Peter Moore is a legend of the game industry. He told us in a fireside chat at our GamesBeat Next 2024 event that he had humble roots as a soccer coach and a shoe salesman. He rose through the ranks at Reebok as a marketer, and then Bernie Stolar asked Moore if he wanted to market video games.<\/p>\n\n\n\n
At the time in the 1990s, Moore didn\u2019t know a thing about video games. <\/p>\n\n\n\n
But he was flexible. He gave it a try and fell in love. Working for Stolar, Moore helped launch the Sega Dreamcast, which sold more than eight million consoles in the U.S. He went on to take leadership positions at Microsoft Xbox, where he presided over the perilous launch of the Xbox 360 game console (remember the Red Rings of Death?). I was there to cover all of that.<\/p>\n\n\n\n
In an interview with my then-colleague Mike Antonucci, Moore unfortunately said, \u201cYa know, things break.\u201d It went far and wide among gamers as a kind of Marie Antoinette quote about \u201clet them eat cake.\u201d I enjoyed those days because Moore was part of a group of executives who verbally insulted each other on a regular basis. To them, it was good marketing. <\/p>\n\n\n\n
Moore helped convince Microsoft CEO Steve Ballmer that they had to replace (600,000) failed game consoles at a cost of $1.15 billion or lose face with gamers. Along the way, he had the Halo 2 November 9 launch date tattooed on his bicep (it wasn\u2019t permanent), as well as the Grand Theft Auto IV launch date on his other bicep. <\/p>\n\n\n\n
Moore went on to take the No. 2 job at Electronic Arts, where he oversaw businesses such as EA Sports, and he also had a successful run as the general manager of the pro soccer team in his hometown, Liverpool FC. He also did a stint at Unity on sports broadcasts before moving into semi-retirement.<\/p>\n\n\n\n
Moore also said he finished his autobiography. I\u2019d be up for reading that. But I\u2019m even more glad he is still around to tell his own story. <\/p>\n\n\n\n
A short time ago, Moore found himself a little lightheaded. His Apple Watch pinged him there was something irregular about his heartbeat: low heart rate, low blood pressure. He figured it was no big deal and he felt like he needed a jolt of coffee at Starbucks. He asked his wife about the watch alert and she told him to stay where he was and she was coming to get him to take him to the hospital. It turns out his heart\u2019s electrical system was failing. That day, doctors operated on him and gave him a pacemaker.<\/p>\n\n\n\n
Here\u2019s an edited transcript of our fireside chat.<\/p>\n\n\n\n GamesBeat: Peter Moore was at Sega. He was also a long-time exec at Microsoft and Xbox, Electronic Arts, and Unity. He was kind enough to write me and say that he was in charge of Liverpool FC and not Manchester like I\u2019d written. He was quiet about that, too. It\u2019s nice to have you here, thanks to your Apple Watch. Can you fill our audience in on that particular story?<\/strong><\/p>\n\n\n\n Peter Moore: <\/strong>Right now? While I\u2019m still here on this stage live? Let\u2019s start with that? Great to see everybody. So many familiar faces. As Dean said, I\u2019ve been around the block a few times. I was just talking outside about when I entered this industry. I had absolutely no clue about video games. I was a shoe guy. I worked at Reebok in Boston since the late \u201890s. I was involved in the sneaker wars. \u201cHow would you like to join the console wars?\u201d<\/p>\n\n\n\n I knew absolutely nothing about video games, but within six months of arriving here in the city\u2013those of you here may remember that Sega in those days was where Zynga still is now, 650 Townsend. That was the Sega headquarters. We were getting ready to launch the Sega Dreamcast. This is in the days of dial-up. We were trying to figure out how to get games to run at 30FPS on a 56K baud modem. PlayStation was already dominant. We were a feisty upstart still recovering from the Sega Saturn, somewhat of a debacle. I immediately fell in love with the industry.<\/p>\n\n\n\n I talk a lot about this\u2013I just finished my autobiography. There are plenty of chapters on this. But I did have that imposter syndrome for those first few months. All down in south of Market, trying to convince people with Bernie Stolar and Chris Kilworth and all of my colleagues that we had a chance with the Dreamcast. We were ready to go. We knew we were leading the way, and we knew the PS2 was coming.<\/p>\n\n\n\n I\u2019ll jump to Dean\u2019s question, which is a lesson for all of us here. That was the time when technology was emerging. Just recently, without any exaggeration, technology saved my life. Only a few months ago in July, I was picking my daughter up. She\u2019s right here. Tara works for EA now. I\u2019m very proud that I have three kids that work in the video game industry at very high levels. I woke up that morning feeling just a little dizzy and light-headed. I live in Santa Barbara now. Like guys do, I thought I\u2019d just have a nonfat latte and I\u2019d feel great. Drove to Santa Barbara airport. My Apple Watch kept pinging me. It said, \u201cLow heart rate. Low blood pressure.\u201d Only then did I start to react. Otherwise I would have just ignored it.<\/p>\n\n\n\n My wife, fortunately, used to work for Fitbit. I took a screenshot of the watch and said, \u201cShould I be concerned?\u201d She said, \u201cDon\u2019t move. I\u2019ll be right there. We\u2019re going to Santa Barbara College Hospital.\u201d What had happened is that the electrical system of my heart had failed. It\u2019s only because my Apple Watch was telling me that I had a problem with my heart. I arrived at the hospital and within minutes I\u2019m in an emergency room. Defibrillator, IV, EKG. I was telling Dean that an ER doctor who needs to work on his bedside manner, he runs in with a piece of paper saying, \u201cThis is not good! This is not good!\u201d It was pretty much a flat line with the occasional beat. My BPM had gone down to 27.<\/p>\n\n\n\n Lesson learned. If all of us have this technology, literally on our wrists\u2013we all think we\u2019re immortal. Plus we\u2019re guys. We\u2019ll just figure out a way past it. But we have the technology we need. We have this ability to be informed and to break through our stubbornness to do something about this. Not the way I wanted to start this, but from a perspective\u2013it\u2019s a lesson. Many of you have that on your wrists right now. Pay attention to it. I\u2019m in good shape. I\u2019m a few months from 70 years of age. I still work out every day. In fact, the day before I\u2019d been on the treadmill, lifted, did everything I normally do. But the electrical system failed, and Apple told me to go to the hospital. My wife as well, but Apple told me first.<\/p>\n\n\n\n There we go. Wear your watch. Look at the data. Learn about yourself. Pay attention.<\/p>\n\n\n\n GamesBeat: This session is all about remembering times long ago and lessons that align. That\u2019s definitely a good one. But tell us about the decision decades ago where you decided to move into games.<\/strong><\/p>\n\n\n\n Moore:<\/strong> I had come to America and needed a real job pretty quickly. A job other than coaching and playing soccer. I became a shoe guy. As an immigrant, you take stock of yourself. In my particular instance, we\u2019re talking about the early \u201880s. I have the gift of gab. I grew up in a pub, so I\u2019m used to integrating with adults. I\u2019m a physical education teacher. That\u2019s all I\u2019m qualified to be. I\u2019m used to convincing people to do things that they really don\u2019t want to do. Going out to play rugby in the snow.<\/p>\n\n\n\n I remember looking in the mirror and thinking, \u201cWhat am I going to do?\u201d You take stock of your own abilities. It worked out well for me. I was able to leverage what I had then along with an English accent. I learned pretty quickly that Americans, when they hear an English accent, naturally think we\u2019re more intelligent, more elegant, more refined. Look, I\u2019m from Liverpool. Nothing could be further from the truth. But once I realized that, my English accent came on thick as I was selling shoes. That worked out well for me.<\/p>\n\n\n\n I went to Reebok in Boston and ended up as head of global sports marketing. But I got a call, as many of us in this room do, from an executive recruiter in late 1998. \u201cWhat do you know about video games?\u201d Really nothing. This was still very much the infancy of the industry. It was perceived as boys in their bedrooms. It was very much seen as a phase people went through. I don\u2019t know what the global revenues were for games in those days, but I\u2019m sure it was the single billions of dollars, if even that.<\/p>\n\n\n\n But what piqued my interest was when the recruiter, a guy called Rick Edwards who I\u2019ll never forget, said, \u201cThis thing is going to be online.\u201d I\u2019m at Reebok using Lotus Notes and trying to figure out how to type. But this idea of gaming going online was intriguing to me. I had the opportunity\u2013the president of Sega of America, Bernie Stolar, believed in me. The theory being, during that period, that if you could sell shoes to teenage boys, your skill set transferred seamlessly over to selling video games. I believed that. I\u2019m not sure it was true, but I believed it at the time, and I moved the family from Boston to San Francisco.<\/p>\n\n\n\n We started working on launching the Dreamcast. We started working on rebuilding the Sega brand from somewhat of a debacle with the Sega Saturn. Getting back to the old days of the Sega Genesis ways. For the first few months, absolutely, the imposter syndrome was heavy and hard for me. I had to get the vernacular right. Who the heck is Activision? Who\u2019s Acclaim? Who\u2019s Namco? Who\u2019s Bandai? Who\u2019s Capcom? I\u2019m on a plane every two weeks from SFO to Narita to meet with Japanese executives. Pretty soon into my tenure, Bernie left, and within six months I became president of Sega of America.<\/p>\n\n\n\n GamesBeat: Bernie was fired shortly before the Dreamcast launch, right?<\/strong><\/p>\n\n\n\n Moore: <\/strong>Bernie left. I was focused on one thing. 9\/9\/99. Getting the VMAs right. Sorting out the best launch lineup for any console ever then, and ever will be, on 9\/9\/99. Actually getting all those games to work, which is a whole separate session as well. Getting all the units we needed into Toys R Us, our number one retailer. A bit of Best Buy, a bit of Wal-Mart, but Toys R Us was where we were going hard and heavy. 9\/9\/99 came along. We had the biggest 24 hours in entertainment retail history. We pushed hard. I figured out that Star Wars\u2013The Phantom Menace was the biggest one they\u2019d ever done, and we blew that out of the water. You\u2019ll find a video of me online somewhere around here, within a few blocks, unveiling a banner with our Japanese execs that came over. We did $99 million that day in hardware and software.<\/p>\n\n\n\n GamesBeat: The interesting marketing problem back then was the government. They were not fans of video games. Games were bad for you. You had to deal with that.<\/strong><\/p>\n\n\n\n Moore: <\/strong>Many of you probably remember those days. Tipper Gore\u2013primarily her focus in those days was music. Parental lyrics. Hardcore rap was coming about, and the lyrics were getting a bit more hardcode. But in early 2000, Sam\u2019s predecessor Doug Lowenstein rings me up and says, \u201cLook, could you come to Washington D.C. to represent the video game industry?\u201d I\u2019d been in the industry a year. \u201cTestify at the McCain-Lieberman hearing.\u201d John McCain and Joe Lieberman were looking at explicit content and how they, the Senate and the government, could control content.<\/p>\n\n\n\n Myself, Strauss Zelnick \u2013 interestingly, representing the music industry at the time in his role at BMG Music \u2013 Jack Valenti, representing movies, and Greg Fischbach of Acclaim, a great old publisher. We testified to John McCain, who was very open-minded to what we were talking about. Look, we have the right to create content that appeals to the generation that is consuming it. We do not feel that it\u2019s our job to censor that content. Now, what we will do, and this is where the ESRB ratings really started to kick in, is build a rating system through the ESRB, which you\u2019re now all familiar with, that will give parents in particular some indication of what the game is all about. M-rated, in those days, was still seen as the death knell for sales. There weren\u2019t enough people that wanted an M-rated game. But we built the rating system.<\/p>\n\n\n\n We had to take on the government, because these were the days when video games were getting the blame for everything. I remember particularly the despicable U.K. tabloids\u2013headlines like \u201cCall of Duty Killer.\u201d Any time they could link\u2013a tragic event involving a young person, they would try to link video games to it. Our job was to be able to disassociate, because research proved there was no linkage from Quake, DOOM\u2013you remember Columbine as well, which I think was Quake and DOOM. We were trying very hard, and succeeded in the end, to say that the fact that someone plays a video game that involves a gun and shooting somebody virtually doesn\u2019t mean they\u2019re going to do it in real life. That was the conversation being had at the highest levels of government. There was this view, which we fought and won, that the government should come down and censor everything we were doing in games, music, TV, and movies.<\/p>\n\n\n\n GamesBeat: It was a fun time, because there were personalities in those days. Executives on different sides always sniping at each other. That doesn\u2019t happen so much anymore. It was nice when the industry had a sense of humor.<\/strong><\/p>\n\n\n\n Moore: <\/strong>I came from the sneaker wars. I\u2019ve said this. I encouraged the console wars. I wanted gamers to think that myself and Jack Tretton and Reggie and even all the way up to Kaz Hirai and Ken Kutaragi were at loggerheads with each other, that we were constantly fighting. The reality couldn\u2019t be further from the truth. But the facade we\u2019d have, particularly at E3 when we\u2019d go on stage, was to take shots, because I think that\u2019s what the industry needed to have this sense of fun, and to distinguish itself from the stiffer media like TV and music and movies.<\/p>\n\n\n\n E3 was a great platform to have so much fun, to do stupid things like tattoos. For me and Jack Tretton to go at it and talk about rubber ducks and all the things that the other guys would do. Even at Sega, and I still have this hanging on my wall\u2013I had a redheaded kid with his tongue out saying we\u2019re sorry to hear about PlayStation\u2019s shipping problems. In those days we could put that in the magazines like EGM and Next Gen and all of that, when print dominated our industry.<\/p>\n\n\n\n The other thing we were trying to do is get real respect and grow. E3 certainly allowed us that platform, to get us away from just being in gaming magazines and this very niche industry that was seen as a phase that teenage boys grow through, and onto the front pages. What were able to at E3\u2013in my later years at Xbox, bringing Bill Gates on stage with me, bringing Steve Ballmer down and giving some credibility. This wasn\u2019t just something that was fun to play and then put it away to do more serious things. This was a serious industry that was grasping the opportunity that online and the nascent social networks offered. We were building all the way from the legacy of Sega.net to when I was at Xbox, building Xbox Live. Then you go through the later years and the subscription services we\u2019re now very familiar with.<\/p>\n\n\n\n GamesBeat: You had that wonderful time during the Xbox 360 with the Red Ring of Death.<\/strong><\/p>\n\n\n\n Moore: <\/strong>That was a blast. Dean and I were talking about this. I was reminiscing about rolling into a meeting to ask Steve Ballmer for $1.15 billion.<\/p>\n\n\n\n GamesBeat: Is that one of the meetings where you came with a baseball bat?<\/strong><\/p>\n\n\n\n Moore:<\/strong> Steve\u2019s a character. I love Steve. The story is pretty simple. We had calculated that we needed $1.15 billion to fix the Red Ring of Death. I always remember this number. We needed $267 million for Fedex to ship boxes overnight, to return boxes overnight, to ship consoles back overnight. You had this first-class service that started to make people think we cared about them. There was a period when we couldn\u2019t say anything.<\/p>\n\n\n\n Dean used to hang out with a guy called Mike Antonucci, who did an interview with me about this in the San Jose Mercury-News. This was a period where we at Microsoft, a publicly traded company, operating under a consent decree from the DOJ at the time as they were trying to break up Microsoft, had to be very careful about what we said about anything. I said something like, \u201cYou know, things break.\u201d That became a Marie Antoinette, \u201cLet them eat cake\u201d moment that just went on forever. Things do break. But from that perspective\u2013again, I look at the age gap here. I saw this as a Tylenol moment. I\u2019ve always talked about it.<\/p>\n\n\n\n If you remember, many of you, there was a tragic night in Chicago in the mid-80s where somebody, who has never been found by the way, decided to inject cyanide into Tylenol bottles on the shelves of drugstores. The next morning, people who had taken Tylenol before they went to bed were dead. You can thank that moment and Johnson and Johnson\u2013they took every piece of merchandise with a Tylenol brand off the shelves overnight. The safety cap that you\u2019re very used to came out of that moment. This concept of not pretending that you don\u2019t have a problem, but immediately acting, is still taught at Harvard Business School. It\u2019s called a Tylenol moment. The Tylenol brand is bigger than ever. I like to think Xbox, the brand, is bigger than ever. But you have these moments where you need to sink or swim.<\/p>\n\n\n\n The thing I always recall from that meeting, I said, \u201cSteve, we have a real problem. If the Xbox brand is to maintain any kind of presence within the Microsoft ecosystem, and certainly within games, we need to spend $1.15 billion right now.\u201d He looked at me and said, \u201cDo it.\u201d That\u2019s what it was. Do it. Microsoft stock didn\u2019t move the next day, I\u2019m glad to say.<\/p>\n\n\n\n GamesBeat: At EA you had to consider the move from retail to digital, direct to consumer. There\u2019s a lot of that still going on today in different ways. What was fun about EA?<\/strong><\/p>\n\n\n\n Moore:<\/strong> Well, my first ever meeting at EA I was still a Microsoft employee. Robbie Bach, my boss, had given me permission. John Riccitiello said, \u201cHey, we have a meeting in New York City that you need to attend. It\u2019s one of those moments in gaming where I\u2019m about to talk about stuff you need to be in the room for.\u201d Robbie, a great friend of mine, incredibly kindly, said, \u201cGet on the plane. Don\u2019t worry about it. Sign an NDA, whatever you need to do.\u201d<\/p>\n\n\n\n The meeting was called the Burning Platform Meeting. This was in early August of 2007 at the W Hotel at Lexington and 56th. I\u2019ll never forget it. I reference this meeting to this day when I talk about leadership and taking risks ahead of time. First slide on the screen was an oil platform in the North Sea. Okay, that\u2019s interesting. Second slide, it\u2019s on fire and falling down. Well, that\u2019s really interesting. It was the concept of the burning platform. Video games was a burning platform. The industry was a burning platform.<\/p>\n\n\n\n What does that mean? The movement toward digital was slow. We were still waiting for broadband to catch up, to be affordable. Hard drives stood to get bigger so we could move to a more digital future. The reliance on discs was still strong. But John said, \u201cThis can\u2019t continue. We\u2019re going to tell our retailers \u2013 GameStop, Best Buy, Wal-Mart, Target \u2013 that we\u2019ll sell you discs, but we\u2019re moving to take your customers.\u201d<\/p>\n\n\n\n More important, in classic JR style, he said, \u201cMany of you won\u2019t be here next year.\u201d I\u2019ll always remember. That was his motion. It was the people who were writing orders for retailers. It was the people who were stocking boxes on shelves. It was the people who were managing supply chain operations for physical media. They were going to be replaced over a number of years with people running global billing systems, customer service, network operations, all of that. John gave everybody fair notice that the company was shifting.<\/p>\n\n\n\n It\u2019s this concept many of you have heard about that Joseph Schumpeter coined, an economist in the aftermath of World War II, called creative destruction. Creative destruction is about recognizing that while your business is going great, you ultimately need to blow it up to be prepared for the future. That\u2019s what creative destruction is all about. We were doing great. We were selling tens of millions of discs. But to John\u2019s credit, he saw the future. If you look at the history of EA during that period\u2013now we\u2019re talking, as we get into the depths of this, we\u2019re putting every penny we\u2019re making into rebuilding the company as a digital company. Delivering content directly to gamers\u2019 hard drives, their phones, their PCs, their consoles.<\/p>\n\n\n\n Retailers hated us for a while. Many of you might remember EA being dubbed the worst company in America two years in a row. A lot of it was to do with this move toward digital. Gamers don\u2019t like change. But hard lessons on that. Stock went down to $10. John left in 2013. But the stock\u2019s at $145 today. Why? Eventually you come out of that trough and all your investment in what you\u2019ve built over years comes out to where all of a sudden you\u2019re hitting 81% gross margins on things like FIFA Ultimate Team. You don\u2019t have to worry about warehouse and supply chain operations and manufacturing. You\u2019re working toward delivering digital subscription models that allow sustainable and consistent and predictable revenue.<\/p>\n\n\n\n GamesBeat: Riccitiello in those days said he didn\u2019t want to pay 30% to physical retailers. It\u2019s interesting that now Tim Sweeney today is saying the same thing to iOS and Android.<\/strong><\/p>\n\n\n\n Moore:<\/strong> Nobody wants to pay 30% to anybody. But the idea of going digital\u2013our margins improved enormously. I always remember these numbers. The operating expenses stayed flat and we put $2 billion on the top line.<\/p>\n\n\n\n GamesBeat: We\u2019re in this period of pain now. What lessons from history can help us through this? Back in the day the consoles were on this five-year boom and bust cycle. Today we don\u2019t know what\u2019s happening.<\/strong><\/p>\n\n\n\n Moore:<\/strong> We went through these periods. If you look at the history of the industry, all the way back to the Commodore 64 and the Apple II, you have these booms and busts. When you don\u2019t have the installed base big enough yet to get the numbers you need, those are the tough years. But all of a sudden installed base and attach rate catch up. Then you\u2019re in those golden years. It may only be two or three years, and then you have to start taking discounts, because your installed base becomes less active. Your attach rate goes down. There\u2019s anticipation for the next PlayStation, the next Xbox or GameCube or Wii or whatever\u2019s coming along.<\/p>\n\n\n\n That\u2019s been flattened out in the most recent decades by things like mobile gaming and the ability to change the business model away from simply getting as many discs sold for $50 as you possibly can before moving on to the next game. You have the free-to-play element that games like Fortnite helped pioneer. You have games like EA Sports FC making multiple billions of dollars a year, the great majority of which is digital. You have this smoothing-out that we always looked for. But it was tough times during that period. As a result, going back to the example I used of JR and this movement away from being a manufacturer of discs where the customer was Wal-Mart or Best Buy\u2013we moved to the customer being Dean Takahashi.<\/p>\n\n\n\n A lot of people got let go from EA and moved on. I like to think all of them have done well. I see so many of them in different roles. The creative destruction had to happen at that moment if EA was going to stay in business.<\/p>\n\n\n\n Question: You mentioned your daughters going into the industry. I\u2019m second generation in the industry as well. My dad was at Atari back in the day. How do you feel about how the culture has changed as your daughters have gone into the industry?<\/strong><\/p>\n\n\n\n Moore: <\/strong>The industry is more diverse, more welcoming, more open. The types of roles\u2013when I joined, it was sales and marketing. You shipped discs and off you go. Developers, I\u2019m not sure there were many women in those development studios. I was working for a Japanese company that had nine studios, and not a woman to be seen if I recall. But the industry has evolved.<\/p>\n\n\n\n It\u2019s funny. I was talking outside about where we at EA used to recruit from. The industry started to change when people like John Riccitiello came in from things like Clorox and Wilson Sporting Goods. My wife Debbie, who worked at EA in trade marketing, came from Heinz. All of a sudden we started to see people taking the industry seriously. At EA, I always recall, as we started to move toward digital, we started to go on campuses. I would do this. MIT, Carnegie Mellon, Stanford, Cal. We\u2019d recruit data analysts, scientists. That never existed in the earlier years.<\/p>\n\n\n\n A serious industry that\u2019s career-driven, where you can see yourself going all the way through the industry to retirement, that\u2019s held in high regard by everyone. Everybody understands the power that video games have in this world today. It\u2019s seen as a legitimate career where technology and entertainment collide at the most amazing level. That\u2019s what I\u2019ve seen over the decades I\u2019ve been involved. I\u2019m proud of my kids being involved. They\u2019re all doing incredibly well.<\/p>\n\n\n\n In Tara\u2019s case she came late to the industry, cutting her teeth in VR. She works in brand, which we badly need. Fully qualified, professional, experienced brand people managing the community, which is always a challenge to say the least. Doing outbound communications about the status of games, managing problems. They\u2019re in crisis management all the time. In the old days I used to wake up and read Kotaku to see what I was going to do that day.<\/p>\n\n\n\n GamesBeat: I remember being on a panel with a young woman in her 20s. I said I grew up at a time when games were considered for nerds, for maladjusted young folks like myself. She said, \u201cWell, ever since I\u2019ve been born, video games have been cool.\u201d That was a big difference.<\/p>\n![\"\"](\"https:\/\/venturebeat.com\/wp-content\/uploads\/2011\/11\/peter-moore.jpg?w=400\")
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