PlayStation 2 Arrives--but It's Going Fast

Believe it or not, you can buy a PlayStation 2 in the United States--if you're willing to pay as much as $1500. That was the highest bid Thursday on EBay, which is likely one of the only places you'll still find the new game console for sale.

Retailers opened their doors Thursday to face long lines of customers eager to get their hands on one of a limited supply of Sony's latest high-tech toy.

While most retailers sold out of the $300 console within minutes, auction sites like EBay still have them, but at a premium. One auction had reached $1525 at midday Thursday with two hours left to bid.

One reason for all the fuss is the PlayStation 2's appeal to a broad range of consumers. In addition to 128-bit gaming, the unit includes a hard drive expansion slot and a built-in DVD player. (See "First Look: Sony's PlayStation 2" and "Sony Set to Launch PlayStation 2.")

And besides the 26 new titles available for PlayStation 2 at launch, you can play existing PlayStation games on the new console. Of course, that's assuming you can get one.

Promises, Promises

Sony originally planned to ship 1 million units for the U.S. launch of PlayStation 2, says Stephanie Iwamasa, spokesperson for Sony Computer Entertainment. But component problems hampered that plan and the company shipped only 500,000 units. (See "PlayStation 2 Launch: Only Half the Fun.")

Although Sony wouldn't name specific components, common circuitry is the culprit, says Rob Enderle, a vice president at Giga Information Group. The technology is used in everything from mobile phones to personal digital assistants and PCs, and it's holding up PlayStation 2 production, Enderle says.

"The PlayStation 2 is like a complex computer," Enderle says. "It has subparts which need parts and many of these are shared with other intelligent devices; shortages occur because everyone wants the parts at once."

Sony hasn't intentionally limited supply, agrees Schelley Olhava, an IDC senior analyst. But she suspects components shortages aren't the real problem.

"My feeling is that they just couldn't get the units out," Olhava says. "They're very custom units with a lot to them. Sony is bringing on new plants in Japan to try and meet demand."

Empty Shelves

Meanwhile, word got out that supplies would be short at launch, and eager consumers camped outside electronics stores to nab one of the first units.

National retail chain Best Buy tracked five of its 400 stores--in Boston; Richmond, Virginia; Minneapolis; and Orlando and Fort Meyers, Florida. Each site averaged 50 to 100 people camped out overnight, some arriving as early as 6 p.m. Wednesday. When the stores opened at 10 a.m. Thursday, some crowds had swollen to 300 people.

Best Buy issued customers tickets as they took places in line. System sales were limited to one per person, with no rain checks. The process "went very smoothly" with no major problems, says Donna Beadle, company spokesperson.

By midday, Best Buy's PlayStation 2 supply was depleted, she says. "We tried to be fair," she says. "But some people were turned away."

Best Buy expects to receive regular shipments of PlayStation 2 through the holiday season. Beadle advises buyers to keep checking with local Best Buy stores.

Sony plans to ship 100,000 units per week to retailers through the holidays, Iwamasa says. By two months after the launch, some 1.3 million units will have entered the North American market, according to the company.

But patience may result in better prices, suggests everyone from analysts to retailers.

"Right now, people are paying a premium for these," Enderle says.