Digital Journal — Poor SonyPlaystation 3. The upcoming video-game console is not getting any love in light of recent headlines about its high cost ($600 US) and head-scratching delays.
But don’t shed too many tears. Sony is digging its own grave with a recent announcement that it plans to cut its target shipment this year by half. And if you live in Europe or Australia, don’t expect to see a PS3 on shelves until March 2007, five months after the North American and Japanese launch.
Ken Kutaragi, the head of Sony’s game unit and lovingly dubbed the “father of the PlayStation,” told Reuters Sony would ship two million PS3 units this year, half a previously forecast four million, but would make up the lost ground to hit a target of six million consoles shipped by March.
A shipping delay in Europe and other countries stems from the same problem crippling the target shipments. There’s a problem in mass producing a key component in the Blu-ray disc player part of the console, Kutaragi said. Mass production of the console is set to begin later his month.
The repercussions of these disappointing announcements will undoubtedly hurt PS3’s chances in winning the next-gen console war. Delaying the PS3 past the Christmas season in Europe will frustrate gamers and investors, while forcing Sony to shelve its Christmas TV advertising campaign in the U.K. Also, Sony’s bottom line is taking a beating with this succession of bad news — financial analysts Goldman Sachs predicts Sony will lose nearly $2 billion US on the PS3 by the end of this fiscal year in March.
There’s a lot at stake in the $30 billion US video-game industry, and Sony has always been a market leader. Now, it is facing hurdles it needs to overcome before Nintendo and Microsoft reach the top position. Forget the easy ride PlayStation once enjoyed; now, Sony is scrambling to save face and maintain its street cred.
