Sony Computer Entertainment America Announces New Dimensions of PlayStation® at Annual Gaming Convention

Sony Computer Entertainment America Inc. announced today details from the presentation given this morning by Kaz Hirai, president and chief executive officer, Sony Computer Entertainment America Inc., at the 2004 Electronic Entertainment Expo (E3) in Los Angeles. The presentation highlighted the announcements being made by the company and focused in particular on new dimensions of the PlayStation® business. Hirai provided a glimpse into the past and future evolution of the business while also providing details about the company's long-term online gaming plans and the newest member of the PlayStation family of products, PlayStation®Portable (PSP™).

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"It's hard to believe 10 years have gone by since the first E3; our history as a company parallels the first show in 1995, as it was there that the original PlayStation debuted," Hirai said. "Since then, Sony Computer Entertainment America has led the industry in all aspects of interactive entertainment, and our continued innovation -- evolving our business through new dimensions -- will drive this industry forward for many years to come."

Hirai discussed the importance of sustaining platforms lifecycles, showing how the 10-year plan for PlayStation has forever altered expectations for platform longevity, and outlining the company's plans to make that lifecycle a reality for the PlayStation®2 computer entertainment system. The company's smart platform management has furthered the financial health and stability of the interactive entertainment business. In fact, the PlayStation 2 adoption rate in just its third year is already 38 percent ahead of the original PlayStation for the same time period. Additionally, the company anticipates more than 60 percent of PlayStation 2 software sales are still to come, which provides a healthy outlook for all its business partners.

The company's successful creation of the casual gamer market -- while still cultivating the core user base -- will additionally fuel the success of the company's 10-year plan as it delivers innovation to match consumer trends and expand the audience base, Hirai said. The new PlayStation 2 price of just $149 along with the bevy of new content also announced at E3 will entice new and existing consumers. Additionally, the company's continuing focus on investing in future technologies and new franchise development has been and will be critical to success.

Sony Computer Entertainment America is also extending its reach online, games without boundaries. Online gaming, Hirai said, is the new reality TV; both genres are top draws for the 18-34 year-old demographic and both provide what today's consumers seek, in particular competition, camaraderie and unscripted experiences where participants control their own destinies and ultimately, the outcome. In both genres, persistent worlds continue even when the camera or action stops, success is sometimes based on alliances with other players, participants' true personas come front and center, and the end result is based on the defeat of the enemy.

The company also outlined plans for a business model for online gaming with a focus on a mini-transactions system that gives consumers the right to decide what they want to pay for and how much they want to spend -- a model similar to that which has proven profitable for online music distribution.

At E3, the company also announced and showcased its new lineup of online titles, including Ratchet and Clank®: Up Your Arsenal; the new titles bring the number of online offerings available for PlayStation 2 by the end of the year to 100, continuing to build on the company's leadership in its vast library of software offerings.

Further enhancing the company's strong platform strategies, Hirai said, is Sony Computer Entertainment's official worldwide debut of its new handheld videogame system, scheduled to launch in Japan at the end of 2004 with North American and European launches following in the spring of 2005. PSP features 3-D CG games incorporating high-quality, full-motion video giving consumers an experience similar to PlayStation 2 -- anytime, anywhere.

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.

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

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SOURCE: Sony Computer Entertainment America Inc.

CONTACT: Monica Wik, +1-650-655-5394, or
monica_wik@playstation.sony.com, or Teresa Weaver, +1-650-655-5324, or
teresa_weaver@playstation.sony.com, both of Sony Computer Entertainment
America Inc.

Web site: http://www.playstation.com/