Sony was hit yesterday by its second technology disaster in a few weeks as senior managers admitted the pre-Christmas launch of its commercially vital PlayStation 3 video gaming console will be delayed for four months in Europe and seriously hampered in the United States and Japan.
Embarrassingly for Sony, once famed for its manufacturing expertise, the PS3's planned November launch has been upset by a failure to overcome technical problems in mass-producing a laser diode needed to make the product's ground-breaking Blu-ray disc laser work properly.
The setback - which follows an earlier postponement from spring to November - has forced the European launch to be delayed until March, while the number of units that will be available this year in the US and Japan will be halved from 4 million to 2 million.
"I am very sorry. I think there are many people who are looking forward to PS3, so I really regret the delay," said Ken Kutaragi, chief executive of Sony Computer Entertainment, who is known as the "father of the PlayStation".
The delay is a serious blow to Sir Howard Stringer, Sony's Welsh-American chief executive, who is trying to turn around the electronics group amid a rash of technology problems. The PS3's delay means it will go on sale well behind both its main rivals. Microsoft's Xbox 360 was launched late last year and Nintendo's Wii is expected to appear in the final quarter of this year.
The delay is the second big dent in Sony's reputation for technological excellence in three weeks, following last month's safety recall of lithium ion batteries used in Dell and Apple computers that will cost it 20-30 billion yen (€134-€201 million).
Mr Kutaragi said Sony engineers had assured him they could start mass production by the end of this month. The delay will limit shipments to the US to 400,000 when it is launched there on November 17th. Shipments for sale in Japan will amount to only 100,000 when PS3 is launched there on November 11th.
Mr Kutaragi said Sony had considered air-freighting the PS3 to overseas markets, which would have increased the time available for pre-launch production, but the plan had proved too expensive.
The company said it was unable to buy stocks from other suppliers because the blue laser diode is so technically advanced that few other companies can make it.
Mr Kutaragi admitted that the group's problems with Blu-ray disc laser diodes raised questions about its ability to deliver state-of-the art technology.
"The fact that [ Sony] cannot do it means they lack some kind of ability," he said.
Worryingly for Sony, the questions extend to the Blu-ray disc itself. The PS3, which comes with a BD player, was expected to be the main driver of the Blu-ray disc standard because the PlayStation range sells in vast numbers and because at $599 (€468), consumers would be able to acquire the new players relatively cheaply.
Sony said it would increase production from 1 million units per month to 1.2 million units.- (Financial Times service)
