To: Don Green who wrote (37782 ) 3/3/2000 11:31:00 PM From: Don Green Respond to of 93625
Playstation 2 to hit Japanese stores on March 4 The long-awaited Playstation 2 by Sony will hit Japanese stores on March 4. The new game console is already such a blockbuster, judging by the flood of advance orders, that it is expected to single-handedly help stimulate Japanese industry. But analysts see some dangers lurking ahead for the runaway success. At 128 bit, Playstation 2 is the fastest machine of its kind. And it comes with both an audio CD and a DVD player. Its 300 megahertz CPU was developed by Sony Computer Entertainment, together with Toshiba. Kenichi Fukunaga, Director, Corporate Communication, Sony Computer Entertainment, said: "Compared to the first Playstation, its graphic speed differs by 2 digits, which means it's 100 times faster. "Look at the glare. The graphics are realistic. No wonder analysts praise Playstation 2." Mr Fukunaga boasts that the graphics, developed by Sony Computer Entertainment, were "suave", unlike conventional computer games. But analysts noted some problems ahead. Masahiro Ono, senior analyst, Warburg Dillon Read, said: "First of all, price strategy, because compared to any other game machine, Sony's production cost is most expensive, due to higher production cost of semiconductors. "Second thing is, strategy of software development, including relationship of third parties. In order to make money, Sony has to release lots of software titles for Playstation 2." Over 200 software firms in Japan and abroad have been licensed to develop softwares for the new machine, but Warburg's Mr Ono claims the games are no different from earlier ones. However, the market has shrugged off these concerns, so much so that on February 18th when Sony started taking advance orders for the new game consol, Sony's share price surged 10% and is holding up above the 30,000 yen level. That, analysts say, is much higher than its fair value of 20,000 yen. But Sony is betting on the internet to drive sales further. Mr Fukunaga said: "In the US, e-commerce is already a huge market. It'll catch on soon in Japan. But before that, we decided to experiment with Playstation 2." Through Playstation.com, the game console can be purchased together with its software. For the moment, it will be delivered to the customer's doorstep, but within a couple of months, it can be picked up at anytime at Seven Eleven stores throughout Japan. Sony projects that 1.7 million units of Playstation2 will be sold within this month. And, it is expected to exceed eventually the worldwide sale of 7 million units of its predecessor.