Sony Computer Entertainment America Celebrates One Year of Online Gaming In the Comfort of the Living Room

Sony Computer Entertainment America
Celebrates One Year of Online Gaming In the Comfort of the Living Room

PlayStation 2 Online Delivers an
Entertainment Experience With Mass-Market Appeal

FOSTER CITY, Calif., Aug. 26 /PRNewswire/ —
Just one year after Sony Computer Entertainment America led the industry by
introducing online gaming in the living room, the company today announced the
PlayStation(R)2 online community is nearing critical mass with more than 780,000
gamers with online connectivity. While the company celebrates the
accomplishments achieved over the last year, Sony Computer Entertainment America
continues to broaden the potential of the online gaming market by delivering an
exciting mass-market entertainment experience that taps into the fundamental
need for community through camaraderie and competition.

Last August, Sony Computer Entertainment
America brought online gaming from the back-dens and offices to the living rooms
of North America with the launch of the Network Adaptor (Ethernet/modem) (for
PlayStation(R)2), the gateway to the PlayStation 2 online arena. A year later,
Sony Computer Entertainment America has established itself as the leader in the
online console gaming market, earning this distinction by empowering the largest
online gaming community with choice, value, easy access and the best online
games available. Earlier this month, Sony Computer Entertainment America
announced plans to accelerate further growth of its online community by making
it even easier and more enticing for consumers to get online. The company
introduced the PlayStation 2 Combo Pack, a special offer that includes the
PlayStation 2 computer entertainment system, Network Adaptor, and a copy of the
online-enabled game, ATV Offroad Fury(TM) 2, all for $199 suggested retail
price. The PlayStation 2 Combo Pack provides consumers with a turnkey solution
for online gaming by providing the console, connectivity and content all in one
package, just in time for the holidays.

A Solution Fit for the Masses

More than two years ago, Sony Computer
Entertainment America led the industry by building key strategies with the
potential to create an online gaming community in millions of homes across the
nation. The company approached the launch of online gaming with a unique
understanding of what attracts the mass-market consumer and how to empower the
creative community to deliver an entertainment experience worthy of the living
room. Sony Computer Entertainment America focused on creating an open platform
for developers and publishers, giving them the flexibility and control needed to
create compelling content that would engage consumers online. In addition, the
open platform provided PlayStation 2 partners with a sound business model as
they were empowered with control over intellectual property, distribution, the
customer relationship and revenue streams. The result was an environment that
thrived on success of all involved parties, not just the platform holder.

"To make online console gaming a success and
get consumers comfortable with being online in front of their TV, we needed to
create an experience that would meet the standards consumers expect when they
sit down in their living room — it has to be fun, compelling content that is
easy to enjoy and value priced," said Kaz Hirai, president and chief operating
officer, Sony Computer Entertainment America Inc. "We attribute this philosophy
to the success we’ve achieved not only with online gaming, but with the
PlayStation 2 platform overall. From the very beginning, we developed a platform
with the right mix of technology and consumer appeal for its time, but one that
would also evolve with our consumers, a system that we could seamlessly enhance
and expand when the time was right. As a result, we’ve penetrated the mass
market more quickly than anyone expected with more than 20 million gamers to
date."

Milestones Along the Road of Year One

In the first year of its life, PlayStation 2
Online surpassed all expectations and racked up a series of key milestones in
the process. At launch, the company projected that it would ship 500,000 Network
Adaptors in the fiscal year in its quest to lead consumers online. Proving that
the company could successfully sell a peripheral to create an online market,
Sony Computer Entertainment America not only met but also doubled the forecasted
amount of Network Adaptors, shipping more than one million units in the fiscal
year. In addition to growing demand for online gaming, over the last year the
company also penetrated the PlayStation 2 platform into the mass-market circle
more quickly than anticipated, nearly doubling the size of the installed base
from 11 million to more than 20 million in just 12 months.

As Sony Computer Entertainment America set
down the path for online gaming, it also committed to leading consumers online
by driving compelling content from its first party studios. With more than one
million units sold through to consumers, Sony Computer Entertainment America
delivered on this promise in spades with the success of SOCOM: U.S. Navy SEALs.
Not only did the first party title garner an overwhelming interest from gamers
at launch, but it has sustained that interest over time by appealing to
consumers’ desire to be part of an ever-changing gaming experience. Even a year
after its release, gamers are still averaging more than three hours of online
gameplay a day with the first party killer app for PlayStation 2.

The company also began the online journey
with a belief that third party publishers needed to be provided flexibility and
control in order to create compelling content. One year later, the results of
the open model approach include more than 20 publishers developing more than 50
titles for the PlayStation 2 platform by the year-end. In a widely publicized
support of the company’s open approach to third party software development,
Electronic Arts, the world’s largest videogame publisher, announced at E3 that
it will make its best-selling sports franchises PlayStation 2 online exclusives
for the 2003-2004 season including Madden NFL(TM) 2004, Tiger Woods PGA Tour(R)
2004, NBA Live 2004, and more.

Applying the Knowledge Learned Along the Way

Year one of online console gaming on
PlayStation 2 was about leading consumers online, but it was also about
listening to consumers, developers and partners along the way. Sony Computer
Entertainment America believes that the online console gaming community is a
dynamic universe that will continue to grow and evolve as consumer adoption
increases. As such, the company is preparing to introduce a series of technology
and content advancements to engage consumers within this community and build
customer loyalty now and for future PlayStation platforms.

According to an internal survey, PlayStation
2 gamers play online for the competition and camaraderie that a community
provides. To further engage mainstream consumers in the PlayStation 2 online
community, today Sony Computer Entertainment America launched a compelling, new
online environment — the 989 Sports(R) Lobby. The 989 Sports Lobby is the
ultimate hangout for sports fans providing a live streaming sports ticker with
sports scores from the MLB, NFL, NCAA Football, Basketball and NHL, voice chat
across varying games, and accessibility to the 989 Sports Lobby via personal
computer or PlayStation 2. In the lobby, avid sports fans will find the perfect
arena to showcase their sports trivia knowledge, compete against their peers and
stay at the top of their game with roster updates and live stats regarding their
favorite teams and players.

Adding a new level of realism and interactive
gameplay to the PlayStation 2 online community, Sony Computer Entertainment
America will launch a USB Headset (for PlayStation 2) this fall that utilizes
Voice Over Internet Protocol (VoIP) and voice recognition technologies for use
with online and offline first and third party games. The USB Headset will enable
users to engage online in real-time, where they can trash-talk with their
opponents in NBA ShootOut 2004 or strategize with teammates in SOCOM II: U.S.
Navy SEALs. Further differentiating itself from it competitors, Sony Computer
Entertainment America will also introduce titles that leverage voice recognition
technologies via the USB Headset, meeting consumers demand for an easy gaming
experience. Instead of fumbling through intricate plays, gamers can simply call
out plays via the USB Headset in NFL GameDay(TM) 2004 and NCAA(R) GameBreaker(R)
2004.

In addition to building community with the
989 Sports Lobby and USB Headset, Sony Computer Entertainment America also plans
to launch an internal hard drive (40 GB) in conjunction with Square Enix’s
highly anticipated massively multiplayer online role-playing game (MMORPG) FINAL
FANTASY(R)XI, which will allow cross-platform play between a console and
personal computer. The introduction of the internal hard drive enhances the
possibilities for larger online communities, complex gameplay in intense online
environments, and further demonstrates the company’s focus on extending the
functionalities and capabilities of the PlayStation 2 for a total living room
experience including games, movies and music.

Rounding out its commitment to enhancing the
online gaming experience, Sony Computer Entertainment America continues to
deliver a diverse online title library including the most in-demand genres
according to consumers — action/adventure, sports, racing and role-playing
games. As more and more consumers view online gameplay as a competitive
advantage, first and third party publishers will provide more than 50
online-enabled titles for consumers to choose from this holiday season.
Continuing to deliver on first party content, Sony Computer Entertainment
America will capitalize on the success of the online killer app, SOCOM, with the
launch SOCOM II: U.S. Navy SEALs this November. And for the sports fanatic,
between 989 Sports and EA Sports, consumers will have a bevy of online exclusive
content to choose from. The full PlayStation 2 fall online line-up will be
announced in the coming weeks.

About Sony Computer Entertainment America
Inc.

Sony Computer Entertainment America Inc.
continues to redefine the entertainment lifestyle with its PlayStation(R) and PS
one(TM) game console, and the PlayStation(R)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.