PlayStation 3 could be delayed until 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.

Source: JoyStiq