Sony has delayed the European launch of its PS3 by four months.
The retailer which stands to lose the most from the delay is Game, the UK’s leading games console and software specialist, which was expecting to receive the strongest allocation of PS3 consoles and software among UK retailers. These sales would have provided the retailer with a boost to both turnover and profits prior to its financial year ending in January. Indeed, all retailers receiving an allocation of PS3s will suffer a reduction in sales and profits.
But the hit on sales and profits will be limited by consumers who, having grown impatient with the continued delays of PS3, may instead purchase an Xbox 360 or Nintendo Wii (which is likely to be launched before Christmas). Furthermore, the average selling price of both of these machines will be below GBP200, which may lead to some gamers buying these consoles as a stop gap, with a view to trading up to the more powerful PS3 later in 2007 or in 2008. If this occurs, some UK retailers may receive more revenue as a result in the long term.
Furthermore, the US and Japan release of PS3 will no doubt create even more demand in the UK as good reports come in from across the Atlantic singing the new console’s praises.
And the reason for the delay – while disappointing for retailers and embarrassing for Sony – suggests that when the PS3 does finally arrive in the UK that it will be worth waiting for. The delays stem from difficulties in mass-manufacturing a crucial component of the console’s Blu-ray high definition disc drive.
Like the reasons for the previous delays, the technology is so far advanced and untested that inevitably there are teething problems. However, Sony is confident its machine, though a long way behind the Xbox 360 in terms of unit sales, will catch up ground quickly and long outlast its rival well into the next decade.
Source: Verdict Research
