BetaNews | Analyst: PS3 Delay Likely, Cost at $800

BetaNews Analyst: PS3 Delay Likely, Cost at $800: "Microsoft may end up the only manufacturer with a next-generation game console on the market for at least another six months, says Merrill Lynch. A delay in Sony's PlayStation 3 could cause the electronics giant to miss the crucial holiday season in a majority of the major markets, according to analysts.
Merrill Lynch Japanese analyst Hitoshi Kuriyama told clients in a research note late last week that he was seeing evidence of a delay in the PS3 that could push the launch into autumn in Japan and late 2006 in the US. Any further delays would mean the console's debut into 2007, he warned.
Rumors of a delay in the console's development first began to circulate shortly after the launch of Microsoft's Xbox 360. However, Sony dismissed such talk, saying it was on track to release the PS3 in the spring of this year.
Behind the delays is Sony's choice to use the Cell processor and Blu-ray drive, Merrill Lynch said in a follow-up report. The initial bill of materials for the console could also reach $800, with that figure gradually falling to $320 within three years."