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June 12, 2000

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Sony to launch Playstation in India next year

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Buoyed by 'overwhelming' response to test-marketing of Playstation-I, Sony India Limited has decided to launch the video game in India next fiscal.

Playstation-1 will most likely be priced around Rs 10,000 and targetted at upper middle class, SIL general manager (marketing) T Itagaki said.

When asked that the proposed price is much higher than $ 100 to $ 150 that the entertainment console costs in the United States, Itagaki attributed it to high duty structure in the country.

Sony India sold 100 pieces of Playstation-1 in test-marketing through their exclusive showrooms across the country during 1999-2000, Itagaki said.

"Enthused by the outcome of test-marketing, we have decided to launch the game during 2001-2002." However, he did not disclose the specific date of the launch, stating that the company is yet to take that decision.

Playstation-1 is a video game and entertainment console that enables users to create their virtual discotheque at home.

The parent company Sony Corporation has already launched Playstation-2, an advanced version of the video game and entertainment console, in Japan in March. It sold around 1.4 million units in Japan in the first week. To date it has sold over 1.8 million units in Japan since its debut.

Playstation-2 has certain advantages over Playstation-1 including DVD application.

The company has stated that it will launch Playstation-2 in both North America and Europe on October 6 at $ 299.

When asked why is SIL is launching Playstation-1 in India and not the advanced version and that too next fiscal, said the company will watch the performance of Playstation-1 and then decide on the other product. He stated that as the company has to look after many aspects of the launch including after sales services which takes some time, the product will be launched next fiscal.

Overseas, SIL faces competition in Playstation from Sega and Nintendo. However, the two companies have not launched these products in India so far.

Sony India's major contribution is from colour televisions and audio products. Colour televisions remain a front runner for SIL, but the company is also looking at introducing new categories and hence the company has decided to go for Playstation-1, Itagaki said.

The company is looking at introducing new categories like Vaio PC and increasing cellular phone line-up. "However, at this point in time, it is difficult for us to divulge the exact details of the launch. Our effort is to bring them as early as possible. Regarding the software, we would like to keep in mind Indian taste and sensitivity," he added.

SIL's turnover in 1999-2000 is provisionally estimated at Rs 6.10 billion. It has set a target to increase the turnover to Rs 7.20 billion this fiscal.

Sony India, a 100 per cent subsidiary of electronics giant Sony Corporation of Japan, manufactures colour televisions, audio systems and car audio systems in its factory at Dharuhera in Haryana.

The other product range includes digital handycam, digital still cameras, handycams, cordless telephones, cellular phones, colour monitors (for desktop PC), floppy diskettes, professional tapes and alkaline batteries.

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