NPDFUNWORLD^SM REPORTS POSITIVE IMPACT OF NEW GAMING CONSOLE SYSTEMS ADDS TO AN ALREADY PROFITABLE VIDEO GAME INDUSTRY

PORT WASHINGTON, NEW YORK, December 19, 2001 - According to leading market information provider, NPDFunworld^SM, the total U.S. video game industry, consisting of video game hardware, software and accessories, generated $6.4 billion in revenue year-to-date 2001 (January to November), compared to $4.7 billion during the same time last year. While the entire industry experienced substantial growth, the next generation console category (Dreamcast, GameCube, PlayStation 2 and Xbox) took in the largest amount of revenue, showing an increase of 436 percent in dollar sales versus last year.

A 624 percent increase was experienced in November 2001 compared to November 2000. Almost 2.6 million next generation consoles were purchased last month, due in part to the launches of two new gaming consoles, Microsoft Xbox^TM. "This substantial growth over the past 11 months, especially in November, was just what the industry needed," said Ilene Haase, director of video games, NPDFunworld. "Microsoft’s Xbox and Nintendo’s GameCube launches were both instrumental as consumer anticipation climaxed in November," said Haase.

Haase added, "Sony’s PlayStation 2 has been the primary driver for the majority of the year on the console side of the business. Add the launch of Nintendo’s Game Boy Advance this past June, and subsequent video game sales since then, and the end result is all video game categories experienced growth in 2001. Beyond the initial rush to buy the new hardware, the major driving force will be the games. Games that offer new content, new licenses, new genres and realistic game play are what will move the hardware off the shelves for years to follow."

Software sales skyrocketed at a dollar growth rate of 28 percent in the month of November, compared to last year, according to NPDFunworld. November launch titles, such as Halo from Microsoft and Luigi’s Mansion from Nintendo, drew in almost four percent of the console software unit sales. Both of these two best-selling games sold through at a rate of at least one game to every two consoles purchased. Microsoft’s launch portfolio of seven Xbox games represented 55 percent of the Xbox software unit sales and Nintendo’s initial release of two first-party GameCube games represented 41 percent of GameCube software unit sales.