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.

You're subscribed! If you like, you can update your settings


Comments have been disabled for this post