Sony Announces PlayStation 2 Availability

Sony Computer Entertainment of America announced today via teleconference that just 500,000 PlayStation 2 consoles will be available for its US launch on October 26. Sony had originally promised that 1 million PlayStation 2 consoles would be available at launch. Sony now predicts that there will be a total of 1.3 million units shipped to retailers by the end of 2000, with 500,000 units shipping at the outset and shipments of 100,000 units following every week thereafter. Sony hopes to have 3 million PlayStation 2 units shipped by the end of 2001 and claimed that the PlayStation 2 production process is one month behind schedule.

"We currently control two-thirds of the market before the PlayStation 2 launch, so I don't think we have any formidable competition this holiday season," said Jack Trenton, senior vice president for Sony Computer Entertainment of America.

It was also announced that the PlayStation 2 will launch with 26 software titles on October 26 and another 24 titles will be available by Christmas, for a total of 50 available by the end of 2000. The PlayStation 2 and its software will be available at 20,000 retail outlets, and Sony has predicted retail revenue of US$500 million by year's end. There are currently 270 PlayStation 2 software titles under development by 301 development houses. Finished PlayStation 2 software has already been sent to Sony's disc production plants.

Sony claims that retailers were informed some time ago not to take preorders for the PlayStation 2 and recommends that retailers do not take any additional preorders in the future due to the modified launch schedule. "We actively discouraged people not to take preorders," claimed Trenton.

The announcement sent ripples throughout the interactive entertainment industry today as stocks fell sharply for several companies. Sony's stock dropped 9 percent while Electronic Arts' and THQ's stocks fell 11 percent and 14 percent respectively.