PlayStation 2

The PlayStation 2 (PS2) (Japanese: プレイステーション2) is Sony's second video game console, after the PlayStation. Its development was announced in April 1999, and it was first released in Japan on March 4, 2000. The U.S. version was released on October 26, 2000. Following a slow first year due to a lack of units built and ready, the PlayStation 2 has grown to become a popular gaming console, with over 90 million units sold.

History

There were a few problems around the launch of the system. Only a few million users had obtained consoles by the end of 2000 due to hardware shortages. Developers also complained about the system being difficult to develop for, with little in the way of reference material from Sony for its exotic architecture. Although the PS2 launch seemed unimpressive and gaffe-prone, compared to well-planned launch of the Sega Dreamcast which was making a genuine attempt to woo developers and which had better launch titles, the PS2 initially sold well solely on the basis of the strength of the PlayStation brand and its backwards compatibility, allowing the PS2 to tap the large installed base established by the PlayStation. Another major selling point over the Dreamcast was the PlayStation 2's ability to play DVDs and this gained the PS2 a presence in electronics stores that formerly didn't sell video game consoles. Later Sony gained steam with new development kits for game developers and more PlayStations for consumers.

Related Topics:
2000 - Sega Dreamcast - PlayStation - DVD

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Many experts predicted a close 3-way matchup between the PS2 and its soon-to-be-released competitors Microsoft Xbox and Nintendo GameCube, noting that the PS2's graphics were inferior but it had the advantage of a head start (Xbox's strength was in its hardware, GameCube was the cheapest of the 3 consoles). However, the release of several blockbuster games during the 2001 holiday season pushed the PS2 far in front even as the Xbox and GameCube made their impressive debuts. Not since the days of the NES has a console dominated the market to the extent that PS2 has.

Related Topics:
Xbox - Nintendo GameCube - NES

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Despite the PS2's dominance, the advent of the Xbox and GameCube has hurt Sony's profits due to all 3 rivals lowering their console prices (already below break-even point) in a price war, and because Sony Computer Entertainment is the subsidiary that accounts for over half of Sony's profits.

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Sony's - Sony Computer Entertainment

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Hardware sales remained strong until 2004 saw the console apparently approaching saturation point. In September of that year, in time for the launch of ' (the highest selling game during the 2004 Holiday season), Sony revealed a new, smaller PS2 (see Hardware revisions).

Related Topics:
2004 - Hardware revisions

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Sony had stopped making the older PS2 model (SCPH-5000x) sometime during the summer of 2004 to let the distribution channel empty out stock of the units. After an apparent manufacturing issue caused some initial slowdown in producing the new unit, Sony reportedly underestimated demand, caused in part by shortages between the time the old units were cleared out and the new units were ready. This led to further shortages, and the issue was compounded in Britain when a Russian oil tanker became stuck in the Suez Canal, blocking a ship from China carrying PS2s bound for the UK. During one week in November, sales in the entire country of Britain totalled 6,000 units - compared to 70,000 a few weeks prior. http://entertainment.timesonline.co.uk/article/0,,14935-1396182,00.html Shortages in the US were also extremely severe; one retail chain in the U.S., GameStop, had just 186 PS2 and Xbox units on hand across more than 1700 stores on the day before Christmas. http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=GME&script=1010&item_id=997399

Related Topics:
2004 - Suez Canal - GameStop

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