Betamax Revisited
(Originally uploaded by liangjinjian2005)
Sony (SNE - Annual Report) has announced yet another delay in the PS3 game console due to production shortfalls of the laser needed for its Blu-ray optical drive. As we noted in the past, the repeated Blu-ray delays are causing Microsoft (MSFT) to salivate over the prospect of more than a year’s advantage in the game console wars, meaning more available games during the holiday sales season and the chance to lower prices and pick up even more share.
Furthermore, the most anticipated game console is now Nintendo’s Wii, with its apparently magical control. Microsoft’s long lead time and Nintendo’s buzz could relegate PlayStation to third place, a sharp comeuppance for the prior leader.
Worse still, it signals that Sony’s hopes of making Blu-ray the standard for high-definition DVD players over rival HD-DVD could go the way of the Betamax. At least Sony should be used to it by now.
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