ony's PlayStation 3 has endured a fair amount of criticism--both fair and unfair--since its launch late last year. The company has remained steadfast about its product, addressing hardware problems through system updates and rolling out improvements to its PlayStation Network. We spoke with Phil Harrison about the company's online plans, its software strategies and how it views the loss of formerly exclusive titles.

Game Informer: You obviously had a very successful holiday.

Phil Harrison: Yeah, I went on vacation to Australia, so it was great. (Laughs) Oh, you mean professionally? Sorry.

GI: When we spoke in San Francisco at the PlayStation event in the fall, I asked you about what your biggest challenge was heading into launch, and you said that it was supply. Now that there’s ample supply—at least we’re seeing that in the states—what do you think your next biggest challenge is to overcome?

Harrison: Good question. I think there are a couple. I think continuing to introduce great games on PlayStation 3 on disc is crucial for maintaining momentum—not just this year, but the next four or five years. I think building out the functionality and content offerings of the PlayStation Network, those would be the two we’re focused on going forward.

GI: One thing we’ve noticed in the last year or so is a lot of the games that were originally PS3 exclusives or that would normally launch on a PlayStation platform early—like Grand Theft Auto, Assassin’s Creed, Virtua Fighter—things like that are also going to appear on 360 as well. It’s been said that Sony wasn’t as aggressive this time around with the PlayStation 3. What’s your response to that?

Harrison: It’s a recurring question, actually, so I’m very interested why this is such a hot topic. First of all, the trend that you described is very understandable, given the cost of development and investment that third-party publishers are making in their IP. So, at this stage in the lifecycle of the PlayStation 3, it doesn’t really surprise me. But, you’ve got to also understand the balancing benefit with the investment we’ve made with worldwide studios. You know, we are the largest platform-dedicated game developer in the world. We have more resources building more exclusive titles for PlayStation 3 than our competitors have for their platforms. Not just for disc-based, but for the network as well. That, combined with some very meaningful exclusives the likes of Metal Gear Solid 4 and Final Fantasy XIII. I actually think that net net, there will be more exclusive titles for the PlayStation 3—it’s just the place that they come from may have shifted a little bit. And that’s ultimately all that matters—when a consumer goes into the store to buy a game, they don’t care that MotorStorm comes from one studio or Heavenly Sword comes from another or Lair or Warhawk or GT5 or Everybody’s Golf or Afrika or you name it.

GI: Square fans would say, “I like Square games,” and go and buy Square games. Or even Factor 5 games. People on the GameCube side who played all the Rogue series would say, “Sweet, Lair is made by Factor 5.”

Harrison: That has absolute credibility. That’s why I’m pleased that we have a Square-Enix exclusive.

GI: During one of the questions today with N’Gai, you brought up the unified ID on the PlayStation Network, which a lot of people are saying that’s something that’s needed. When do you see that happening?

Harrison: Well, we have it now. I think what you’re perhaps pointing to is that Resistance: Fall of Man didn’t completely adopt it. And that was a calculated decision. It was not something that I regret doing, but it was better to have that game day one with the features that it had, with the functionality that it had. We will see games adopting single sign-on for their online functionality going forward.

GI: Will that be across the PSP, too?

Harrison: Eventually, yes.