PS3: Gone in 60 minutes

High-def DVD base explodes with Sony's console, Microsoft's Xbox 360 add-on

By Susanne Ault and Jennifer Netherby -- Video Business, 11/17/2006

NOV. 17 | The installed base of high-definition DVD players increased exponentially this week, as Sony’s Blu-ray Disc-enabled PlayStation 3 game console sold out within minutes of going on sale on Nov. 17, and Microsoft’s HD DVD add-on for the Xbox 360 also opened strongly.

Retailers believe the videogame hardware debuts, along with the launch of Microsoft’s Zune portable media player and Sony Pictures Home Entertainment’s theatrical blockbuster The Da Vinci Code on DVD, boosted traffic and sales across the board.

“Anytime you have lines outside the door, people will walk by wondering what’s going on,” Best Buy spokesman Brian Lucas said. “They want to see all the cool stuff coming out.”

Sony said it would ship 400,000 PS3 units at launch, and every one of the $499 and $599 models available at retail was snapped up today.

Local newspapers reported in-line pushing and shoving leading up to PS3’s debut.

At a Eugene, Ore., Circuit City, people in line were robbed, but no one was thought to be hurt, said Jim Babb, spokesman for the chain.

“It has been an exciting week. And for the most part, it was a smooth operation,” Babb said.

Each of the 100 PS3 units per store available at Circuit City’s six midnight openings sold out immediately. PS3 units available at the chain’s other outlets, where amounts varied between single digits and double digits, likewise moved fast.

To control crowds at Best Buy’s midnight PS3 openings, tickets were handed out a few hours early, so those people far back in line did not have to wait unnecessarily.

“There may be a random store here or there that takes longer,” but for the most part, all Best Buy stores were sold out of PS3s by 9 a.m. this morning, said Lucas.

PS3 players also were sold out at Amazon.com today, but used and new players through third-party retailers were selling for as much as $1,999 on the site. Amazon had an “Attention” note with its PS3 listing that said it would send e-mail notifications when more consoles were available.

On eBay, those lucky enough to get their hands on a player were selling them for $2,700 or more. One player was listed for $10,000, but eBay appeared to have canceled the listing.

The $199 Xbox 360 add-on also posted strong sales out of the gate Nov. 13 and gave an unexpected sales boost to the Xbox 360 console, Microsoft senior program manager Kevin Collins said, while doing press demonstrations of HD DVD from the HD DVD Promotional Group’s 18-wheeler parked on the Universal Studios backlot in Universal City, Calif., this week.

“It’s going right out,” he said, declining to speak of initial units shipped. Stores “are struggling to keep up with demand.”

“We never anticipated that scenario,” he said of the Xbox 360 console boost.

At this point, 1.5 million HD DVD titles have been shipped to retail, Collins said.

Electronics chain Tweeter was not expecting any PS3 units at launch, but the chain was still pleased about consumer attraction to the Zune portable media player.

“I definitely feel there is a lot of interest into what it’s about,” said Tweeter’s Meredith Zola. And with PS3 bowing, “I think there is a big curiosity factor overall in the market,” she said.

Sony eyed the PS3 hoopla as a great environment to street The Da Vinci Code on standard DVD. To further enhance its launch, the studio created 10 different, exclusive versions at retail, including unique editions at Target, Best Buy, Wal-Mart and Circuit City.

“We timed it for this week,” said Lexine Wong, Sony Pictures Home Entertainment senior executive VP of worldwide marketing. “People have been lined up for Best Buy for the past two nights. When they finally go in for midnight openings, they won’t only buy that but a lot of other things as well.”