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January 21 2004

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GAMING INDUSTRY ENJOYS BIGGEST SOFTWARE YEAR TO DATE IN 2003, ACCORDING TO MARKET RESEARCH GROUP

Untitled Document FOR IMMEDIATE RELEASE

GAMING INDUSTRY ENJOYS BIGGEST SOFTWARE YEAR TO DATE IN 2003, ACCORDING TO MARKET RESEARCH GROUP

PlayStation® Platforms Capture 60 Percent of Total Industry Dollars Reaping Big Rewards for Partners

FOSTER CITY, Calif., January 21, 2004 With a massive installed base of more than 24.5 million on PlayStation®2 and more than 37 million PlayStation gamers, Sony Computer Entertainment America Inc. announced today record-breaking software sales for 2003. Demand for PlayStation software reached an all-time high with total sales closing in on 100 million units during this period, driven by a more than 24 percent increase in PlayStation 2 software sales year-over-year. Further validating Sony Computer Entertainment America as the partner of choice among retailers and publishers alike, the PlayStation platform businesses generated nearly $5 billion in revenue in 2003, more than 60 percent of the total industry volume, according to The NPD Group (NPD Funworld reports).

Rapid consumer adoption can be attributed to four key factors in 2003 millions of new hardware purchases, great gaming content, a large, diverse library to choose from, and the proliferation of console online gaming. The PlayStation 2 market continued to be the keystone to growth in 2003, as the industry evolved to meet the demand of this impressive user base. PlayStation 2 comprises more than 66 percent of the home console life-to-date market share, with its closest competitor at less than 20 percent, according to NPD Funworld.

In 2003, the massive PlayStation community proved yet again the enviable advantage of strength-in-numbers as games for the number one selling platforms flew off the shelves in record amounts. PlayStation 2 software led the industry with close to $3 billion in total videogame sales for the year, nearly three times as much as its closest competitor, according to NPD Funworld. Due to the wide variety of software titles available, nearly 700 options , the PlayStation 2 software-to-hardware tie ratio reached an unprecedented 12.4 to 1, the highest among next generation platforms, with nearly 80 million units sold in 2003, according to NPD Funworld.

Among the most highly sought after games during the year were Sony Computer Entertainment America's first party software titles, with unit sales of its PlayStation 2 catalog realizing a 30 percent increase over last year. With an outstanding performance in 2003, in large part due to the expansion of successful franchises and the introduction of exceptional new content, Sony Computer Entertainment America launches into the new year having earned its role as one of the premier publishers in the industry.

Additionally, PlayStation 2 was the perfect host to the third party community, providing a prosperous venue for the most in-demand titles from top publishers. During the month of December, nine out of the top 10 software titles were on PlayStation 2, according to NPD Funworld. In 2003, PlayStation 2 titles comprised 74 percent of the top 10 sales volume, with Electronic Arts' smash hit Madden NFL 2004 , a PlayStation 2 online exclusive, achieving the top ranking for the year. This title dominated the charts, in large part due to its success on PlayStation 2, where it achieved an overwhelming 77 percent of total sales.

With record-breaking software sales this year, our partners are yet again realizing the benefits of aligning with the strongest name in the business backed by the most expansive community with an incurable desire for the best in entertainment, said Jack Tretton, executive vice president, Sony Computer Entertainment America. In 2004, we will continue to evolve our platforms and challenge the publishing community to push themselves even further to leverage the incredible power of PlayStation.

Creating a unique opportunity for content providers and third party publishers, the PlayStation 2 online community grew to more than 2.4 million connected consoles in North America . The first online console community is also the most popular, with the PlayStation 2 online base growing nearly three times as fast as that of Microsoft's Xbox Live. As the online community grows in popularity, demand for online titles are hitting an all-time high, as seven of the top 10 PlayStation 2 software titles in December were online enabled, according to NPD Funworld. PlayStation 2 online devotees purchased first party titles such as SOCOM II: U.S. Navy SEALs and third party online titles including Need for Speed Underground and Medal of Honor Rising Sun from Electronic Arts.

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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