Print - PlayStation 3 Could be Delayed

Confirming rumors that have been making the rounds for the past several weeks, Sony this week admitted that it might have to delay release of its next-generation PlayStation 3 (PS3) video game console from second quarter 2006 to the end of the year. According to the company, the final specifications and availability of leading-edge PS3 components, such as its Blu-ray Disc optical drive and graphics circuitry, could force the delay.

"We're aiming for spring, but we haven't announced specific regions," a Sony spokesperson said yesterday, referring to the fact that the company will likely roll out the PS3 in Japan first, followed by North America three to six months later. "We're waiting for [component specifications to be ratified] until the last possible minute, but the launch could be pushed back if they're not decided soon."

Sony originally hoped to pit its PS3 against Microsoft's Xbox 360 by early 2006, but delays and technical problems have plagued the high-end machine. Merrill Lynch analysts reported last week that Sony could lose as much as $900 per PS3 if the machine goes on sale early this year. Over time, falling component prices should help Sony offset those losses, however, and the company has historically made up for hardware losses with software and accessory sales.

But even if Sony does make the desired 2006 release date, analysts are concerned that the PS3 will be too expensive to generate many sales. When Microsoft announced that a complete Xbox 360 system would retail for $400, many were surprised at the high price. The PS3, however, will likely cost much more.

PlayStation 3's high price and continual delays and the availability of the Xbox 360 could prove a boon for Microsoft, which today owns just 15 percent of the video game market, compared to 70 percent for Sony. Many believe that Microsoft will be able to grab another 20 percent of the market during Xbox 360's lifetime, which could come at Sony's expense. Meanwhile, analysts expect Nintendo, the third major player in this market, to retain its 15 percent slice with a new console dubbed the Revolution, also due for release this year.

It's pretty clear that Sony won't announce any delays regardless of how bad things are looking until the last possible second. Announcing a delay would just make more people jump on the 360 bandwagon instead being strung along waiting for the PS3 to appear.

Ermm, I think MICROSOFT make the Xbox360, direct competitor to the PS3. That makes it fairly relevent wouldn't you think.

I'm not sure how much accessories can offset that price. Software licenses sure, but at this point we're talking about $900 profit from licensing and accessory sales to make up. Their first few quarters after selling this thing are going to be ugly.

"LibertyandJustice" makes a good point. The header of this page says, "Windows IT Pro. Connecting the IT community." I can understand when Paul veers off into discussions about Linux and the Mac, but a full article on the PS3? I'm not sure why the "IT community" would care about the PS3, unless they're playing with one in their climage-controlled-air-conditioned server room rather than applying fixes on "MS Patch Tuesday".

I have an X-BOX, and PS\2 currently. If many feel like me, MS will not likely get that additional 20% of the market. X-BOX, which is supposed to be geared towards Adults make it difficult, because not many 2-player games exist. The ones that do require x-box live or additional consoles. It's because of this that I decided not to buy an X-360, but rather wait for Playstation 3 to come out. My wife, kids, and I enjoy our PS\2 over the X-Box. If MS wants to get that x-tra 20%, then they'll need to come out with more games like Halo, and D&D, champion of norrath. - Ken Wincel (happytech.net)

The more that Sony loses, the happier we'll all be. That'll teach them to mess with our computers with their DRM rubbish.

lotsamystuff why do you ignore alanm999's comment, when it perfectly answers Liberty's moan? This is just another example of your tunnel vision-inspired comments. You want *so badly* to agree with LibertyandJustice that you make yourself out to be utterly prejudiced. X360's success is tied to Media Centre, not to mention Microsoft's overall strategy in the living room. If you can't fathom a link between the PS3's impact on the 360's success and the IT community you're just another troll.