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Business Wars

Xbox vs Playstation (REMIX) | The Betrayal | 2

Business Wars

Wondery

History, Business, David Brown, Management

4.613.2K Ratings

🗓️ 27 December 2023

⏱️ 41 minutes

🧾️ Download transcript

Summary

It’s 2002 and the race to build the next generation of game consoles is already underway. And Sony’s got big plans for the PlayStation 3. It wants to use it to introduce a new kind of computer architecture and it’s teamed up with Toshiba and IBM to do it.

But with Microsoft’s gunning to get its next console, the Xbox 360, into stores first, IBM spies a golden opportunity. IBM can make huge profits by partnering with both rivals in the console war.

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Transcript

Click on a timestamp to play from that location

0:00.0

February 2001, Austin, Texas, nine months before the first Xbox launches.

0:15.0

David Chippy enters the Ginger Man bar and waits for his eyes to adjust to the gloom.

0:20.0

He's a microchip designer with unruly hair, and he's here to meet a former colleague from IBM about a top-secret job.

0:28.0

Shippy!

0:30.0

Shippy turns and sees his IBM pal Jim Kale waving at him from a corner booth.

0:34.8

Ha ha, good to see you. You too, man.

0:39.0

Kale signals the waitress for two beers.

0:41.0

Shippy slips into the booth.

0:43.0

So, why all the secrecy? You working for the CIA or something?

0:47.0

How the kids? They're fine.

0:49.0

You're just going to leave me hanging about this job, aren't you?

0:52.0

Hey, yep. The waitress. You're just going to leave me hanging about this job, aren't you?

0:52.6

Hey, yep.

0:54.1

The waitress delivers the beers.

0:56.7

After she leaves, Kale leans forward conspiratorially.

1:01.1

IBM Tushiba and Sonia formed a joint venture to develop the microprocessor for the next PlayStation.

1:07.0

Shippy figures this chip must be a big deal

1:10.0

if those three tech giants of joint forces, Kale leans closer.

1:15.0

Sony wants it kept quiet so Microsoft and Nintendo don't know what it's doing.

1:20.0

Ken Kuduragi instigated it.

1:22.0

Kale notices the blank look on Shippy's face.

1:25.0

You don't know who Kutaragi is, do you?

...

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