Sony Computer Entertainment America Experiences Exponential PlayStation Sales of Nearly One Million Units At $99; Escalating Demand Causes Company to Project $1 Billion Holiday Season for PlayStation

Business Wire, Nov 1, 1999

FOSTER CITY, Calif.--(BUSINESS WIRE)--Nov. 1, 1999--

Consumers have enthusiastically embraced Sony Computer Entertainment America's efforts to bring its best-selling PlayStation(R) game console to the widest audience by purchasing one million units since the console's price was reduced to $99 just two months ago. This brings the total PlayStation installed base to more than 21 million units in North America, or one in more than every five U.S. homes.

Reaching this important sales milestone so rapidly after the price reduction has brightened the company's already positive outlook for sales of both hardware and software through the 1999 holiday season and beyond. In addition to the existing consumer demand for PlayStation, Sony Computer Entertainment America is undertaking its most ambitious marketing campaign to date with a $150 million spend. This is the most expansive marketing program ever for the platform and is intended to make the PlayStation name and brand ubiquitous in the North American market.

"In just four years, we have achieved phenomenal results by making the PlayStation system appealing to a broader audience than any system in history and our sales figures indicate that the demand for PlayStation continues to escalate," said Kaz Hirai, president and chief operating officer, Sony Computer Entertainment America. "Our goal is to make the PlayStation family of products - hardware, software and peripherals - impulse purchases for consumers, and to offer access to videogame entertainment for people of all ages."

"The retail outlook has never been better as we continue to see a strong desire for PlayStation in the marketplace," said Jack Tretton, vice president, sales, Sony Computer Entertainment America.

Strong sales of the lower-priced console have also driven consumer demand of software for the system. Since August 16th - when the company announced the console's lower price and the addition of new titles to its "Greatest Hits" library - more than six million software units have been sold, keeping the company on track with its own phenomenal sales during the same period in 1998. The "Greatest Hits" line-up is a series of the most popular PlayStation games, available for as low as $19.99.

The sustained vigor in PlayStation sales has caused the company to recast its overall holiday retail outlook for 1999. The company expects overall retail sales of PlayStation branded products - which includes hardware, software and peripheral units - to top more than $1 billion for the 1999 holiday selling season.

"In November and December of 1998, we sold four million PlayStation consoles," said Tretton. "We are on track in 1999 to keep up with the pace we established last year. The $99 price point, coupled with the sustained demand for the console and its games library, will result in strong sales for the PlayStation category overall, leaving us poised to dominate our fifth holiday season."

With continued strength in both hardware and software, Sony Computer Entertainment America continues to retain its commanding lead in the videogame industry, a lead it has held for more than 29 months. Based on the life-to-date figures in the September TRSTS reports from the NPD Group, a leading source of information on the videogame industry, PlayStation commands more than 61 percent of the overall next generation hardware market and 67 percent of the overall next generation software market, despite the competitive environment. In addition, PlayStation continues to lead the industry with an impressive software-to-hardware tie ratio of 6.9 to 1.

The NPD Group recently estimated that the overall videogame industry could top $7 billion in 1999, outpacing the Hollywood film industry. Sony Computer Entertainment America executives see major holiday software releases driving this continued growth, expanding the category among first-time gamers and expanding the game libraries of long-time fans.

Recent software blockbusters have included NFL GameDay(TM) 2000 from 989 Studios, Madden NFL(TM) 2000 from EA Sports, Final Fantasy(R) VIII from SquareSoft, Dino Crisis(TM) from Capcom, WWF(TM) Attitude from Acclaim and Pac-Man World 20th Anniversary from Namco. Top hits for the holidays include CTR (Crash Team Racing)(TM), Spyro (2): Ripto's Rage!(TM) and Gran Turismo(TM) 2, among others.

Sony Computer Entertainment America, a division of Sony Computer Entertainment America Inc., markets the PlayStation game console for distribution 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.