Sony Shares Drop in Japan on PlayStation Delay Report

Shares of Sony Corp., the world’s second-biggest consumer electronics maker, fell early today in Japan after a report by Merrill Lynch & Co. said the release of the PlayStation 3 video game console might be delayed until as late as next year.

The shares fell as much as 4.4% and ended the morning session down 2.2% at 5,380 yen ($45.57) in Tokyo.

Sony, which had planned to start selling the console in Japan in the second quarter this year, may introduce the player there in the fall and in the U.S. in late 2006 or early 2007, Merrill Lynch said in a report dated Friday.

The delay may give rivals Microsoft Corp. and Nintendo Co. more time to win market share with their new consoles. Microsoft’s Xbox 360 went on sale in November and Nintendo’s successor to its GameCube is due for release this year.

Sony said today that it still aimed to launch the PS3 this spring, but acknowledged that the timing could be pushed back.

“We’re aiming for spring, but we haven’t announced specific regions,” a spokeswoman for Sony Computer Entertainment said. She added that some of the detailed specifications of the PlayStation 3 had not yet been finalized, such as those related to the Blu-ray DVD format and the input and output of video and sound.

The PlayStation 3 may cost Sony $900 to build at the time of release and drop to $320 in three years, according to the Merrill Lynch report. Microsoft loses about $153 on each Xbox 360, which retails for $299 to $399, researcher ISuppli Corp. said.

Nintendo last month said its Revolution console might sell for less than $300 and would go on sale in November.