* On strategy

We wanted to be the guy with the small box that costs less. We wanted to have the most compelling or better than anyone else' s box. We wanted to have the most games. We wanted to play to our software strength, and tools and online. We wanted to get most respects, except for the online capability, we wanted to swap positions with Sony. We wanted to not be a year late, not be a big box, not be a more expensive box. How are we doing on that?

* On Sony

They [Sony] were going to have the Cell be the video processor. But they didn' t know what they were doing. They said the Cell is the video processor. But they turned to Nvidia at the last minute, but Nvidia can' t do embedded DRAM. Go look at the bandwidth problems. Go ask the guys running ... now. They took their year and burned it by not having a decent CPU strategy and then turning to Nvidia at the last minute. It' s a very unusual thing. Those processors are isolated from each other.

Hit the jump for his thoughts on Nintendo.

* On Nintendo

Nintendo of course is a competitor... Say to yourself, how in terms of using a game for a long period of time, what kind of accuracy and capability do you want? Look at the classic Nintendo positioning. Look at the graphics. Look at Nintendo' s execution in terms of online capability. We have this thing that nobody has ever seen before. When you say to your friend, hey let' s play online, you say then you have to buy an Xbox. That' s what 10 million people say. If you want to play online, get an Xbox. We' re not standing still. Look at what you saw today connecting up the world to the Windows PC. Do you expect Nintendo to rev up a team to create cross-device gaming and tool kits to develop those things? Not very likely. We clearly think that Nintendo did some things right.