Source

Some choice excerpts,

Most important implications for game software vendors
Commentary from our Japanese colleague Hitoshi Kuriyama yesterday regarding
the possibility of a delayed Playstation 3 launch has important implications for
game software vendors, and somewhat less notable implications for hardware
and semiconductor vendors. The analysis cited reports that the launch of PS3
could be delayed by between 6 and 12 months, with the result being an autumn
launch in Japan and a late 2006 or early 2007 launch in the U.S. We address the
possible impact on different businesses in this note.


It?s now clear that the box is prohibitively expensive to
make
We wrote last November (The Next Game Consoles, 11/2/05) that Sony?s design
choices for the PS3 had resulted in an expensive and difficult-to-manufacture
product, and we think that we?re seeing the consequences of those choices play
out now. In particular we think the problem points are the Sony Cell processor
and the Blu-Ray drive. Our updated analysis indicates that the initial bill of
materials for PS3 could approach $900, falling to $320 three years from launch.