Sony Computer Entertainment America experiencing unprecedented PlayStation sales; PlayStation changes the rules of the game by offering consumers freedom of choice

Business Wire, June 19, 1997

FOSTER CITY, Calif.--(BUSINESS WIRE)--June 19, 1997--Offering videogame players the freedom to choose from an industry leading library of more than 250 diverse, high-quality games, PlayStation software sales have achieved an unparalleled tie-ratio of more than five software games to each PlayStation game console.

In comparison, the Nintendo 64 is only selling 2.5 games per system, according to an industry tracking study, TRSTS, by the NPD Group.

With more than four million PlayStation game consoles already sold in North America -- in comparison with approximately 2.6 million for N64 -- plus more than twice the worldwide installed base of N64, PlayStation is clearly the dominant global and domestic videogame system.

Further cementing its leadership in the new generation videogame market, fiscal 1998 North American PlayStation brand retail sales -- including hardware, software and peripherals -- are expected to exceed $3 billion, with worldwide retail sales expected to exceed $9 billion; again substantiating a dominant domestic and worldwide leadership position.

Sony Computer Entertainment America Inc. expects fiscal year 1998 first and third party software sales of more than 40 million units. In addition to providing the most compelling video game software, Sony Computer Entertainment America Inc. also expects 1998 fiscal year PlayStation hardware sales of six million units, for an expected 1998 fiscal year end cumulative North America installed base exceeding nine million PlayStation units.

"The primary reason behind the PlayStation's success is the fact that we remain keenly aware that consumers make videogame purchases based the quality, rapidly increasing diversity and quantity of PlayStation games, and affordable software pricing," said Ken Kutaragi, chairman and chief executive officer, Sony Computer Entertainment America Inc. "Our unprecedented software sales speak directly to that."

"The degree of global dominance the PlayStation has experienced is unprecedented in the videogame industry," said Kaz Hirai, chief operating officer, Sony Computer Entertainment America. "PlayStation's success is testament to the fact that our business model provides the technologies to assist in creating a wide variety of software. This new concept, the concept of expanding the horizon of videogame entertainment, has been overwhelmingly embraced by gamers."

With leading sports, fighting, platform, action-adventure and role playing games -- and lots of them -- PlayStation offers consumers a comprehensive library of games in every genre. In fact, continuing its solid commitment to diversity in software -- which is made possible on a CD-based platform -- the PlayStation and will introduce 100 new titles at this year's Electronic Entertainment Expo (E3).

As of end of May 1997, the worldwide PlayStation companies have collectively shipped 16 million units of hardware (7.5 million in Japan, 4.8 million in North America and 3.7 million in Europe) and 114 million pieces of software (59 million in Japan, 30 million in North America and 25 million in Europe).

Sony Computer Entertainment America Inc. markets and distributes the PlayStation game console in North America, publishes software for the PlayStation game console, and manages the U.S. third party licensing program. Based in Foster City, Calif., Sony Computer Entertainment America Inc. is a wholly-owned subsidiary of Sony Computer Entertainment Inc.

Visit us on the Web at http://www.playstation.com

CONTACT: Sony Computer Entertainment Inc.

Jeffrey Fox, 415/655-5509

jeffrey_fox@interactive.sony.com

or

Kevin Horn, 415/655-5513

kevin_horn@ interactive.sony.com