Shares in Sony, the world's second-biggest consumer electronics maker, headed for their biggest two-day decline in 10 months after Merrill Lynch said the PlayStation 3 video game console might be delayed until early next year in the US.
Sony's shares fell 4 per cent to 5280 ($66.76). Spokesman Kei Sakaguchi
said "there is no change in our original plan," and the firm intended to release the PS3 in "spring".
Any delay would give rivals Microsoft and Nintendo more time to win market share. Microsoft's Xbox 360 went on sale in November and the successor to Nintendo's GameCube is due out this year.
Sony may start selling the PlayStation 3 in Japan in the northern autumn and by late 2006 or early 2007 in the US, Merrill Lynch's Joe Osha said in a report.
The PlayStation 3 may cost Sony US$900 ($1344) to build at the time of release and drop to US$320 in three years, says Osha's report. Microsoft loses about US$153 on each Xbox 360, which retails for between US$299 and US$399, researcher iSuppli said.
Nintendo's Revolution console may sell for less than US$300 and will go on sale before Thanksgiving in November, Reggie Fils-Aime, executive vice president marketing for Nintendo America, told Cnet News.com last month.
The PlayStation 3 will be able to play Blu-ray high-definition DVDs and includes the "Cell" chip developed by Sony, IBM and Toshiba. The Cell allows more lifelike or intricate game graphics by using multiple central processors to speed operations.
- BLOOMBERG
