Sony Computer Entertainment America Inc. Announces Launch Schedule For Playstation(R)2 Computer Entertainment System Company Prepares for the Biggest Consumer Electronics Launch in History


Wednesday September 27, 2000


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Sony Computer Entertainment America Inc. Announces Launch Schedule For Playstation(R)2 Computer Entertainment System Company Prepares for the Biggest Consumer Electronics Launch in History

As the company prepares to release the highly-anticipated PlayStation(R)2 computer entertainment system in the North American market, Sony Computer Entertainment America Inc. announced today the schedule of launch activities to support the biggest consumer electronics launch in history.

With an unprecedented library of software and backed by an extensive marketing campaign, the company is aiming to ship three million units by the close of fiscal year 2001, ending March 31, 2001. This figure is part of the company's total 10 million-unit worldwide production estimate for the product, within the same time period.

Presenting the largest software library ever assembled for a home entertainment product, coupled with the most ambitious company-backed marketing initiative, the PlayStation 2 launch will set new industry standards as Sony Computer Entertainment continues its role as the driving force behind computer entertainment.

Twenty-six software titles will be available at launch on October 26, with more than 50 titles released in time for the holidays. Additionally, 270 titles are currently in development for PlayStation 2 and 301 content developers and publishers are signed up to create titles for the system, accounting for most of the software development community. Combine the more than 800 PlayStation titles currently available with the ability to play this library on PlayStation 2, and the new system boasts the broadest software catalog ever created.

To support the upcoming product introduction in North America, Sony Computer Entertainment America will kick off its marketing campaign in October. Wide-ranging marketing support for the PlayStation 2 launch and its software offerings will include extensive advertising efforts (print, TV, cinema, outdoor, viral, online), promotions, sponsorships, direct and channel marketing.

Consumer exposure to PlayStation 2 will target new and emerging American popular culture, including television advertising during "The Simpsons," hands-on trial at Super Bowl XXXV events, "underground" sponsorships such as the Raveworld tour, and an in-theater trailer featuring the PlayStation 2 launch library, projected to reach more than 48 million movie goers.

In order to meet the overwhelming demand for the PlayStation 2 computer entertainment system worldwide, Sony Computer Entertainment Inc. is ramping up production capacity from 400,000 units a month to more than one million units a month in the fall, with a further increase to 1.4 million units by the end of 2000. Due to a components supply shortage, the company is tracking approximately one month behind in production. This is not expected to impact the previously announced worldwide fiscal year 2001 PlayStation 2 shipment figures.

As a result, Sony Computer Entertainment America announced that it would modify the original launch plans so that the market is supplied with a continuous flow of product during the holiday selling season. For its North American debut on October 26, 2000, the company plans to ship 500,000 units of the PlayStation 2 computer entertainment system, followed by shipments of approximately 100,000 units per week through the holiday season.

Just two months following its launch, the company estimates that a total of 1.3 million units will be shipped into the North American market, a historic milestone for the industry. "As we prepare for the release of the PlayStation 2 computer entertainment system, we are continually overwhelmed with the amount of support garnered on behalf of the product from retailers, consumers and the third party development community," said Kaz Hirai, president and chief operating officer, Sony Computer Entertainment America Inc. "We are confident that in light of the huge installed base of the original PlayStation, now available in one out of every three U.S. households, combined with the ability to play the existing PlayStation software catalog, the PlayStation 2 launch in North American will prove to be an unrivaled success, truly demonstrating the company's innovation and leadership as the driving force behind computer entertainment."

Sony Computer Entertainment America Inc. continues to redefine the entertainment lifestyle with its PlayStation(R) game console and the upcoming PlayStation(R)2 computer entertainment system. As the best-selling home console of all time, a PlayStation can be found in more than one out of every four U.S. households. The PlayStation 2 computer entertainment system is set to revolutionize the home entertainment market, doubling as a videogame system and a DVD-Video player, while incorporating the capability to be used as a network terminal in the coming broadband era.

Recognized as the undisputed industry leader, Sony Computer Entertainment America Inc. markets the PlayStation game console and develops, publishes, markets and distributes software for the PlayStation game console and the upcoming PlayStation 2 computer entertainment system for the North American market. Based in Foster City, Calif., Sony Computer Entertainment America Inc. serves as headquarters for all North American operations and is a wholly-owned subsidiary of Sony Computer Entertainment Inc..


In the Conference call they expended on the press release

The original PlayStation was launch with 100 000 units now the PlayStation 2 will launched with 500 000 units instead of their original forecast at the E3 which was 1 million units.

Now the production is about 400 000 units per months but it is climbing to reach 1 million and then to 1.4 million as soon as they can. Presently they shortage is 1 month behind demand.

They have called the retailers and the third part developers to advice them of this change this afternoon before this conference call. The distribution channel will be spread over 22 000 doors because of the change they all will be reduce to half of it approximately. The amount of distribution was not disclosed but it is normal business practice not to disclose the actual amount. Also the online effort has not been determined yet. Sony also said that they have been discouraging retailers in taking pre-order because the set amount has not been disclosed yet.

The break down until Sony's end of their fiscal year - March 2001- is still the same 10 millions all together meaning approximately 7 for the Japan market and 3 for the American and the European markets together. So far over 3 millions units has been sold for the Japanese market. The units that will be offer at the European launch is still unknown and will be announce in the coming weeks. Since they are still on track with their fiscal end year it should bring 1.5 Billion in revenues at the year end.

They confirmed that the component supply shortage was not from the DVD part and that they will not disclose which actual component supply is slowing down the production but they said that the matter is being solve.

Concerning the softwares 15 was announce for the launch at E3 and now they confirmed 26 and up to 50 for Christmas will be ready. Plus of course the 800 titles that are actually on the market since the PlayStation 2 has the ability to play all the previous PlayStation's software since it is backward compatible.

The actual line-up and titles will be release in the coming weeks.

Concerning the PS one the units sold should be 8 millions be the end of their fiscal year.


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