TIMES OF TECHNOLOGY

The US market may have to wait until next year for Sony's next-generation video game console PlayStation 3, according to a statement today.

The company today repeated that it planned for a spring launch in Japan and yearend launch for North American markets. But analysts believe the launch may be delayed as technology specifications are still undecided. The reason for the delay is believed to be some debate over the Blu-Ray DVD drive which is being billed as the next standard and will feature in the PS3.

Delay in finalizing the technology specifications may in turn, slow down the game developing process and consequently the launch. Currently game developers are working on guesses about what technology might be used in the final version of the PS3.

Besides the Blu-Ray, the device will have its core the much anticipated Cell chip that is built to deliver high quality graphics - “hyper-realism” and ultra-high speed responses in real time.

This chip jointly developed by IBM, Sony and Toshiba, could notch up the cost of the device, an important factor for the launch, analysts say. The Cell chip alone involves a manufacturing cost of $230 per unit, it is estimated. To this would be added another $350 for the Blu-Ray DVD drive and at least another $300 more for other components like memory, graphics, etc. The initial bill of materials would total to $900 per unit which, of course, would reduce to less than half over the next 3-4 years. At the current cost, the retail price may not seem attractive to gaming enthusiasts and consequently the product may see a lukewarm response as did Microsoft's Xbox 360 at its launch.

In order to minimize initial loss of revenue, the company could limit shipment at launch to between 2 million and 3 million.

Meanwhile, a statement last week by Tetsuhiko Yasuda the company's senior VP and MD for Asia region has foxed all market pundits. He said Sony might work with Microsoft to develop games that can be played on either consoles. The rival product Xbox has failed to move off the shelves as fast as was envisaged by the software giant's marketing team. Most people find it hard to believe that Sony could decide to work with a rival like Microsoft.

Analysts now predict that the PS3 would arrive not before autumn in Japan and possibly some time after December 2006 in the US. The delay could give Microsoft the much needed advantage to push its Xbox-360.

Sony's other rival Nintendo will bring its Revolution game console to the market in the coming months.