Sony 2001 Annual Report Download - page 32

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Sony Corporation Annual Report 2001
30
BUSINESS REVIEW: GAME
MESSAGE FROM TOP MANAGEMENT
In 2000, Sony Computer Entertainment (SCE) launched the PlayStation 2 (PS2) computer entertainment system
in Japan, North America, and Europe. After one year from the launch, PS2 worldwide shipments have reached
more than 10 million units. Production shipments of PS2 software titles have been strongly supported in each
territory. PlayStation (PS) is now in its seventh year and is offered in about 100 countries and territories. During
the year under review, as cumulative shipments continued to grow, particularly in North America and Europe, PS
continued to solidify its position as the world’s favorite game console for the home.
SCE reported a substantial operating loss for the year. This was due to start-up costs for the PS2
business and additional costs associated with delays in ramping up production of the semiconductors for
PS2 as well as to a decline in overall software sales. However, by spring 2001, monthly PS2 production
had increased to about 1.5 million units to meet strong demand in Japan and other countries. Looking
ahead, SCE is working to further expand PS2 production and is seeking to aggressively cut costs by
reducing the number of parts in both PS and PS2 as well as by other efforts. SCE will also flexibly review
the production locations.
Through the penetration of PS and PS2 platforms, SCE intends to create new forms of computer entertain-
ment. SCE also intends to form global strategic alliances in such areas as networks and semiconductors. Through
these actions, SCE is working to strengthen its network business in the broadband era.
The PlayStation 2 computer entertainment
system