The Nikkei Shimbun reported earlier today that Sony (SNE) would postpone the release of its much anticipated PlayStation 3 game console until November due to delays in development of copy protection for Blu-ray Disc (BD) technology. This report was at least partially confirmed later in the day in Tokyo when Sony Computer Entertainment (SCEI) announced it in fact was delaying the launch of the PS3 until early November, when it will be launched simultaneously in Japan, North America, and Europe.
The PS3 was originally due to hit store shelves this Spring. Sony held a meeting following the market close in Tokyo and said falling behind schedule in development of BD and High-Definition Multimedia Interface (HDMI) is the reason for the delay. The electronic announcement (see hyperlink above) only comments on PS3's technology and capabilities.
Microsoft (MSFT) has to be pretty happy about Sony's delay, since by the time the PS3 is launched the Xbox 360 will have been on the market for almost a full year. However, I wonder if the timing of the PS3's debut around the winter holiday season will hurt Xbox 360 sales and boost already pent-up interest in PS3.
At the meeting Sony Group's SCEI president said initial production capacity will be 1 million per month with an expected increase to 6 million per month by next March. The ramp-up is seen outpacing earlier PS2 production levels.
Sony ordinary shares (Tokyo: 6758) closed 1.80% lower today at 5,470 yen. Sony ADRs were trading down as much as 1.96% in the pre-market but they are now unchanged about 40 minutes before official trading begins. FISCO news service in Japan reported Goldman Sachs (GS) doesn't believe a November delay would have much of a negative effect on Sony's PS3 sales, while Nomura (NMR) said that if the delay is in fact over something like a core chip or system software, then this could become a serious issue.
SNE 1-yr chart:
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