PlayStation 3: Delays Ahead

Microsoft folks must be grinning ear to ear. Despite some flubs, the XBox 360 is going to stay in cat bird seat for a long long time. Analysts over at Merrill Lynch are predicting delays for PlayStation 3 gaming console. The impact of this could be felt through the entire food chain – impacting graphics chip makers to software companies to even retail outlets. In other words, there should be a whole slew of fiscal resets coming.

Merrill’s Japan-based analyst Hitoshi Kuriyama yesterday said that there will be a six-to-12 month delay in the device which could result in a Japanese launch in Autumn. The US launch could spill over into early 2007, thereby missing the entire 2006 Christmas season.

Sony, it seems might have over shot in setting a technology bar, making the device quite expensive, and difficult to make. Merrill estimates that PS3 will cost about $900 to make and it will take about three years to fall to $320. Blame it on the Sony Cell processor and a Blu-Ray drives. Oh this is not looking good at least for companies like NVIDIA which is supplying PS3. ATI sells to XBox 360.


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