Possible long wait for PS3...

[FearNo1]

http://www.bloomberg.com/apps/news?p...Oiw&refer=asia
Sony Shares Fall on Report of PlayStation 3 Delay
(Update3)

Feb. 20 (Bloomberg) -- Shares of Sony Corp., the
world's second-biggest consumer electronics maker,
headed for their biggest two-day decline in 10 months
after Merrill Lynch & Co. said the PlayStation 3 video
game console may be delayed until early next year in
the U.S.

Sony's shares fell 4 percent to 5,280 yen, following a
2.8 percent drop on Feb. 17, on the Tokyo Stock
Exchange. Sony spokesman Kei Sakaguchi said ``there is
no change in our original plan,'' and that the company
intends to release the PS3 in ``spring'' this year.

Any delay would give rivals Microsoft Corp. and
Nintendo Co. more time to win market share with their
new consoles, especially if Sony's introduction is
postponed after the Christmas shopping holidays.
Microsoft's Xbox 360 went on sale in November last
year and the successor to Nintendo's GameCube is due
out this year. Sony may start selling the PlayStation
3 in Japan in autumn and by late 2006 or early 2007 in
the U.S., Merrill Lynch's Joe Osha said in a report
dated Feb. 17.

``Given the increasing competition from Microsoft and
Nintendo, Sony can't afford any delays that may help
its rivals get ahead,'' said Taiji Yoshida, who helps
oversee $6.7 billion at Yasuda Asset Management Co. in
Tokyo.

The PlayStation 3 may cost Sony $900 to build at the
time of release and drop to $320 in three years,
according to Osha's report. Microsoft loses about $153
on each Xbox 360, which retails for between $299 and
$399, researcher iSuppli Corp. said.

Sony doesn't comment on the machine's price, Sakaguchi
said.

Cell Chip

Nintendo's Revolution console may sell for less than
$300 and will go on sale before Thanksgiving in
November, Reggie Fils- Aime, executive vice president
marketing for Nintendo America, told Cnet News.com
last month.

The PlayStation 3 will be able to play Blu-ray high-
definition DVDs and includes the ``Cell'' chip
developed by Sony, International Business Machines
Corp. and Toshiba Corp. The Cell allows more lifelike
or intricate game graphics by using multiple central
processors to speed operations.

Merrill Lynch's Tokyo-based analyst Hitoshi Kuriyama
on Feb. 17 downgraded Sony's stock to "sell'' from
"neutral.''


TOKYO, Feb 20 (Reuters) - www.PS3Gaming.com - Sony
Corp.'s (6758.T: Quote, Profile, Research) game
division said on Monday it still aimed to launch its
next-generation PlayStation 3 (PS3) video game console
this spring, but the timing could be pushed back if it
is unable to finalise the technology specifications.

"We're aiming for spring, but we haven't announced
specific regions," a spokeswoman for Sony Computer
Entertainment said, adding that some of the detailed
specifications of the PlayStation 3 have not yet been
finalised, such as those related to the Blu-ray drive
and the input and output of video and sound.

"We're waiting for them until the last possible
minute, but the launch could be pushed back if they're
not decided soon," she said.

The company's shares fell as much as 4.4 percent on
Monday after Merrill Lynch said in a research note
that the launch of the PS3 might be delayed by six to
12 months and the costs for materials could approach
$900 per unit.

Shares of Sony ended the morning session down 2.2
percent at 5,380 yen ($45.50), underperforming the
Tokyo stock market's electrical machinery index, which
was down 0.6 percent.

The launch of PS3 has been the subject of heavy
speculation in the industry. The console will be
competing with Microsoft Corp.'s (MSFT.O: Quote,
Profile, Research) Xbox 360, which went on sale last
November, and Nintendo Co. Ltd.'s (7974.OS: Quote,
Profile, Research) Revolution, which is expected to
come out later this year.

If the PS3 is not ready in time, the Sony spokeswoman
added, the company will choose the next best timing
for the launch.

Merrill Lynch last week downgraded its rating on Sony
to "sell" from "neutral", saying in a research note
that Sony could see its earnings decline in the
business year from April.

"If the launch is delayed, it will be beneficial in
the short term, but will be negative from the
standpoint of share price," said analyst Hitoshi
Kuriyama in the note. "If it is on time, the PS3 will
weigh on the company's profitability."

Most analysts currently expect Sony to launch the PS3
in summer in Japan, followed by a U.S. launch before
Thanksgiving. They expect a launch in Europe in early
2007.

"Everyone knows that the launch schedule will probably
be delayed," said Takeshi Tajima, an analyst at BNP
Paribas, adding that game development has also been
delayed because many of the specifications have not
been finalised.

Source: Reuters


http://www.joystiq.com/2006/02/18/p...ntil-next-year/
The North American launch of the Playstation 3 could
slip to 2007 if the Merrill Lynch report we blogged
about earlier is to be believed. The report states
that as a result of Sony's design choices the PS3 is
an "expensive and difficult to manufacture product"
which could have the consequence of delaying the
launch until next year. The components that seem to be
causing the most trouble are the Cell processor and
the Blu-Ray drive.

The Cell processor is a very complex chip which means
it'll be a difficult and expensive part to
manufacture. Processors are often a reason for delays
in the computer industry (3GHz G5 PowerMac anyone?) so
it's possible the Cell could be a factor in any
potential slippages for the PS3. The second problem is
Blu-Ray. The standard is so new that no-one is making
the drives, resulting in another expensive component.
The inference is that Sony might delay the PS3 until
Blu-Ray is a more established format in order to
reduce their losses.

What we've got here is a waiting game. The longer Sony
waits to launch the PS3, the less money it'll lose on
its consoles. However, as long as the PS3 remains off
the market Sony runs the risk of losing out to its
competitors.


http://gametrailers.com/viewnews.php?id=2949
Summary: Sony to ship PlayStation 3 when ready --
claims piracy concerns Full: According to Mainichi
Daily News, Sony might not be set on launching the
PlayStation 3 by this spring.

At the Taipei Game Show, the managing director of SCE
Asia, Tetsuhiko Yasuda, stated that Sony will launch
the PS3 when it is 100% ready. Yasuda cited piracy as
Sony's number one reason for a possible push-back.

Says Yasuda, "Our No. 1 competition is not other
companies but counterfeiters. We want to work with
governments to stop this."

Console piracy is a growing problem in Asia, and Sony
says that the extra development time will help to
develop more sophisticated anti piracy measures for
the PS3.