JULY 24, 2007 • SCEA announces that according to preliminary internal data, PS3 sales have increased by more than 135% with Sony’s top five direct retailer clients in the two weeks following the $100 price reduction to $499.

Impact: DFC has always felt strongly that price is a key driver for video game sales. We still think that further price cuts will be needed for Sony to drive the sales volume it is accustomed to with its game systems.