Sony May Delay PlayStation 3
Debut may be postponed past Spring if specs aren’t finalized.
February 20, 2006
Sony may postpone the debut of its PlayStation 3 console past the planned spring launch time frame, according to reports Monday.
The Japanese entertainment giant is waiting for industry specifications to be finalized for the PS3 video game console, according to Reuters. The Tokyo-based company wants the completed specs for the Blu-ray high-definition DVD drive as well as for input/output video and sound.
Because the specs need to be approved by industry consortiums, Sony needs to wait until those are completed, although the company is already a driving force in setting Blu-ray standards (see Microsoft, Sony Join DVD Fray).
The PS3 will be one of the first devices to include Blu-ray technology, if it gets out of the gate on time. Sony’s backing of Blu-ray is at odds with Toshiba’s support for the rival high-definition DVD format, HD-DVD (see Hi-Def DVD Formats Duel at CES).
Sony has been vague about the exact timing of its PlayStation 3 launch, which could happen anytime between April and June to fit into the spring time frame. The company also has not set an exact release schedule for which parts of the world will receive shipments of the PS3 at which times.
That’s in contrast to Microsoft, which set launch periods and regions for its Xbox 360 game console last year and has had trouble meeting demand since the unit went on sale (see Xbox 360 Winter Release Set and Xbox Shortage Dogs Microsoft).
Up to a Year’s Wait
Merrill Lynch speculated in a research note last week that the debut of the PS3 could be postponed as much as six to 12 months, with an autumn launch in Japan and a late 2006 or early 2007 launch in the United States, and that the cost to manufacture the game console might be as high as $900 apiece.
Analysts Hitoshi Kurayama, Joe Osha, and others at Merrill believe the Blu-ray drive and the Sony Cell processor will drive up the initial production costs of the console, although they believe it will drop to about $320 three years from the launch date.
“We wrote last November that Sony’s design choices for the PS3 had resulted in an expensive and difficult-to-manufacture product, and we think that we’re seeing the consequences of those choices play out now,” they said.
They also believe the impact would be felt in the gaming software industry, resulting in lower industry revenues and the extension of the gaming cycle for another year.
With Microsoft selling its Xbox 360 console for about $400 apiece, Sony will likely be forced to heavily subsidize the production costs of its PS3 console so as not to lose too much market share to Microsoft once the PS3 is ready.
In the interim, Microsoft will be able to benefit from the PS3 delay, as long as it can solve its own Xbox 360 supply problems.
Sony did not immediately respond to a request for comment.
I'll believe a date when I see PS3 hold a news conference... until then a project like this will err on the side of longer rather than shorter.
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