better support this thing or it's going to turn into the Wii.

[151] It's going to go into the closet.

[152] I don't understand why that he wouldn't bother with hardcore games because that's not...

[153] It's not going to make a difference.

[154] It's just a situation where maybe the hardcore man of the house bought it thinking like, oh, my girlfriend can play this and that.

[155] They're not going to want to play Halo Connect, Gears of War.

[156] Just run in the other direction and just embrace the casual.

[157] It's a casual device that is attached to a hardcore device for Gears of War 3.

[158] But these on -rails experiences that are sure to come about attached to existing franchises, it doesn't make anyone happy.

[159] I mean, no, it's trying to go down that path with existing properties or trying to adapt.

[160] It is the same Wii problem where you look at that and you say, well, okay, yeah, I could play this with the nunchuck in the Wii remote.

[161] Or if I had a standard controller, I would have controls I'm more comfortable with.

[162] feel that I would perform better in the game.

[163] Like, there's not...

[164] Well, it was like Dead Space.

[165] Like, they had to, you know, go create a custom Dead Space experience for the Wii.

[166] Right.

[167] It was, you know, it went against everything that made Dead Space good in the first place.

[168] So, what I think is interesting is that you guys automatically define hardcore as shooter.

[169] And I don't know that that's true.

[170] So I'm thinking like – I'm just talking.

[171] No criticism.

[172] I just meant that like, yes, of course, a shooter waving your hands is stupid.

[173] That's the whole Kevin Butler ad going bang, bang, bang.

[174] But Conker, I'm thinking Rare.

[175] I'm just trying to think like what do they have?

[176] They can't do Star Fox I don't think because I think it's a Nintendo.

[177] That's Nintendo.

[178] But they can do Conker.

[179] And maybe that is fun.

[180] And you said Rails, but I'm thinking, why not a platformer?

[181] Why not a retro, fun platformer?

[182] I mean, I don't know.

[183] There are middle grounds.

[184] I think Star Wars could be huge.

[185] If done right, that is something that would appeal to.

[186] So give us a peripheral sword and that would be totally fine.

[187] Yeah, exactly.

[188] You could just scan in your broom.

[189] Oh, wait.

[190] That doesn't exist anymore.

[191] When developers were first being shown Kinect stuff, a lot of them went like, exactly.

[192] They said, give us a sword.

[193] Give us plastic things we can hold.

[194] You could just pull out your Johnson.

[195] Well, yeah, exactly.

[196] But Microsoft was just like straight up no. No peripherals.

[197] You are the controller.

[198] They just shut it down.

[199] I wonder if – And I think it says that, your E3 press badge or whatever.

[200] I think it says you are the controller.

[201] It's been on the back of the box.

[202] I hate to change subject, but I'm going all blank.

[203] What are you guys putting in those?

[204] Exactly.

[205] I'm either going all blank or writing really offensive things on the blank stickers and sticking those on.

[206] I'm thinking, yeah, but what?

[207] I can't think.

[208] Okay, I'm looking for some pearls of wisdom.

[209] We can crowdsource this.

[210] Where's Jay Allard?

[211] Actually, that'd be funny to put yourself as Jay Allard.

[212] Yeah, exactly.

[213] Didn't they just shut down his studio too?

[214] Yeah, that portfolio studio.

[215] Is that what it's called?

[216] Pioneer studio.

[217] That's true.

[218] I am a Zune.

[219] Okay, I got it.

[220] Every sticker is a different failed Microsoft project.

[221] MS Bob, Windows Phone 7, Courier.

[222] Actually, to back this up a little bit, I was just curious that you were so quick to label the 3DS as just an abject failure.

[223] So far.

[224] I would love to hear.

[225] It's not over yet.

[226] No, no. Obviously, it's not.

[227] It's a failure out of the gate.

[228] Sure.

[229] It may. Look, it's never over until it's over.

[230] I mean, I guess it's like how is it.

[231] I don't have any sense of how it's performing against what Nintendo expectations were.

[232] They're guiding to 14 million sold this year.

[233] So you need to see more than a million a month.

[234] It was supposed to be, what, 4 million first month, but it underperformed to like 3 .7 or something.

[235] Yeah, but it's like, you know, I don't know.

[236] I mean, it is weak on the software front, and we've been talking about this for months, and it kind of comes down to the notion of, you know, all launch.

[237] Lineups are usually fairly weak.

[238] You're lucky if you get one or two strong titles out of the gate like that.

[239] And in fairness to Nintendo, I think Nintendo is very disciplined about getting hardware out on time.

[240] And I think they're very disciplined about not releasing software until it's ready.

[241] So software delays make sense because they will not put out a bad game.

[242] So I kind of get the mismatch.

[243] But I actually think the 3DS is demonstrating the power of the smartphone.

[244] I think it's demonstrating that the mass market audience is just migrating away from hardcore games.

[245] And they used to be able to sell a DS to everybody.

[246] And I think now I have 11 -year -old kids who want an iPhone.

[247] They're not getting it yet.

[248] But no, but when it first came out, it was like $100 data plan.

[249] It was easy to say, no freaking way, are you getting that?

[250] Now the data plans are $20.

[251] And give me another year and it will be a family data plan for $100.

[252] And of course I'll do it.

[253] And even if you want to just get them started, get them an iPod Touch or something.

[254] Well, they have that.

[255] They have one.

[256] So I'm saying that my kids have an iPod Touch.

[257] They've spent $7 each.

[258] They each have one.

[259] They spent $7 between them in two years on games.

[260] And they each have like 80 games.

[261] They're like the masters of free game of the day.

[262] 11 -year -old girls and they're like all over it.

[263] And I bring the 3DS home, and they're like, yeah, it's cool.

[264] You know, throw it in a drawer.

[265] They're off.

[266] So I think that, you know, if you think about Nintendo's true sweet spot, at least Western sweet spot, you know, 8 to 12 -year -old kids were probably 60%, 70 % of their audience, and then everybody else was the other 30%, 40%.

[267] Right.

[268] they're losing that.

[269] That audience is playing iPod Touch.

[270] The older audience is playing smartphone games.

[271] And the only people who really are going to buy it are guys who will buy it for Kid Icarus.

[272] I mean, it's a question of, you know, am I going to pack in another device on me just for games?

[273] Where it's like, well...

[274] I don't like playing games on the go that much.

[275] I always hear that from intelligent adults like you.

[276] Having the iPhone around.

[277] You know Jeff Keighley, right?

[278] Oh, sure.

[279] Okay, so Jeff is one of a thousand people I know who carries an iPhone.

[280] And a BlackBerry.

[281] Oh, so he's playing two games at once.

[282] No, he's not playing any games.

[283] That's the point.

[284] It's like, how many people do you know, though?

[285] They have their iPhone because it's a cool web browser.

[286] It's got other shit.

[287] And they have their BlackBerry because they like the keyboard and they like typing their emails on that.

[288] I mean, I must know.

[289] I literally think I know 1 ,000 people who have both.

[290] So the two -device excuse is bullshit.

[291] But it sounds good.

[292] The truth is that for 70 % of the market that want to play handheld games, iPhone games are fine.

[293] That's what I'm saying.

[294] I mean, they're good enough.

[295] The point that I was going to ask you is that it's not a discerning audience.

[296] Like, they're going to be maybe a little more price sensitive.

[297] So the idea of like, yeah, I can pay a dollar for this game.

[298] It's like, you know, no real investment on my part.

[299] Like, I already cabbed this device.

[300] And if you look at, you know, look at the, not the top sellers on the DS, but look at the, you know, the number, look at 50 % of the units that are things like Cooking Mama.

[301] Or Pokemon every six months.

[302] And Pokemon, again, I would actually call that a super high -quality game because there's so much in it.

[303] But all the really casual Tetris kind of games that people buy, the $20, not necessarily shovelware.

[304] You can get something just as good for free.

[305] Or the same game that you're paying $30 for on a DS cartridge you can get for $1 .99.

[306] Well, you can certainly get like Mrs. Pac -Man.

[307] You can get all that old stuff.

[308] There's a lot of weird crossover there where you see games that are being packaged and sold for the DS that are $20, $30 that are then on the iOS.

[309] Other than different controls, literally the same products for significantly cheaper.

[310] It's an interesting dichotomy there.

[311] So I think the right question.

[312] and let's just start out being as controversial as we can, is if you guys remember 10 years ago when GameCube was failing and everybody said Nintendo should get out of the hardware business because they suck and they should go Sega route and put their software on all consoles.

[313] And, of course, that was premature because they just were losing that generation.

[314] They still had handheld.

[315] The handheld business was robust.

[316] They knew they were doing the Wii.

[317] It worked.

[318] Good for them.

[319] Now let's ask that question now.

[320] So the Wii is fading.

[321] It's not dead yet, but it's fading.

[322] Wii 2 is either going to be an advance over the PS3 and 360 or not.

[323] If it's an advanced, no third parties make the software for it.

[324] Or if it is a port machine, they can port a 360 game.

[325] So if it's not able to be ported, if it's too fast and nobody can port, you're not going to get all the data.

[326] People still develop to the Xbox 360 and port up rather than develop to the Nintendo system and port down.

[327] If they can, then it's just two years too late because they've already given up the whole Kinect move thing.

[328] So now I think is the right time to say, and the handheld is dying.

[329] Now is the right time to say, should Nintendo take its software and put it on multiple consoles?

[330] Because if they do, they'll triple their software sales for sure.

[331] Right.

[332] And they'll make a lot of money and just acknowledge that the end to hardware, not just for Nintendo, for everybody, is in sight.

[333] That we are moving to the cloud and consoles are going to go away eventually.

[334] And we're moving to the smartphone and handhelds are going to go away eventually.

[335] And so get your content out there everywhere.

[336] I don't think Nintendo is ready to give it up.

[337] They're like Apple.

[338] They like to have so much control.

[339] But also, more importantly, is they make too much goddamn money off of that hardware.

[340] They're too used to making so much money just selling hardware, which is why they keep churning out new versions of all their hardware constantly.

[341] It's going to take, and after the massive success of both the Wii and the DS over the past decade, you know, you think about the GameCube, yeah, that was very early this decade.

[342] The rest has been gravy for Nintendo.

[343] It's going to take...

[344] A really nasty lesson hard learned.

[345] So this might be a way to failure.

[346] It might be a 2013 or 2014.

[347] If the 3DS doesn't pick up any steam, then, yeah, you can see the situation where, you know...

[348] They could take very hard looks at these markets after these consoles.

[349] I think they would mint money if they would make their software for all consoles.

[350] They have no reason to do it until the market tells them, you have to stop doing this.

[351] And that's not going to happen until after this cycle.

[352] I think that the Nintendo that thrived from 1985 to 2010 is a company that said, we're in the business of selling hardware by making great proprietary software.

[353] I honestly think hardware is going away.

[354] I mean, I think that in five years, there'll be plenty of consoles, but I don't think people are going to keep upgrading consoles.

[355] I think upgrades are going to come in the cloud because it just makes sense for that.

[356] And I actually think we need display technology before you get major – you need a hologram before you really need anything more than these consoles can do.

[357] So I think we're entering a long era of kind of static graphics, and they're okay.

[358] It's definitely diminishing returns.

[359] It's always one of those things where you start to look.

[360] Right right at this point in the cycle is when you start to look at the PC and go, well, what's going to come next on consoles?

[361] Let's look at the PC.

[362] How often do you upgrade your PC?

[363] Four or five years.

[364] And I feel like I'm kind of ahead of it sometimes.

[365] And the only reason you would do it is games.

[366] Microsoft Office doesn't take more power to run, or your email.

[367] So the point is that...

[368] The pornography comes in higher and higher resolutions, and I want to make sure that there's no drop in frame rate.

[369] Every pimple on every single core.

[370] But you also look at what's coming on the PC.

[371] There are incremental increases in those games, but you're not seeing the giant leap.

[372] You just saw Bioshock Infinite.

[373] You look at that, and what you're seeing on the PC, there's not...

[374] or Rage, which is like a 60 frames per second, amazing looking game coming on the 360.

[375] You're not seeing something that you're looking like, I really want to buy some hardware.

[376] It's like you get a better frame rate.

[377] Yeah.

[378] It's just that, you know, if you're super serious about it, you look at it and go, well, you know, that's enough for me to go spend this money.

[379] But yeah, for most people.

[380] The general consumer, we're not there yet.

[381] So I think.

[382] We'll have this conversation in 2014, and I think it would be interesting.

[383] I agree with you, and Nintendo won't do it, but I think that they would make a lot of money, and they'd make a lot of people happy if they were platform agnostic.

[384] Because honestly, people don't think of Nintendo as being an innovative hardware company anymore.

[385] They did innovate in 2006, but none of us think about that.

[386] as anything that matters anymore.

[387] And others ripped them off and honestly, Kinect arguably improved upon it.

[388] Move is an HD version of Wii.

[389] And now it's like...

[390] I think it's kind of mean to write them off.

[391] I'm not having fun.

[392] I'm just doing it for confirmation.

[393] I don't really believe in any of this.

[394] They revolutionized the industry in the way they did in the 80s and all of a sudden just because...

[395] I don't know.

[396] I think they've earned the ability to...

[397] Let it slide for them.

[398] They will wait until they're pushed into a corner because they like to get pushed into a corner.

[399] And then they will do something.

[400] They have no incentive to do something totally off the wall with their next machine because everyone copied them.

[401] So wait while everyone copies them.

[402] See where the market goes.

[403] And then if they want to do it in their console, then they can do something that's a little bit different.

[404] They don't have a whole lot of incentive to try and replicate.

[405] Their biggest successes have been...

[406] crazy fucking dice rolls.

[407] I mean, between the DS and the Wii, it's like, the first time you see either of those, I'm like, what are you talking about?

[408] Why would anyone, and then suddenly millions of units.

[409] I mean, it was that crazy situation where, you know, when the DS and the PSP were put side by side and everyone took a look at it, everyone went like, oh yeah, PSP, I want one of those.

[410] PSP wins.

[411] Right, totally.

[412] And everyone was wrong.

[413] I mean, again, now morphing into that, NGP.

[414] Right.

[415] You know, it's the same problem.

[416] And I don't think people are going to fall for it a second time.

[417] No, it's a totally slick device.

[418] You will want one.

[419] I will want one.

[420] So since we last spoke, I have used it in GP.

[421] Pretty slick.

[422] Yeah, but so was the PSP.

[423] It's the same thing.

[424] The screen looks outstanding.

[425] There's some neat things on that thing, but the games look fantastic.

[426] If they're just going to be miniature versions of the console experience, I don't think that's going to do well for them this time.

[427] It's a small market.

[428] It is crazy how the handheld space has just changed.

[429] It seems kind of overnight.

[430] Since the DS, then the iPhone was introduced, and then the App Store.

[431] The App Store pretty much completely changed.

[432] The current generation of handhelds was kind of coasting along.

[433] I feel like we haven't really spent a lot of time thinking about the DS or PSP lately.

[434] Now it's like we're looking up as the new handhelds are coming out looking at how the landscape changed.

[435] But I had kind of already stopped playing PSP or DS games even before the iPhone came out.

[436] It's a matter of lifestyle.

[437] Don't really want to play games on the go.

[438] I want to sit down and have the big home theater experience.

[439] You don't have a stick shit.

[440] Do it while you're driving.

[441] No, because that's when I'm playing Words with Friends on my iPhone.

[442] So it kind of became the point of like, well, I don't care about – You know, not really interested in the handheld market at all.

[443] And then it completely changed around on us.

[444] So while we're on Nintendo, I mean, what do we expect out of them for the big show here?

[445] Like, it's obviously it will be whatever this new hardware is.

[446] Hardware and a bunch of titles.

[447] I mean, you know, they haven't really shown any games this year.

[448] So you're going to see some games.

[449] I mean, you know, obviously you're going to see Zelda.

[450] finally.

[451] Right, it'll be kind of like last look at Skyward Sword before that shows.

[452] And I think you get a date for Kid Icarus, so I think that's actually a big deal.

[453] They'll probably say that the Wii 2 cafe, whatever it's called, will have a Mario title at launch, which will be fine.

[454] Do you think they hold until next Christmas?

[455] I don't know.

[456] Sometimes I actually think too hard, so my head wants to explode.

[457] Foxconn is starting production of Thing in October.

[458] This summer seems like that could be a Nintendo window.

[459] Well, Foxconn's going to have, my guess is, a million a month produced October, November, December, January.

[460] So they could launch as early as March, April.

[461] They could stockpile, do a simultaneous worldwide launch in September.

[462] They could do a Japanese launch in April.

[463] I don't know.

[464] My guess is it'll be a Japanese launch in April.

[465] Have they done a Japanese launch?

[466] on a home system since we launched the first in the US, didn't it?

[467] Yeah.

[468] I think SNES might be the last one.

[469] I think it might have been the last one.

[470] I think maybe actually the GameCube?

[471] No, before.

[472] What was before the DS?

[473] Oh, the GBA.

[474] Oh, yeah.

[475] GBA.

[476] That was out in Japan.

[477] But they've been doing that for their handles.

[478] I'm saying for the home systems.

[479] Oh, right.

[480] Like, yeah, the handhelds they usually...

[481] Well, N64 was out in Japan first.

[482] Okay.

[483] That's definitely the case.

[484] And you were like five.

[485] Whatever, I was working.

[486] Were you working in Japan?

[487] Okay.

[488] He was doing this job already, and 64 came out.

[489] I don't know.

[490] For Nintendo, I kind of anticipate another wall of logos like we saw for the 3DS last year of, and we have these brands and these companies committed to making games.

[491] And then half those developers just look at that and go, we are?

[492] Yeah.

[493] I guess I expect a lot of looking at that hardware.

[494] I guess what's over under on Vitality Sensor at this point?

[495] Do we even have any?

[496] I think it's dead.

[497] Do you think it's coming out?

[498] I mean, when Iwata mentioned that they couldn't get it to work with enough people, that sounds like it's scrapped for a while yet.

[499] But so odd that there would be a screen in the controller and then a little hole for your finger.

[500] It's all built right in.

[501] I thought about that when I saw the controller.

[502] And we were saying you just hide a button in there so you have to put your fingers in there to hit the triggers.

[503] That would be cool.

[504] It's just, you think back on that, that was such a weird, like, clearly still very embryonic thing for them to say.

[505] And we're doing this on also.

[506] Sorry, I don't know.

[507] I don't really know what we're going to do with it, but we are going to do something with it.

[508] And then it just shuffled off the stage.

[509] There was no demo.

[510] Because usually they bring out an application, like a hardware peripheral and show you a very clear software application.

[511] This is why it exists.

[512] And it was just like him sticking his fingers in the thing.

[513] I mean, to me, it was as surreal as the laser tag at the Ubisoft press conference.

[514] Well, that was the funny thing is you went to that.

[515] Has that ever come out?

[516] I think it did.

[517] It did.

[518] How did you review it?

[519] You went to that Ubisoft press conference, and they had something that was basically the vitality sensor that they created on their own.

[520] The breathing game.

[521] The breathing game.

[522] Yeah, exactly.

[523] Teach you how to breathe.

[524] The video game.

[525] I think I dreamt that press conference.

[526] Oh, man. I'm not sure it was the best.

[527] Did James Cameron there again?

[528] That was the year before.

[529] It all blends together.

[530] Ubisoft press conferences.

[531] Fever dreams.

[532] I kind of want to skip some of those this year.

[533] Yeah.

[534] So, Sony.

[535] I mean, obviously, you know, a lot of NGP stuff.

[536] I think the news is Gaga, don't you think?

[537] How so?

[538] Did you get our invitation yesterday?

[539] No. Oh, you guys got – you're invited to the press conference.

[540] Yeah, yeah.

[541] You haven't done the registration thing?

[542] I went to the process.

[543] It was last night.

[544] Yeah, yeah, yeah.

[545] Okay.

[546] It says 5 to 10 p .m. Right.

[547] It was a press conference 5 to 10 p .m. With an asterisk, special event immediately following the press conference.

[548] There's a concert.

[549] It's Gaga.

[550] What else could it be?

[551] I figured it would be like, and now step over here and play some video games.

[552] See, I was more assuming it would be like, cast her eye, shaking her hand, and apologizing.

[553] It's a PSN to every person that comes through.

[554] I'm really sorry.

[555] I think it's Gaga genuflecting and apologizing.

[556] That would be great.

[557] No, whatever.

[558] She's already got Gagaville, man. You can't have her out there for Sony.

[559] She's got her own thing to promote.

[560] It's something big.

[561] So this is the question we've been kicking around here concerning Sony.

[562] I thought they were very good.

[563] When they started bringing back the PSN after this massive security breach, the foot they put forward I thought was really good.

[564] It was about as good as they could have handled the coming back.

[565] But I feel like...

[566] There has to be some sort of broaching of this topic during the Sony press conference.

[567] What's your feeling on how this is approached?

[568] Because obviously you don't want to highlight it, but you don't want to bury it.

[569] There's a cultural issue that – and I don't think I understand Japanese culture very well.

[570] So I'm just talking out of my butt.

[571] But it's like we already apologized and so we don't need to just keep apologizing for the same thing.

[572] So I almost think – They'll brush it under the rug.

[573] I mean, they keep putting out little press releases.

[574] Today there's like some identity theft thing you can sign up for.

[575] I don't think they're saying they're sorry anymore.

[576] They've done it.

[577] They move on.

[578] I said, you know, God save them because the guys who hacked them, you know they're going for it the week before E3.

[579] You know they're going for it the day before E3.

[580] I mean, their goal would be.

[581] bring it down as a press conference starts.

[582] So, no, you're laughing, but I mean, so I don't know what they're going to do.

[583] I'm thinking they won't.

[584] I mean, I think they're going to move on.

[585] I think we'll get one more speech out of them.

[586] Because we're still not all the way up.

[587] Japan still doesn't have a PlayStation Network.

[588] The government won't let them put it up.

[589] Oh, okay.

[590] It's not because they can't do it.

[591] As far as the Japanese government is concerned, they can't do it.

[592] I mean, you know, I think in fairness to them, you know, the only thing they really did wrong was probably wait a little too long to tell people what was going on.

[593] I buy into the, you know, we didn't know for sure.

[594] But I think it would have been appropriate to say we took it down because there's been a hack.

[595] We're not sure what the hackers got to.

[596] So, you know, out of prudence, maybe change your credit card number or whatever.

[597] I mean, that would have just been a nice thing to do.

[598] But I think that's the cultural thing, like not admitting failure until you know you failed.

[599] And I just hope it doesn't happen again.

[600] I just think that is a massive failing is the communication.

[601] I mean, had it happened to Microsoft, it would have been a completely different story in terms of how that was handled through their communication.

[602] The funny thing is, Red Ring of Death, I mean, I actually didn't get one until like… Six months ago.

[603] We have to play games for that.

[604] Yeah, no kidding.

[605] No, my Xbox just like was bulletproof.

[606] Yeah.

[607] And then I swear to God, just one – like five years in, it just died.

[608] But – I must have known, you guys too, hundreds of people.

[609] I went through like three or four.

[610] And never did they acknowledge it.

[611] And you kept hearing about more and more people.

[612] And I remember reading, I think Takahashi wrote something like 25, he estimated 25 % of 360s.

[613] And they never acknowledged it.

[614] When they came clean, yeah, billion dollars, recall, three -year warranty.

[615] I mean, they did a lot of stuff.

[616] They didn't acknowledge it for a couple of years.

[617] They just acted like nothing wrong.

[618] So back to Sony.

[619] Things break.

[620] Yeah, Sony did not do that.

[621] Yeah, Sony did not do that.

[622] And they were honoring.

[623] I knew people who were returning them.

[624] They were honoring the warranty and stuff.

[625] But I knew guys who were off warranty, you know, because it was more than a year after the thing came out.

[626] And it had a one year.

[627] Oh, I had one that had been sitting around that when they activated that.

[628] I'm like, oh, great.

[629] Now I can kick this over.

[630] Yeah, when they updated it to the three year.

[631] Yeah, yeah.

[632] They expanded it.

[633] So, yeah.

[634] They didn't handle it very well until they came clean.

[635] Then they handled it really well.

[636] Yes.

[637] But at that point, it was kind of clear that America was sort of.

[638] running the show in terms of the communication side of it.

[639] And I just, I think that was sort of the unfortunate breakdown.

[640] It was a cultural thing.

[641] And the difference is that in the 360 Red Ring of Death, Microsoft had a design flaw, their problem.

[642] And PSN, you know, we can criticize Sony for not putting in super duper extra special security, but...

[643] Someone did hack them.

[644] I might even chalk some of that up to a cultural thing.

[645] It's like the Internet's not as big in Japan as it is here.

[646] If those decisions and how to design that system and that network are being made over there, maybe they didn't take every consideration they could have.

[647] What kills me is that people are saying, oh, it's because they prosecuted that poor George Hatz.

[648] And it's like, whatever.

[649] It's still wrong.

[650] Whatever they did to outrage you.

[651] I mean, it might be you guys saying they made a shitty game.

[652] I didn't like it, so I'm going to go hack their network.

[653] It was because Killzone 3 was not as good as it could have been.

[654] That's basically why this all happened.

[655] Yeah, the whys and the wherefores on that stuff is kind of irrelevant, I think.

[656] It's just sad that there are people who want to go in and screw up our enjoyment.

[657] Screw up our little show.

[658] So we've got...

[659] NGP stuff from Sony.

[660] We've got Wii 2 stuff.

[661] What kind of price do you think makes sense with NGP at this point?

[662] Sony loves pricing stuff.

[663] $400 is just looking like what it's going to be.

[664] With the 3G or without the 3G?

[665] I've heard some guys say 3G is an extra $50 and I've heard some guys say it's an extra $100.

[666] What is on the iPad?

[667] It's like an extra $80 or something, right?

[668] That's because Apple makes a profit on everything.

[669] But it roughly comes out to about $100.

[670] I can see that being the split.

[671] So I'm going to be bold here and just say there's going to be a $400 model.

[672] And I don't know which one it's going to be.

[673] Man, that gives you a lot of leeway.

[674] That's a hard swing.

[675] That's a price prediction I can at least agree with.

[676] I have no idea.

[677] There will be a $400 model.

[678] models.

[679] I have no idea.

[680] I just don't know.

[681] The funny thing, I love Sony.

[682] Do you remember when the PSP Go came out?

[683] They sent you an email and they're like, if you'd like to borrow one for two weeks, send you one.

[684] I wrote back, don't bother.

[685] Don't care.

[686] You know, so I'm thinking we probably won't.

[687] Guys, remember the PSP Go.

[688] I wouldn't have bought one.

[689] You've got one of those.

[690] Yeah, it was just one of those things where I'm like, this seems really dumb.

[691] I should probably own one.

[692] While I can.

[693] Let's get out there and get one.

[694] Because I have $250 I don't want.

[695] I hate this $250.

[696] It's a tax write -off.

[697] Probably for somebody else.

[698] Yeah.

[699] Yeah, everyone gets a little taste there.

[700] Yeah, NGP has got to be expensive.

[701] It's like, yeah, because they're not in a position where the PlayStation business is finally making money.

[702] They can't release a device at a loss just for competitive reasons.

[703] And there's no reason to.

[704] It's not like the 3DS is selling like wildfire and they have to hold off that big threat to their PSP business.

[705] I mean, this is a new thing for them.

[706] I think they're trying something new.

[707] I'm actually curious to see all the multimedia functionality.

[708] Is there really a way to watch movies on it?

[709] Because everybody watches movies on iPads now.

[710] Will you watch the NGP?

[711] No, because Sony's media management is always small -minded and nightmarish.

[712] It's the thing that has given, I think, Microsoft an advantage through these years has been that they understand media.

[713] Sony has never, ever understood media and media access through its systems.

[714] It's always a massive pay in the ass.

[715] You'll end up with a Netflix app on that thing.

[716] You'll end up with probably Hulu Plus and that sort of stuff.

[717] That's the thing is it comes down to they have to relinquish any control of it over to Netflix and Hulu.

[718] They always like their own proprietary corporate stuff.

[719] Whatever their movie store is.

[720] It'll probably be the same store that they have now.

[721] Yeah.

[722] In fact, I think they've said as much that it's, you know.

[723] Any movies that you've purchased through the PlayStation Store or any PSP games, that will all just carry over.

[724] So that infrastructure is still in place.

[725] Media portability is so vital.

[726] At this point, everyone has an iPhone or something.

[727] I already do that on there.

[728] I don't need another device just because that screen is nice.

[729] It can't be that much better than my iPhone 4 screen, really.

[730] And it probably won't be better than your iPhone 5 or 6 screen.

[731] So I just don't know what the compelling reason is.

[732] The technophile thing is sort of over and done at this point.

[733] If they were positioning this as like this is a device for the people that are technophiles, but I think they're going to position it as this is a device for everyone when I don't see the ability.

[734] Are third parties willing to line up again to develop for a Sony handheld after the way the PSP went, both on just the piracy end and the sales end?

[735] I mean, you could argue that those two are definitely linked to the piracy end and the sales end.

[736] But it might be a port?

[737] issue it might be one of those things like you're making you know tiger woods yeah and it's just real easy to port it down or something like that 200 grand you know yeah like depixelated or whatever you but then at that point who the hell wants that version of the game you know that's that you ended up with a lot of ports of you know because you know you think about the the psp is sort of like a portable playstation 2 you know when the psp first came out you saw a lot of that stuff where the same game was coming out on both and you know the ps2 looked maybe like a little bit better but why would you want to play that game on a PSP?

[738] There was no good reason for it.

[739] I feel like they're just walking into that exact situation again.

[740] For as much as I think that system's actually cool and high -tech, it just doesn't make a lot of sense.

[741] They're doubling down in the weirdest possible way.

[742] To me, it's extra crazy because there is always the assumption, or there was that assumption with the PSP where there would be that port -down path.

[743] It seems like there would be some sort of...

[744] that same sort of workflow for the NGP.

[745] But Sony is in this weird position kind of in between PS3 and whatever it is that comes next.

[746] Like, you know, where does this ultimately lie?

[747] I'm going to go out on a limb here and call it the PS4.

[748] Wait a minute.

[749] Breaking.

[750] Breaking news.

[751] Yeah, whatever the next entry in the PlayStation family of products.

[752] And there will be a $600 model.

[753] But that will be the low end.

[754] But in 2014, we'll all be spending Canadian money.

[755] That's a question.

[756] Do you think Microsoft even acknowledges another piece of hardware at their press conference?

[757] No way.

[758] Not even a wink?

[759] Not a wink.

[760] Nothing.

[761] Nothing?

[762] Not happening.

[763] So everyone's just going to pretend Nintendo's just not doing anything.

[764] Right.

[765] Okay.

[766] I think they'll talk about how they think the 360's got a life for another several years.

[767] Ten -year life cycle.

[768] That's going to pretty much probably end up having one.

[769] Yeah.

[770] It's kind of typical.

[771] She's still at 300 and it's selling.

[772] Yeah, right.

[773] Wow.

[774] They don't have a lot of incentive.

[775] Yeah.

[776] I have to say, you know, it's funny too because I used to really dread turning on my 360 because it made so much noise.

[777] And I laughed when they showed me this black one and called it Whisper Quiet.

[778] Right.

[779] And the fucker is.

[780] Yeah.

[781] I keep waiting for mine to break so I can have mine.

[782] I forget to turn it off occasionally.

[783] I hit the TV off and I'm like, I see the little green light on.

[784] I'm like, whoa, I forgot.

[785] No, the table's turned on that one.

[786] Now my PS3 is now the one that sounds like a goddamn jet engine.

[787] Yeah.

[788] You have the original.

[789] I've got an original.

[790] I've got, yeah, first -run model.

[791] The Slim PS3s are...

[792] Pretty nice, too.

[793] They're pretty quiet.

[794] I don't doubt it.

[795] Now, did you have the LA Noir PS3 Yellow Light of Death thing?

[796] My PS3 is dying.

[797] I have a 60 gig launch one.

[798] It had frozen up occasionally during games.

[799] It especially used the hardware, or at least seems like the hard drive.

[800] But LA Noir, literally every 20 minutes, it locks up.

[801] So I finally have to just sort of throw in the towel and go get a Slim.

[802] I had that on Fallout.

[803] New Vegas.

[804] I think everyone had that.

[805] It's not like every tennis.

[806] But when I have to purchase games, and unfortunately for Take -Two, I have to buy their games because they don't send them to me. Is that your public appeal to Take -Two?

[807] Strauss Zelnick listens to this podcast.

[808] I think Strauss wrote this stuff.

[809] He's a very eloquent man. He is.

[810] I buy 360 games.

[811] If I have a choice now, I buy 360 games.

[812] Too much grief.

[813] Well, especially right now.

[814] Especially if you can't, you know, cash in your online code or redeem your special whatever.

[815] It's been an odd time.

[816] Anyway, I want to get back to E3 stuff.

[817] E3?

[818] Yeah, it's coming up.

[819] It's right around the corner.

[820] Isn't that cool?

[821] What do you do during E3?

[822] Jesus.

[823] You want to see my calendar?

[824] It's unbelievable.

[825] I don't doubt that it's packed with stuff.

[826] I have a really good party that I'd love to have you guys come to.

[827] I haven't heard of this.

[828] You guys do a party?

[829] Yeah, we do.

[830] I was sure that it was Morgan that did the party.

[831] Yeah, Morgan's dead.

[832] We killed him off.

[833] Did all the good sushi go with him?

[834] Sushi's good.

[835] You haven't done my party.

[836] You're coming this year, right?

[837] Yeah, I'm going to try.

[838] Absolutely not.

[839] So we're live streaming every night after the show.

[840] So good.

[841] There's couches.

[842] We're renting a house for the month to broadcast out of town.

[843] The hood in town.

[844] University of South Central, maybe you heard of it.

[845] Oh, downtown.

[846] It's like Adams or whatever.

[847] Pretty close to USC student housing.

[848] Bars on the windows.

[849] That's fun.

[850] Yeah, it's like a funky space.

[851] That's totally fun.

[852] Good for you.

[853] It's a really good way to get high -speed internet to do your live broadcast.

[854] It's a really good way to get high also.

[855] Good neighborhood to get high in.

[856] Just bring that sushi over to the house.

[857] Yeah.

[858] We've got this place across the street.

[859] They do chicken tikka masala burritos.

[860] That would blow your mind.

[861] It's seriously very good.

[862] We rented the same house last year.

[863] We're coming back to it again this year because it was so much goddamn fun.

[864] And, yeah, for all those other reasons, for the high -speed internet, for chicken tikka masala, really.

[865] ruined a lot of things for me last year.

[866] It's definitely like you're kind of living on that.

[867] Yeah, if you eat that more than a couple of times, it'll come and get you.

[868] I meet a lot of people at E3.

[869] That's what I do.

[870] I mean, just talk.

[871] Just go around and talk to people and say, buy, sell, buy, sell.

[872] Get a good feel for it.

[873] A lot of investors go.

[874] And all the companies have investor events.

[875] So I go to all those.

[876] I feel like there's this whole secret shadow E3 that Michael Pachter is going to.

[877] All the conference rooms upstairs that you guys aren't allowed to go to.

[878] That's what we're doing up there.

[879] Damn it.

[880] You guys were seeing Portal 2 last year.

[881] We meet with each company.

[882] So I take investors in to see companies.

[883] It's actually pretty much of a snooze for most people.

[884] Like my clients.

[885] They don't get access to all these companies all the time.

[886] So if a client flies out, they can see all the CEOs all in a day or two, and it's worthwhile for them.

[887] It's just this completely separate parallel thing that's happening next to the big stupid booths and the long lines and the ridiculous stage shows.

[888] You have a 401k here?

[889] Sure.

[890] Somebody is investing that shit, and they're going to be at E3 meeting with the video game companies.

[891] I've got to go pull all the money out of a 401k.

[892] That was just a warning.

[893] Clearly, this is bad news.

[894] It is a shadow world.

[895] It's like selling drugs.

[896] If that's the same money, it's great.

[897] Very lucrative.

[898] Requires no skill at all.

[899] I've been investing my money in drug sales for a long time anyway, so this works out great for me. Just sponsoring a local dealer and taking a cut on the end.

[900] You can kind of move up.

[901] Everyone's happy with it.

[902] I want to talk third priority.

[903] I want to talk what EA is going to be leaning into.

[904] Star Wars The Old Republic will be the first item and the last item on the book edit.

[905] I'm not saying it's going to be the only thing.

[906] Oh, Battlefield?

[907] Yeah, Battlefield will be big news.

[908] With the amount of money they're spending on Old Republic?

[909] No, but Battlefield, people will be drooling over Battlefield.

[910] I'm excited about Battlefield.

[911] I'm excited about whatever they have coming for both from Criterion, the Need for Speed line, whether that's intertwined or not, however that pans out.

[912] I'm curious to see what that will be.

[913] There is a first -person shooter that's being shown that they haven't announced yet.

[914] I just don't know if it's the Respawn game or a different game.

[915] I don't know who's making it.

[916] We keep hearing that for Ubisoft also.

[917] I mean, Electronic Arts announced it three months ago on an earnings call.

[918] They said, we have a first -person shooter unannounced.

[919] We'll be showing it later this year.

[920] They didn't say E3, but why not?

[921] Sure.

[922] And then the Respawn guys, I'm thinking, will be there.

[923] By the way, you know, like, I don't know.

[924] Like, we did the bonus round.

[925] We were talking about, like, I said, oh, you know, we could get, like, a Bungie reveal, you know, Activision.

[926] And then a bunch of comments, guys, like, oh, Bungie announced they're not coming to E3.

[927] They're coming to my freaking party.

[928] So maybe they're just flying in for the party and then leaving.

[929] So Bungie Reveal, baby, I'm telling you.

[930] I know it's a different publisher.

[931] That seems like the sort of thing that could just as easily show up at someone's keynote.

[932] I'm sure Sony at some point made a call to Activision and said, hey, if you've got that Bungie game, if you want to bring it to our press conference, like, hey.

[933] And that's what I was talking about on bonus round.

[934] I think there's a Bungie reveal.

[935] I think you might get a respawn reveal.

[936] I think you get a Bungie logo on a screen.

[937] You get a Bungie logo on a screen.

[938] If it is a reveal, it ends up being like two seconds of video.

[939] During the Nintendo press conference.

[940] That would be the coup.

[941] They would fuck with people.

[942] They would fuck with people.

[943] The Bungie logo on the Sony press conference screen, that makes sense.

[944] That's a no -brainer.

[945] Reggie is Master Chief.

[946] You're just going to keep pushing this rumor.

[947] Peddling this 1080p, baby.

[948] Make it come true.

[949] What is the 10th anniversary of Halo or something?

[950] That would be the 12th, 11th, but still.

[951] They've got big plans for...

[952] PAX or something with Halo stuff, don't they?

[953] There's Halo Fest.

[954] There's other rumors of the HD remake of the original coming out this year.

[955] They've got to put out something Halo related.

[956] There will be something Halo related.

[957] I'm personally most excited to see Duke Nukem.

[958] I don't know about you guys, but I really am.

[959] It's so close to coming out that it's almost off our radar in an E3 sense because we know when we get back we'll probably have a copy waiting for us.

[960] You can just write a review at the show.

[961] It'll be fully playable.

[962] There are a bunch of games coming out, like right during E3.

[963] It's not unprecedented, but certainly a pain in our ass.

[964] For sure.

[965] Infamous 2 and Action.

[966] So EA, I think, is going to actually have a good show because there's a lot of reveals.

[967] Activision, you know, I think they could show something from Bungie, which would be exciting.

[968] They're certainly going to show Diablo.

[969] I mean, they'll show something.

[970] which I think will get people excited.

[971] Hang on real quick.

[972] Talking about EA, something that's kind of been floating in the back of my head lately is wondering about the health of their sports business lately.

[973] I haven't seen numbers or anything, but I've kind of just been getting the sense that...

[974] That it's not what it used to be even just a few years ago.

[975] Well, an NFL lockout is not going to do them any favors.

[976] But I'm speaking even more broadly than that.

[977] Madden has been flat the last few years.

[978] Tiger had been down for two years in a row and popped back up this year.

[979] FIFA has been growing every year.

[980] Obviously, they took that NBA dive last year.

[981] NBA out, which is bad.

[982] So that's a negative.

[983] And then do they do hockey?

[984] They do do hockey.

[985] And they're running unopposed with hockey this year because 2K said they're not.

[986] But that's a small market.

[987] That's half a million units or something.

[988] So there's really – it really comes down to FIFA, Madden, and Tiger.

[989] And FIFA has grown every year Madden flat, Tiger down.

[990] So sports has been okay.

[991] I just wonder if they're going to try and do anything dramatic with that.

[992] I mean they took their stat at MMA.

[993] I don't know if that has another – Yeah, they did.

[994] They tried a whole – remember they did UEFA or UEFA or whatever.

[995] They tried that a couple of years ago, which apparently was okay.

[996] But they kept trying to do brand extensions and obviously MMA and MMA Trainer, which is sports active with an MMA logo on it.

[997] I think that stuff's all over.

[998] I think they're going to just go back to basics and do basic sports games.

[999] Just roster updates.

[1000] And then the question is, do they get baseball back?

[1001] Because Take -Two's exclusive is going to end next year.

[1002] They hate having that.

[1003] They lose so much money on those games.

[1004] But they're contractually obligated to make a new game every year.

[1005] And on their fiscal calls, it's always like, yep, so we lost money on that one again, but can't wait until we get rid of that license.

[1006] Nicktoons baseball.

[1007] They wrote that through Nicktoons MLB or something, and you can play real baseball players against Nickelodeon.

[1008] I don't think I realize that.

[1009] Do they continually take a bath on the MLB game?

[1010] And they openly admit that.

[1011] If they could drop this shit right now, like they would.

[1012] $30 million loss for you.

[1013] There's just nothing to do.

[1014] But doesn't it also do okay for Sony?

[1015] Like Sony has its...

[1016] Yeah, that's part of the reason that Take -Two does poorly is because they signed what they call the third -party exclusives.

[1017] So Sony can make a game and you can do Mario, Slugger, whatever.

[1018] Yeah.

[1019] And that's one of Sony's good games.

[1020] Yeah, Sony kills it on baseball every year.

[1021] Why don't they kill it?

[1022] Critically, that game was a pitching game.

[1023] That was one of my favorite sports games ever, this year's show.

[1024] It's really good.

[1025] The show always gets a lot of props critically.

[1026] And in 3D, it's amazing.

[1027] It really looks good.

[1028] What do you think about 3D at the show?

[1029] Yeah, I think, you know, unfortunately it's going to be...

[1030] more than you care to look at.

[1031] I know you guys don't drink, but if you drink the night before, apparently you have brain damage if you put on 3D glasses, so be careful.

[1032] I think everybody's going to have 3D.

[1033] I think everybody's going to have something to show on 3D.

[1034] I don't even know if Duke Nukem's in 3D.

[1035] That's the kind of game that would look good.

[1036] Did you guys see Uncharted 3?

[1037] That was the first time I've seen a 3D game where I really got it.

[1038] Where, you know, I saw Killzone and I mean I saw the 3D effects but I didn't care.

[1039] Uncharted, it's like I got to get across this room, you know, with fire and embers and shit.

[1040] And you could see, you know, the level design.

[1041] You could see that they really planned it as a 3D game.

[1042] I think that will actually really excite people.

[1043] Do you think consumers care?

[1044] Both consumers who have a 3D TV care.

[1045] But how many?

[1046] So I care.

[1047] I have one.

[1048] Yeah.

[1049] But what does that mean?

[1050] It's a really small market.

[1051] I mean, everyone's shoving it in your face as though this is the thing.

[1052] 3 % of the gaming population or 5 % in the U .S. has a 3D TV.

[1053] And Sony would love it if everyone went out and bought a new television.

[1054] And that's why they're doing it.

[1055] They're promoting it because they want you to buy the Bravia 3D TV, which is a great TV.

[1056] But at the end of the day, you're going to buy whatever.

[1057] You're going to buy the Costco brand.

[1058] You're going to wait until 3D penetrates when you're going to buy a TV anyway and it just happens to come with 3D.

[1059] And I'm thinking by 2013, 2014, every flat panel TV will have 3D.

[1060] I mean, the 3D TV I bought last year was like November or something like that.

[1061] It was like $1 ,200.

[1062] It's like a 50 -inch TV.

[1063] It's not the greatest TV in the world, but I didn't need a great TV.

[1064] I just needed a 3D TV to review some games.

[1065] And it was not an expensive television.

[1066] So we're already at that point where you can get 3D TVs.

[1067] You could have bought three NGPs instead.

[1068] Damn it.

[1069] I just feel like we're still shaking out the tech.

[1070] I feel like we haven't decided upon another standard.

[1071] So this is what I wanted to come on and talk about because we were all talking about over -the -top TV.

[1072] So the trick on 3D, I need to get like – Technical, that's something I know nothing about.

[1073] Please do.

[1074] None of us know.

[1075] The trick I think, do you remember when HD came in?

[1076] Yep.

[1077] And first, early on.

[1078] 1995.

[1079] But early on, you had like two channels.

[1080] And then after like four or five years, you got NBC, CBS, ABC, Fox.

[1081] So you had four.

[1082] And then about five or six years later, they had a bandwidth auction.

[1083] And all of a sudden, you got, you know.

[1084] Bravo HD and A &E HD and every channel.

[1085] All right.

[1086] So right now you have bandwidth for standard def and HD for just about every channel.

[1087] Right.

[1088] Okay.

[1089] That's a lot of channels.

[1090] What happens when we go to 3D?

[1091] You need another band.

[1092] It doesn't exist.

[1093] Right.

[1094] We have to have another bandwidth auction.

[1095] We have to take it from FM.

[1096] We have to take it from something else.

[1097] And I don't think you can do it.

[1098] So you're not going to get every channel in 3D until we start to replace standard def channels.

[1099] And in order to replace standard -deaf channels, everybody has to have an HDTV.

[1100] I think we're 10 years away.

[1101] Do you think that it's super -duper crazy that we are still being throttled by broadcasts?

[1102] Literally by radio waves fucking flying through the air.

[1103] Well, Internet solves that, right?

[1104] Obviously, Internet solves it.

[1105] But we don't have Internet TV.

[1106] Yet.

[1107] That's why I said I want to talk about over the top.

[1108] Yeah.

[1109] So over the top is the solution.

[1110] You do everything through the internet.

[1111] It doesn't matter.

[1112] Right.

[1113] Because you certainly can broadcast.

[1114] Cable can accommodate it and airwaves can accommodate it.

[1115] Cable may, but they have to actually lay new cable.

[1116] So what you're going to get is Disney, of course, because they own ESPN, you know, 1, 2, 3, 4, 5, 12, 17.

[1117] So Disney will just have a dedicated ESPN 3D channel and they totally can do it.

[1118] And the networks can do it.

[1119] But no, Bravo is not going to be in 3D.

[1120] Those Desperate Housewives and Playboy Channel or what do you watch?

[1121] What's porn?

[1122] Hustler.

[1123] Hustler, yeah, Hustler Channel.

[1124] Playboy Channel is too.

[1125] Hustler 3D.

[1126] I'm sorry, but it ain't coming out of your face anymore.

[1127] Exactly.

[1128] Thank God.

[1129] And the reason I asked you if you remember all this is when did most people buy an HGTV?

[1130] And the answer is not when they got cheap.

[1131] The answer is.

[1132] When the content was there.

[1133] When pretty much everything you want to watch was in HD, we all bought one.

[1134] That's how 3D is going to go.

[1135] To bring this back full circle, I bought an HD TV when the video games demanded it.

[1136] That was my entry point.

[1137] So 05, right?

[1138] Yeah, 05, 06 was like, okay, I've gotten to the point where now...

[1139] I need this.

[1140] I need everything to be on widescreen.

[1141] 4x3 doesn't cut it anymore.

[1142] I can't read the text on this screen.

[1143] Oh, God, I need to get a widescreen TV.

[1144] So back to what Jeff was saying about the $1 ,200 3D TV you bought.

[1145] I think you're going to end up with every television will be 3D.

[1146] Every HD TV will be 3D in a couple of years.

[1147] Every TV will have built -in Wi -Fi.

[1148] And once you have that and it can actually talk to your router.

[1149] Why not tune through your PC?

[1150] And of course you will.

[1151] So I think it's all going to kind of – it's going to be over the top that actually saves the day.

[1152] But a lot of guys are going to fight over the top.

[1153] So can Comcast broadcast over the top without the cable?

[1154] I don't know.

[1155] I don't think – you don't need them.

[1156] But you will need an aggregator because you don't want to buy a subscription to each channel for a dollar.

[1157] You're going to want somebody to give you.

[1158] And the problem is, as we go over the top, and this is that Gary Witta, you know, that Twitter thing we had going back and forth.

[1159] Right.

[1160] It was, you know, Witta's like, no, there's only six channels I watch.

[1161] And I'm like, yeah, me too, except I never watched AMC before Mad Men.

[1162] I never watched FX before Sons of Anarchy.

[1163] AMC and FX suddenly kind of stumbled upon the idea that they do it by design.

[1164] Those guys were like, no, no, we need to stay relevant.

[1165] We need original programming.

[1166] So we have HBO now for Game of Thrones or if you're Jeff Green, it's Dream.

[1167] But we get these channels because we want that one show.

[1168] It doesn't make economic sense because I could freaking watch it on Netflix three years from now for free or I can rent the DVD or whatever.

[1169] But that's how all these guys stay relevant.

[1170] We as a society are benefited by the bundle of a million channels because my wife can watch Real Housewives.

[1171] Is that probable?

[1172] I don't even know.

[1173] She can watch that and she can watch the Oprah channel if she cares.

[1174] And I can watch Fox Sports West.

[1175] You know, like I like having a billion channels.

[1176] I don't remember them all, but I have them.

[1177] I also like having the option.

[1178] And the weird thing is I barely watch any television.

[1179] But I have DirecTV and I get.

[1180] As many channels as they will sell me. Me too.

[1181] Just keep it all coming because what if someday I want to watch some television?

[1182] Game of Thrones?

[1183] I'm not watching it.

[1184] That's good.

[1185] And Dexter?

[1186] I've watched a little Dexter.

[1187] The series took a dive.

[1188] All outside scenes in Dexter are my neighborhood.

[1189] Really?

[1190] That's where I live.

[1191] We actually – you don't watch Dexter or you do?

[1192] I have seen a fair amount of Dexter.

[1193] Last year there was a scene where all these bodies fell out of a truck.

[1194] My wife actually called me at work and she's like, I'm out jogging and there's all these bodies on the street.

[1195] She was watching them film it.

[1196] She said it was like really creepy real looking because there were police cars and lights flashing and bodies everywhere.

[1197] And then she said her first clue was when the makeup people kept coming over and spraying the bodies to keep them glistening.

[1198] I imagine if you're not used to that, that might be a little alarming.

[1199] Like, oh, no, we've got to move.

[1200] Actually, the first season, the ice truck killer, and he would dismember the bodies.

[1201] And there was a scene where there was an arm on the sand, and that's right near our house.

[1202] And my wife and I, we were on our little electric boat drinking, and we didn't see anything except we actually saw the arm on the sand with somebody standing over it.

[1203] And then I saw the camera, and I'm like, Wow.

[1204] I thought somebody in my bedroom was murdered and an arm fluttered up.

[1205] Almost had a freak out there.

[1206] It sounds terrifying to live where you are.

[1207] And it was before Dexter was on.

[1208] No, I mean, we didn't even know what Dexter was.

[1209] We were like, what is that?

[1210] Yeah, pretty creepy.

[1211] Yeah, it's very terrifying.

[1212] It's scary because I live there.

[1213] Well, I'm just going to leave that on the side.

[1214] All right, we're bringing it here up to the hour.

[1215] So let's wind this in.

[1216] Let's actually bring it back to games.

[1217] What do you think about that?

[1218] Games?

[1219] Are we talking about video games?

[1220] There was a Dexter iPhone game.

[1221] There was.

[1222] Thoughts?

[1223] Dexter iPhone game?

[1224] We're on the horn here.

[1225] We'll just take it.

[1226] Did they make the Dexter iPhone game in your neighborhood?

[1227] Was that coded in your garage?

[1228] Is NG MoCo having?

[1229] I'm thinking no. Probably GameLoft.

[1230] They pulled up over there.

[1231] All right, I guess let's take it back to.

[1232] To wrap up time here.

[1233] Microsoft.

[1234] We're going to have to see some sort of big Kinect stuff.

[1235] I think we do, and I think we see media stuff.

[1236] Do you think they roll out another revision of the core hardware?

[1237] Do you think there's anything to be gained at this point by making changes there?

[1238] Pretty early, but not really.

[1239] No, I don't think you need to.

[1240] I mean, again, if they would do something like...

[1241] and they can do this as software, turn the hard drive into a DVR, it starts to get really interesting.

[1242] Give you a TV tuner, it's interesting.

[1243] Remember when they were trying to...

[1244] They do that in the UK, like the TV tuner stuff, like some of that Sky.

[1245] They totally can do that in the UK.

[1246] Yeah, they totally can do it.

[1247] I think of Microsoft, and I do think they're smart.

[1248] I think if they really are smart...

[1249] Turn that box into your over -the -top TV receiver.

[1250] We're not talking games.

[1251] I'm sorry.

[1252] But I actually think that's a direction they could go in.

[1253] And that's what I meant by media stuff.

[1254] That box is getting powerful.

[1255] Now, you're going to need a much bigger hard drive because 250 gigs, as you guys know, you can fill up a DVR fast.

[1256] But storage, I bought a 2 -terabyte external drive the other day for $89.

[1257] They are cheap.

[1258] Storage is cheap.

[1259] Maybe they start to get it, if you want to actually have a benefit to games, maybe start putting an SSD in that thing.

[1260] The faster access definitely could have an impact there, too.

[1261] This is no hardware year for Microsoft.

[1262] I don't think so.

[1263] This is pure software.

[1264] This is all their first and second parties.

[1265] Love to hear something out of Rare.

[1266] I don't even know if that studio still fucking exists at this point.

[1267] You keep saying that, but they laid off most of their artists.

[1268] Yeah, there was huge deep cuts happening there.

[1269] I would love a check -in from those guys.

[1270] Connect Sports 2 is coming.

[1271] What were the four logos, the four rare logos?

[1272] I thought that actually meant something.

[1273] They came with the four colors.

[1274] Oh, that was a Christmas card or something, wasn't it?

[1275] Yeah, but there's something going on because every time I see rare now, there's only one of them, but it changes.

[1276] It means something.

[1277] Maybe not.

[1278] Rare conspiracy theory.

[1279] It means the other three games that were in those other logos were the teams that are no longer with them.

[1280] Those colors have been cut.

[1281] Cliff will come out and say Gears bitching and maybe tease some future.

[1282] Yeah, that's another case where if the right money changed hands, maybe Cliff comes out at Sony.

[1283] press conference and reveal some new IP.

[1284] I think that is so coming.

[1285] It may not happen this year, but look, the Epic guys, as much as they love to say they're Xbox, it's like they're all about money.

[1286] They're really all about money.

[1287] They can sell a lot of units on PS3.

[1288] That's coming.

[1289] I don't know if it's coming next week or two weeks, but it's coming.

[1290] Mark Rain will be at my party.

[1291] I'll anticipate carrying like eight devices that run Unreal.

[1292] Look at this thing!

[1293] He has a belt.

[1294] Yeah, he has a utility belt full of smartphones and all this other stuff.

[1295] What I like was the emotion was mid -torso for the belt.

[1296] It wasn't down around the waist.

[1297] This is where it is.

[1298] He's got to lift up his shirt to show you.

[1299] It's like a box.

[1300] He gets hassled at airports.

[1301] He never takes it off.

[1302] People just think he has big boobs and that's not what that is.

[1303] Something halo.

[1304] Something from...

[1305] Molyneux has got to come out and dance something.

[1306] Milo knew.

[1307] Yeah, he's got to spin some crazy bullshit tale.

[1308] We know Forza's coming.

[1309] I'm just trying to think of any other significant...

[1310] They just don't have a whole lot of first party stuff.

[1311] It's weird to think that.

[1312] I think there's something.

[1313] I think there is something.

[1314] But it might be a new IP.

[1315] I don't know.

[1316] The Crytek game?

[1317] New Alan Wake.

[1318] Kingdom or whatever?

[1319] Oh, yeah.

[1320] New Alan Wake something.

[1321] Whatever that something is.

[1322] I hope it's that downloadable thing.

[1323] I hope it is the...

[1324] Oh, the episodic downloadable stuff?

[1325] Yeah, I hope it is that.

[1326] I hope so, too.

[1327] I hope that instead of a Kinect Flashlight game.

[1328] Actually, I'm probably going to get bothered.

[1329] Oh, yeah.

[1330] No peripherals.

[1331] Yeah.

[1332] You are the flashlight.

[1333] That would be cool, though.

[1334] Kinect Flashlight game.

[1335] Big software year.

[1336] I guess the question for both Sony and Microsoft, you know, clearly...

[1337] Sony's going to have NGP stuff.

[1338] Do you see any even remote hinting at future hardware at this point?

[1339] Or do you just keep that shit under wraps?

[1340] Sony, no way, because NGP is what they want to be centerpiece.

[1341] And Microsoft, I think not.

[1342] I don't think...

[1343] I don't...

[1344] Even if they are working on something, it's so not coming out next year.

[1345] Also, Nintendo is not a threat yet.

[1346] It's not until their new machine is proven as – they're somehow able to reproduce a phenomenon.

[1347] Then next year, of course, you'll see something.

[1348] As much as I diss Nintendo on this podcast, it's like Microsoft talks like they're in first place and Nintendo doesn't matter.

[1349] They always have.

[1350] And it's like – and funny that you just kind of – fell into that.

[1351] They're not a threat yet.

[1352] I mean, they're ahead of Microsoft.

[1353] Exactly.

[1354] But Microsoft just doesn't care.

[1355] Nintendo doesn't care either, though.

[1356] They don't brag about it.

[1357] They just know they're winning.

[1358] Screw you guys.

[1359] We don't need to put out a press release every time because we're just beating you.

[1360] We just got the money coming in.

[1361] If the money starts to slow, that will come up with something else.

[1362] Did you guys know that we were making a profit out of hardware the moment we sold it?

[1363] Yeah.

[1364] Fuck you.

[1365] The difference has always been, to me at least, from the outside, is that they're or at least until Kinect happened, that there was always such a huge disparity in the markets that they were shooting for.

[1366] Right, no, absolutely.

[1367] That the audiences were, but you come with Kinect, then no, you're playing Nintendo's game now.

[1368] And that's why almost, you know, like hardcore Kinect games really might not be the right way to go.

[1369] Mass market Kinect games might be the way to go.

[1370] You know, Real Housewives of Beverly Hills Kinect, you know, or Dexter Kinect.

[1371] Or Flashlight Room game where I shine it around, get a look at some stuff.

[1372] That would be cool.

[1373] You are the room.

[1374] You have to have a Hustler TV subscription in order to access that game.

[1375] You have to have the right ISP.

[1376] It's just ESPN3 all over again.

[1377] It's just like the HBO Go stuff.

[1378] Oh, yeah.

[1379] You were the one, right?

[1380] I can't get ESPN3.

[1381] My ISP doesn't support it.

[1382] That's funny.

[1383] I didn't even know that.

[1384] See, for me as someone who doesn't – I canceled my cable last year.

[1385] It's been more and more interesting to me to see how these alternate means are popping up everywhere.

[1386] Like I've got my – My iPad, I've got HBO Go and I've got Hulu Plus.

[1387] But you don't have cable, so how do you get HBO Go?

[1388] Because there are other people that have HBO that don't have an iPad.

[1389] Even just to check it out and just seeing all of these alternate means.

[1390] I've got New Yorker and Wired on my iPad.

[1391] All the old media is...

[1392] The iPad is a phenomenal media device.

[1393] It's so much better than I ever expected.

[1394] That thing seemed crazy when it was coming out.

[1395] I was a doubter of that thing through its entire first year.

[1396] Once they came up with the second one, I picked up the old one for a song.

[1397] Even when I first got it, I'm like, what the fuck am I doing with this thing?

[1398] And it took a while, but eventually I'm like, oh yeah, now I carry it everywhere.

[1399] It has replaced my laptop in a lot of significant ways.

[1400] So I actually think, which we didn't talk about, is Apple going to have anything to say about games?

[1401] No. No, they're doing something like the day before.

[1402] Yeah, but they always have something the day before, GDC or whatever, and it's never about games.

[1403] They don't.

[1404] Games Game Center is an awful piece of software.

[1405] They did it just as a, eh, we should do something.

[1406] Games thrive on iOS almost in spite of Apple.

[1407] It's a weird thing.

[1408] They don't want to acknowledge.

[1409] Steve Jobs wants that thing to be about art and creation.

[1410] There's a lot of people slumming it with video games.

[1411] Even when they showed Infinity Blade.

[1412] And they had Mark Rain and the other guy who came out to show that.

[1413] Don Mustard came out?

[1414] Probably.

[1415] And basically Steve Jobs was just like, well, I guess that's cool.

[1416] And just like shuffled it.

[1417] And of course everyone in the audience is like, holy shit.

[1418] But Steve Jobs is like, they're making all.

[1419] Check out GarageBand on your iPad.

[1420] Virtual drum kits.

[1421] The consumer and the creator.

[1422] Yeah, their relationship with games is fucking weird.

[1423] Okay, anyways, so Nintendo, a huge chunk of time on the hardware.

[1424] We have to spend a lot of time talking, or Nintendo has to spend a lot of time talking.

[1425] I would love to see them spend like 75 % of their time talking about the new machine, then, you know, 20 % on 3DS, and then a little 5 % like, by the way, Zelda's still coming out on the Wii.

[1426] Thank you, good night.

[1427] Like I'm saying, the logo wall of brands and publishers.

[1428] Epic.

[1429] Bungie.

[1430] Yeah, Bungie.

[1431] Bungie.

[1432] Bungie.

[1433] Nintendo.

[1434] You keep saying it.

[1435] Put that in the back.

[1436] It's kind of chanting with the rest of the podcast.

[1437] And similarly for Sony, a lot of time spent on NGP.

[1438] I feel like – You know, actually, I take it back when I said they didn't think they'd apologize.

[1439] Kevin Butler coming out as vice president of security and apologizing would be funny, would defuse the audience.

[1440] That they might do.

[1441] Well, I think apologizing – Does that work last year?

[1442] Apologizing and then being fired.

[1443] Yeah.

[1444] Have him come out and follow the sword.

[1445] My responsibility.

[1446] That would be funny because it would acknowledge it.

[1447] Jack Trent comes out, shoots him.

[1448] Yeah, that would be hilarious.

[1449] No, no, the actor.

[1450] He actually shoots him.

[1451] Jack Trent comes out and murders the actor who plays Kevin Butler.

[1452] I can see Jack Trent shooting a guy.

[1453] It's like Jerry Sanders.

[1454] No, but guess what?

[1455] You'll never see Jack Trent shoot a guy.

[1456] Exactly.

[1457] He's got people to do that for him.

[1458] If it happens, you don't get to tell that tale.

[1459] Yeah, he's like Tony Soprano.

[1460] Jack is from New Jersey.

[1461] See?

[1462] Yeah, it fits.

[1463] I expect to see more, for whatever reason, I expect to see more software for NGP stuff than for whatever Nintendo has in store.

[1464] Yeah, I think it's right.

[1465] I expect Nintendo will be proof of concept, kind of like, we have a Mario Kart or something like that that runs on whatever this thing is.

[1466] So, yeah, so Sony, you know, a lot of really nice ports.

[1467] A lot of really nice ports.

[1468] You know, we'll see more of, I guess, you know, we'll see more Uncharted 3.

[1469] We'll see more Resistance 2.

[1470] We'll see more, or sorry, Resistance 3.

[1471] We'll see more of another game whose title I cannot recall.

[1472] Starhawk.

[1473] Starhawk, thank you.

[1474] Twisted Metal.

[1475] I was trying to think of like just the already in it.

[1476] Twisted Metal.

[1477] Yeah, that you'll see.

[1478] Twisted Metal.

[1479] Get Jaffe out there.

[1480] They're going to come out on the ice cream truck again.

[1481] That's cool.

[1482] I actually didn't know there was a Twisted Metal coming either.

[1483] Total shock to me. They showed that last year.

[1484] You mean the part where every time Keeley saw David Jaffe, he mentioned Twisted Metal to him in kind of a taunting way?

[1485] Yeah, it was really funny.

[1486] And then, what, EA will say Battlefield, Star Wars, Star Wars Battlefield.

[1487] Maybe, you know, you said Resistance.

[1488] Maybe Ted Price gets up at EA and talks about when Insomniac is doing multi -platform because he's publishing through them.

[1489] Yeah, I forgot that game even existed.

[1490] That could be their shooter also.

[1491] You've got a way to talk about that when Resistance 3 is still coming.

[1492] No, but that could be the shooter.

[1493] That could be the first -person shooter they're going to reveal.

[1494] That is certainly a possibility.

[1495] I think that would stop Ted Price.

[1496] Nothing stops Ted Price.

[1497] Ted Price might be the guy that does contract killing for Jack Tretton.

[1498] He kind of looks like he could be an assassin.

[1499] You never suspect him.

[1500] Yeah.

[1501] You're blowing my mind, Michael Paxer.

[1502] He always wears black.

[1503] Yeah.

[1504] He does have kind of a Dexter quality to him.

[1505] He's very tall.

[1506] He's got that smile, that disarming smile, like killer smile.

[1507] Ted Price, boyish good looks.

[1508] Yeah.

[1509] He's only 27.

[1510] Just a little lower than me. Just a hair.

[1511] Well, I think it's going to be an exciting show.

[1512] Yeah.

[1513] I think so, too.

[1514] Regardless of if any of the bullshit we've talked about here actually happens, it's going to be fun.

[1515] It feels like a much more well -rounded year than last year.

[1516] We came into last year.

[1517] It's motion.

[1518] Everyone's talking about motion.

[1519] Everyone's going to roll in their eyes.

[1520] No one really believes in it.

[1521] I know you've got to wrap, but the real question is, do we get any really cool free shit?

[1522] You know?

[1523] I don't think so.

[1524] I don't think, you know, do you beat free Xboxes from last year?

[1525] That was...

[1526] I don't know, you know, like twin free Xboxes.

[1527] I already have the one, though.

[1528] You know, do you put like 3DSs under people's seats or something?

[1529] You get to take home the girl with the machine strapped right this time.

[1530] No kidding.

[1531] Do you think they can strap the new machine to individual models?

[1532] I would love to strap it to Mark Rain.

[1533] It's going to be a long line.

[1534] That's it.

[1535] On that note, we are ending this podcast.

[1536] Michael Pachter.

[1537] Thank you so much, your beautiful man, for coming through here, spending some time, talking bullshit with us here.

[1538] I'm looking forward to dining with you, and thank you for having me. I look forward to seeing you again in Los Angeles.

[1539] You guys should live stream for my party.

[1540] It'd be fun.

[1541] I think we might have to do that.

[1542] We'll liquor you up.

[1543] We'll figure something out.

[1544] We'll figure something out.

[1545] We'll find a mutually beneficial situation there.

[1546] Yeah, so E3, June, what, 7th through the 9th?

[1547] 7th through the 9th.

[1548] Mid -week.

[1549] Press conferences starting on the 6th.

[1550] And maybe the 5th, actually.

[1551] Hey, Konami's press conferences next week.

[1552] That's true.

[1553] I'm flying down.

[1554] We didn't even talk about Konami.

[1555] We don't need to talk about Konami.

[1556] Talk about your X -Factors here.

[1557] Game changers, ladies and gentlemen.

[1558] Dance Dance Revolution, maybe you've heard of it.

[1559] 1 ,000 troops.

[1560] One million.

[1561] Sorry.

[1562] I apologize.

[1563] They're downsized.

[1564] It's 1 ,000 this year.

[1565] I'm going down on the third.

[1566] The rest of the team is coming down on the fourth, so we will be in L .A. solid.

[1567] So look for us then.

[1568] Once again, Michael Pachter, thank you so much for coming and joining us.