Tokyo, March 30 (Bloomberg) -- Sony Computer Entertainment Inc., an affiliate of Sony Corp., said it will on April 1 begin recalling software used to play digital versatile disks in 1.25 million units of its PlayStation 2 video-game console.
Sony Computer is taking the action because some consoles can play digital versatile disk videos that are not supposed to be viewed in Japan.Customers will have to either mail the utility disk that contains the software to Sony Computer, or take it to Seven-Eleven convenience stores, the company said in a release. The company didn't provide a cost estimate for the recall.
"This won't affect Sony earnings, because the cost of the recall is probably insignificant," said Kimihide Takano, an analyst at Dresdner Kleinwort Benson (Asia) Ltd., who rates Sony Corp. shares "hold." The problem won't scare away potential PlayStation 2 buyers, he said.
Sony Computer will provide users with an updated version of the utility disk that improves the sound quality of the game console. The updated version is intended to provide incentive for users to cooperate with the recall, said a company spokeswoman, who asked not to be identified.
The company said it's installing updated utility disks in consoles produced since March 27.
Some PlayStation 2 users can bypass DVD copyright protection standards if they press certain buttons in sequence on the console while the DVD player is starting up.
That allows users to run DVD movies sold outside the DVD classification region that includes Japan. The regions were formed under an agreement with moviemakers concerned that movies could be copied from DVDs and sold throughout the world.
Sony Corp. president Nobuyuki Idei will meet the press at 3 p.m. local time today to discuss the company's vision for the year ending March 2001.
Sony shares rose as much as 1,150 yen, or 8.4 percent, to 14,880. The shares were traded at 14,410 by early afternoon, up 680.
DVD Zones
The DVD function bundled into the PlayStation 2 console is classified as a Region Two player under DVD zoning agreements. Region Two includes Asia and Europe. The U.S. belongs to Region One.
Sony Computer earlier this month said some PlayStation 2 owners may have trouble playing DVDs after using its memory card to record their game playing.
Sony, which is hoping that adding DVD home entertainment functions will broaden the machine's appeal beyond game addicts, is still investigating the memory card glitch.
Sony Computer has asked customers who have encountered the DVD malfunction to return the memory cards or consoles to the company. --Minoru Matsutani in the Tokyo newsroom (813) 3201-8981 /sm -0- (BN ) Mar/29/2000 23:08