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January 14 2004

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SONY COMPUTER ENTERTAINMENT AMERICA’S HOLIDAY SALES CARRY INDUSTRY IN KEY SELLING SEASON, GENERATING $2 BILLION IN RETAIL REVENUE

Untitled Document FOR IMMEDIATE RELEASE

Sony Computer Entertainment America's holiday Sales Carry Industry in Key Selling season, Generating $2 Billion in Retail Revenue

Global Company Achieves 70-Million-Unit Shipment Milestone on PlayStation®2, Creating New Growth Opportunities and Industry-Wide Confidence in 2004

FOSTER CITY, Calif., January 14, 2004 Sony Computer Entertainment America Inc. announced today impressive holiday sales results that will help fuel the momentum behind the videogame category as a whole for optimistic 2004 forecasts. The company delivered on its promise to expand the massive PlayStation®2 community in North America, greatly outperforming competitive offerings. The global success of the PlayStation business, unique among current platforms, is further demonstrated by a simultaneous announcement by Sony Computer Entertainment Inc. that highlights a historic worldwide product shipment milestone of more than 70 million PlayStation 2 units life to date.

Despite a competitive pricing environment, Sony Computer Entertainment America continued to grow its massive consumer user base by adding close to three million additional PlayStation 2 hardware units during the key holiday selling season. Specifically, Sony Computer Entertainment America sold more than 500,000 PlayStation 2 computer entertainment systems in November and more than 2 million additional units during December. More than 31 percent of PlayStation 2 hardware sales came as a result of the newly introduced PlayStation®2 Combo Pack [includes the PlayStation 2 console, Network Adaptor (Ethernet/modem) (for PlayStation®2), and a copy of the online-enabled game, ATV Offroad Fury® 2] at a $199 suggested retail price. These figures helped propel the North America PlayStation 2 installed base to more than 24.5 million units in 38 months on the market, another industry first.

In its ninth holiday season on the market, the original PlayStation® game console has evolved as a cultural icon by posting sales of nearly 600,000 units in November and December. Fueled by the PS one® console suggested retail pricing at $49, and with more than 1,400 games to choose from and an optional LCD screen for convenient portability, Sony Computer Entertainment America continues its unprecedented ability to extend the lifecycle for in-home console gaming beyond the assumed five-year period. With an installed base of 37 million, a PlayStation or PS one console can be found in more than one out of every three U.S. households.

Sony Computer Entertainment America continues to be the driving force behind the videogame industry's growth, momentum and success. As leaders, we shoulder the responsibility of the industry, and we take this responsibility very seriously, said Jack Tretton, executive vice president, Sony Computer Entertainment America. The PlayStation market penetration rate continues to astound. We have sold more than 37 million units of the original PlayStation in North America, maintaining popularity nearly a decade after its introduction. PlayStation 2, at just three years old and with more than 24.5 million gamers, continues to set new marks for achievement, currently selling 37 percent better than the original PlayStation at the same point in the product lifecycle.

In addition to success in North America, Sony Computer Entertainment Inc. also announced that it had exceeded worldwide shipments of more than 70 million units on PlayStation 2. The territory breakdown is as follows:

PlayStation 2 Cumulative Shipments by Territory (as of January 13, 2004)

  • Japan (including Asia) 16.18 million units (launch date: March 4, 2000)
  • North America 29.26 million units (launch date: October 26, 2000)
  • Europe/PAL 24.56 million units (launch date: November 24, 2000)

  • Worldwide Shipments: 70 million units


    Software Sales Soar with Strong First Party Performance

    Driven to increase its first-party market share, Sony Computer Entertainment America released a landslide of big-hit properties during 2003. Total first party PlayStation 2 software sales increased in November and December, up 129 percent from the two months prior, and up four percent versus the same timeframe one year ago, through key titles such as SOCOM II: U.S. Navy SEALs, Jak II, Ratchet & Clank: Going Commando and EyeToy. Overall first party sales volume for the holidays, which includes front-line software and Greatest Hits titles for both PlayStation and PlayStation 2, achieved close to the five million-unit mark.

    New Audiences Attracted to Innovative Software & Technology Advances

    Consumers also demonstrated their excitement over the latest innovations from PlayStation through their purchases this holiday season, including EyeToy and online gaming, attracting an entire new audience of gamers to the platform.

    Taking part in the much-anticipated, one-of-a-kind gameplay experience available only on PlayStation 2, consumers bought more than 400,000 units of the EyeToy, which includes the EyeToy USB camera and the EyeToy: Play game disc, in its two months on the market. Named by industry watchers as one of the hottest toys of the season and lauded as one of the most innovative new products, EyeToy features unique motion-tracking technology to enable gamers to become physically part of the game where players use their hands, head, knees and more.

    The success of EyeToy demonstrates Sony Computer Entertainment America's unique ability to expand the experience of PlayStation 2 to include additional forms of entertainment. The company's ability to deliver a fun and easy-to-use interactive entertainment experience is a distinguishing factor among its competitors. In the month of November alone, EyeToy sold nearly eight times more than Music Mixer, Microsoft's attempt to expand Xbox beyond the gaming experience.

    Additionally, Sony Computer Entertainment America has demonstrated innovation by being the first to bring online console gaming to the masses. Consumers this holiday season showed vast interest in the PlayStation 2 online community with this sector also leading holiday gift giving. While the competition struggles to move beyond their core audience to achieve critical mass, the PlayStation 2 community has already surpassed 2.4 million connected consoles.

    SOCOM II: U.S. Navy SEALs, the sequel to the number one online console game, proved to be a key driver in growing the online gaming business, with close to one million units sold in its first two months of release. The first party hit is well on its way to becoming the most trafficked online title on any platform. During their holiday vacations this year, up to 33,000 simultaneous users spent their time online, logging more than 10 million hours of gameplay on SOCOM II.

    About Sony Computer Entertainment America Inc.

    Sony Computer Entertainment America Inc. continues to redefine the entertainment lifestyle with its PlayStation® and PS one game console, and the PlayStation®2 computer entertainment system. The PlayStation 2 computer entertainment system is set to revolutionize the home entertainment market, offering the most compelling interactive content and 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 family of products and develops, publishes, markets and distributes software for the PS one game console and the 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.

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