Sony Computer Entertainment America Lowers Price of PlayStation Game Console to $129

Business Wire, August 25, 1998

FOSTER CITY, Calif.--(BUSINESS WIRE)--August 25, 1998--

Lower Prices on Hardware, Software and Peripherals Make

PlayStation the System to Beat this Holiday Season

Continuing its role as the undisputed industry leader, Sony Computer Entertainment America announced today that effective August 30, its best-selling PlayStation game console will be available to consumers for $129, a more than 10 percent reduction from its current manufacturers suggested retail price. As an additional benefit to consumers, the company also announced lower prices on several PlayStation-branded peripherals and the addition of more than a dozen best-selling games to the "Greatest Hits" collection, a series of the most popular PlayStation games available for as low as $19.99.

In June 1998, Sony Computer Entertainment America introduced a new PlayStation hardware offering packaged with the Dual Shock(TM) Analog Controller and since its market introduction, this model has been widely embraced by consumers and retailers. Because the PlayStation business is experiencing a 60 percent increase in sales from this time last year, the company expects sales of the already popular console to increase following its price reduction to $129, especially among first-time videogame consumers.

"With a PlayStation now in approximately one in every 10 U.S. households, consumers have already demonstrated their overwhelming support and loyalty for our products," said Kaz Hirai, executive vice president and chief operating officer, Sony Computer Entertainment America. "As a result of the popularity of the PlayStation worldwide, Sony Computer Entertainment has been able to grow the gaming category as a whole representing tremendous opportunities for our partners and ultimately, for the consumer. With today's announcement, the PlayStation experience becomes attractive to an even greater audience."

In just three years, PlayStation has become the dominant leader in videogame entertainment, with a North American installed base of more than 11.5 million consoles, and life-to-date software sales exceeding 85 million units. According to the life-to-date figures in the June report from the NPD Group, a leading source of information on the videogame industry, PlayStation currently enjoys an impressive 56.5 percent market share for next generation hardware and 64.2 percent market share for next generation software.

The pricing announcement is accompanied by the addition of several game titles to PlayStation's "Greatest Hits" series. The new "Greatest Hits" inductees include the following: Cool Boarders(TM) 2; Crash Bandicoot 2: Cortex Strikes Back(TM); 1Extreme, formerly known as ESPN(r) Extreme Games; Jet Moto(TM) 2; and Twisted Metal(r) 2. With the new inductees, the "Greatest Hits" collection now includes more than 45 of the top-selling and most popular PlayStation games of all time. Consumers can find "Greatest Hits" titles for an MSRP of $24.99, with many retailers advertising game titles for as low as $19.99.

"With the announcement of our new pricing structure, the PlayStation business is poised to dominate the holiday selling season," said Jack Tretton, vice president, sales, Sony Computer Entertainment America. "It is clear to us that consumers are drawn to the PlayStation because of the ongoing entertainment value of our videogames titles. The `Greatest Hits' series is an excellent opportunity for new PlayStation purchasers to get the very best of PlayStation and for core gamers to add classic titles to their existing libraries."

Also announced today, Sony Computer Entertainment America will lower the price on several PlayStation-branded peripherals. On August 30, consumers will be able to find PlayStation memory cards retailing at a low price of $14.99 and in a variety of new colors, including: black, clear, gray, emerald and blue. In addition, consumers will be able to find lower prices on other peripheral units, including the Digital Controller for $14.99; the Multi-tap for $29.99; and the RFU Adapter for $14.99.

Sony Computer Entertainment America, a division of Sony Computer Entertainment America Inc., markets and distributes the PlayStation game console in North America, develops and 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 America, Foster City

Molly Smith, 650/655-6044

molly_smith@playstation.sony.com

or

Dave Steer, 415/356-1024

steerd@fleishman.com