January 2007 was a record month for the PlayStation business with $550M in revenue for North America, this includes hardware and software for PS3, PS2 and PSP, as well as first and third party titles and peripherals. Although we still saw supply constraints at retail for PS3, we did sell a strong 243,554 according to NPD data. Tie ratios for PS3 have improved by 80% since launch and should continue to climb with the release of the much-anticipated MotorStorm from SCEA and Virtua Fighter 5 from Sega. PSP had a very good January, with hardware sales up 20% year over year, selling 210,719. PSP is closing the gap on the leading competitor, off just over 10% in total sales for the month. PSP software sales should see a boost as well this month, with the release of the critically-acclaimed Ratchet & Clank: Size Matters. PS2 hardware sales stood at 299,352 with an impressive increase in software sales year over year of 20%. One of the biggest games for the PS2 will be released this March in the blockbuster God of War 2. On the marketing front, with supply levels stabilizing, February will see the first appearance of PS3 in weekly retailer advertisements. BestBuy featured its first ad for the system on February 18. Target is slated to feature PS3 in its February 25th ad. "We are pleased with the numbers from January as they demonstrate overall sales improvements for our legacy systems year over year and continued momentum for PS3. With supply levels stabilizing, you can expect to see increased marketing for PS3 and PS2 in weekly retail circulars, which should garner strong numbers, boosted by big software launches, such as MotorStormand Virtua Fighter 5. PSP sales in January were exceptionally strong with the system quickly closing the gap on the leading competitor. All of this led the PlayStation brand to the biggest January sales in the history of the company in North America."