Sony will postpone the scheduled launch for its PlayStation 3

Sony will postpone the scheduled launch for its PlayStation 3 (PS3) game console from this spring until August, as the company is facing several issues with its production plans, especially concerning its inclusion of a Blu-ray Disc drive in the PS3, according to Sony's Taiwan-based contract manufacturers.

According to Sony's company spokesperson, although the AACS LA (advanced access content system license administrator) was expected to finalize its copy protection specifications this month, members of the Blu-ray Disc were not satisfied with the level of copy protection and the release of the standard has been postponed.

However, Reuters reported on February 17 that a temporary agreement has been reached, clearing the way for the release of the blue-laser drives. Though a temporary agreement has been reached, backers of the Blu-ray Disc format do not expect products to hit the market until this summer.

Even with specifications for the Blu-ray Disc format being finalized, the high price of the drive will contribute toward Sony delaying its launch. According to a report from Merrill Lynch, the cost of the Blue-ray disc drive will be US$350, while rival Microsoft is currently selling its entire Xbox 360 game console starting from US$399. According to the contract manufacturers, with Microsoft not having to contend with Sony for much of this year, it may launch a version of its Xbox 360 featuring a HD DVD drive for about US$600.

Merrill Lynch put the total BOM (bill of materials) for the PS3 at US$900 initially, and the equity firm added that Sony is facing production issues with the IBM-designed Cell processor and Nvidia-designed graphics processor. Merrill Lynch believes that Sony will not release the PS3 until the end of 2006 or early next year, and it has cut the shipment forecast to 2-3 million units for 2006. In recent media reports, different sources at Sony have been separately quoted as "flatly denying any delay" and "not ruling out a delay."

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