You gotta love, and I mean fucking love, when a journalist freaks out an interviewee in the first few minutes of an interview and then lectures the person on why their question isn't outlandish at all.

No, I'm not being sarcastic, I mean it. That's how you get it done, you know your shit and you don't let a scowl scare you away from a question.

Take for instance this fantastic question and follow up by one N'Gai Croal, of Newsweek, during his recent interview with Electronic Arts CEO Larry Probst.

Here's my first question. PS3 is supply constrained and will likely remain so until early 2008. 360 demand is—

Whoa, whoa, whoa. Early 2008?

You don't think so?

I don't think they'll be supply constrained that long. You think all through 2007 they'll be supply constrained?

Well, looking back to the PS2 launch, Sony shipped a million units for the Japanese debut, most of which sold in the first 48 hours. But for the Japanese launch of PS3, they only shipped around 80,000 units, more than ten times fewer machines. So they're nowhere near meeting demand in Japan. In North America, Sony shipped just under 500,000 units for the PS2 launch, but only 200,000 units for the PS3 launch. So they don't have enough supply to meet demand here. Sony launched in Asia with less than 20,000 units. And early next year, they have to start stockpiling units for the European launch in March 2007—assuming that date doesn't slip. So we're looking at four territories where supply probably won't meet demand, and by the time Sony starts to catch up, it'll be holiday 2007, where the combination of big AAA games and gift-giving will increase demand even more.

So you're not believing their projection of 6 million units shipped by the end of March?

That's right, Croal knows his shit and don't forget it. Now hit the jump to watch a master at work.

You absolutely have to read this entire interview, but here are some of my favorite bits of Croal-flavored schooling.

On why EA should have made more Wii games:

But as long as PS3 remains supply constrained, and as long as Xbox 360 demand is falling short of Microsoft's projections, that leaves Nintendo's Wii as the only platform that has both high supply and high demand. Yet the bulk of EA's AAA titles are oriented towards the PS3 and the 360. How have you adjusted your development plans in light of where things stand right now?

We have two titles at launch for the Wii. We will have five or six in the market by the end of our fiscal year [March 31, 2007.] We have a number in the low to mid-teens planned for [the next] fiscal year. I think we're going to catch up pretty quickly in terms of a broader portfolio on that platform.

On Zune bending over users to satisfy Universal Music Group:

Universal Music Group, the largest record label in the world, gets a dollar in royalty from every Zune digital media player that Microsoft sells, in addition to the lion's share of revenue from every one of its songs—

Wait a minute. They get a dollar for every Zune?

Yeah.

Do all of the music companies have that deal?

As far as I know, it's just Universal Music Group.

Why do they get that?

That's a good question for Microsoft. Now as I was saying, your company is the world's largest videogame publisher, yet by contrast, you pay Microsoft a royalty for each and every one of the games you publish for Xbox 360. Given the importance of brands like EA Sports, The Sims, and Need For Speed, shouldn't you expect similar terms for the Xbox 360 as were granted to Universal Music Group for the Zune?

Good idea. I'll take that up with [Microsoft president of entertainment and devices] Robbie Bach the next time I see him. But in all seriousness, Microsoft has been very supportive and a really good partner as a hardware company. We're pretty satisfied with that relationship. So you're telling me that the Warner guys don't have that same deal?

Not as far as I know.

This interview had to, HAD TO, involve at least one spit take. Check back later for parts two and three which delve into why EA hates the PSP so much and Probst's take on Microtransactions and innovation. Brian Crecente

Loot: The Larry Probst Interview, Part I [Newsweek]

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