Japan Eases Export Limits On Sony PlayStation2

19-Apr-00

Japan's Trade Ministry has simplified export procedures for Sony's flagship PlayStation2 video game device after earlier imposing controls amid concerns that parts could be used for military purposes. ""It is, after all, a general-purpose product, and we have simplified the procedures,"" Minister Of Trade And Industry Takashi Fukaya was quoted by the Kyodo news agency. The most profitable product from Sony Computer Entertainment, a subsidiary of electronics giant Sony, faced export restrictions because the machine and its 8MB memory card were so sophisticated they could be used in missile guidance systems. The machine, which includes a DVD-Video player and which eventually will offer Internet access, is key to Sony's profit outlook. The company said it had shipped 1.4 million in the month after the gaming machine's March 4 launch. Sony Computer Entertainment has said it aimed to ship 4 million PlayStation2 consoles in Japan and 3 million each in Europe and the United States in 2000 and 2001. European and US shipments are due to start later this year. The first version of the PlayStation generated approximately 40 percent of Sony's group-based operating profits. Sony played down the risk to its business from the export controls and said it could not compromise its technology just to escape a government control when it needed to stay ahead in a highly competitive market. Analysts said the restriction had been unlikely to affect Sony's planned exports of the hugely popular game console to Europe and the United States, given the strong demand. The company had already received permission from the trade ministry to export to the United States and Europe, officials said. Company officials said the restrictions amounted to little more than some additional paperwork. Sony is facing tough global competition, with US software giant Microsoft due to enter the lucrative video game market later next year with its own high-performance console, tentatively called the ``X-Box.'' Source: Reuters and CNET News.com

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