No Playstation 3 Until 2007?

According to Gamespot, in an analyst’s memo written after Electronic Arts earning call was a small piece of information: according to Wedbush Morgan Securities Sony may delay the release of the Playstation 3 until 2007.

The console is plated to hit Japan before the end of the companies fiscal year March 31, 2006; but, given the right set of conditions, the public might not see the Playstation 3 until 2007 or later.

Wedbush senior analyst Michael Pachter painted the following scene for a delayed Playstation 3 launch:

The current generation Xbox gets priced down to $99 post-360 launch.
To match, Sony lowers the price of the Playstaion 2 to $99.

This would be a diversion, according to Pachter: “We believe that the company will attempt to disrupt the Xbox 360 launch with a price cut, and as a result may succeed in diverting attention away from the higher-priced next-generation console.”

According to Pachter, a redesigned Playstation 2 costs elss than $99 to make, so Sony would still profit, while Microsoft would continue to lose money on a $99 Xbox. So, by creating a diversion tactic, Sony finds itself in a win-win situation.

He also belives that Sony does not want to disappoint consumers and retailers by not having enough supply to meet demand. “We believe that Sony suffered the ignominy of being unable to satisfy holiday ['04] demand in order to increase its gross profits over the short term.” So, if the Playstation 3 launches in late 2006, they could fae the same scenario for a second straight year. Pachters theory is that if there are no products to be supplies, there cannot be a letdown in consumer expectations.

“Should Microsoft fail to garner sufficient software support to gain an insurmountable lead, we think that there is a possibility that the PS3 launch will slip into early 2007.”

To narrow all of that down: if the Xbox 360 tanks, Sony could delay the Playstation 3 until 2007 so it can squeeze every last cent out of the Playstation 2, then make sure it can supply the demand for the console come the holiday season.

Provided by Geekstreak

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