Strategy Analytics: Sony's PS3 Delays Will Have Limited Long-term Impact; PS3 Will Gain 65 Percent Share Of Next Generation Console Market

March 17, 2006

Responding to today's announcement from Sony, delays to the Sony PS3 launch are likely to have limited impact on the console's long term performance, according to analysis from the Strategy Analytics Connected Home Devices service. While 2006 sales will clearly fall short of previous expectations, Strategy Analytics maintains its previous forecast of PS3 sales of 121.8 million units through 2012. This compares to expected sales of Microsoft's Xbox 360 of 58.8 million units over the same period. "The PS3 delay will give Microsoft more time to win early adopters, but this was generally anticipated," notes David Mercer, Principal Analyst at Strategy Analytics. "Any further delays could seriously damage Sony's position as a consumer technology leader. Assuming the November launch takes place as planned, we still believe that the PS3 will prove to be the dominant next generation console which will ultimately win a 65 percent share of the market." Cumulative Sales 2005-2012 - Millions Units ---------------------------------------------------------------------- Sony PS3 - 121.8 ---------------------------------------------------------------------- Microsoft Xbox 360 - 58.8 ---------------------------------------------------------------------- Nintendo Revolution - 17.9 ---------------------------------------------------------------------- Source: Strategy Analytics Connected Home Devices service About Strategy Analytics Strategy Analytics, Inc. - a global research and consulting firm - provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Boston, MA. and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics & Multimedia, Digital Consumer, Wireless Strategies and Enabling Technologies. For more information, see http://www.strategyanalytics.com.

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