Sony stock drops after Merrill Lynch predictions

The financial firm expects PS3 to be delayed until fall in Japan, but Sony holds strong to its spring release plans.

FULL STORY:

Sony’s stock is down on the Japanese market today, following a report from Merrill Lynch that predicted Sony would be forced to delay the PlayStation 3 until Fall 2006 in Japan and early 2007 in the U.S. The Merrill Lynch report, among other things, cited the manufacturing cost of the PS3 — about $800, according to their calculations — as prohibitively expensive for a spring launch.

Still, Sony holds strong to its spring release deadline. Here’s what a spokesman told Bloomberg news:

“There is no change in our original plan to release the console in spring 2006,” said Kei Sakaguchi, a Sony spokesman in Tokyo.

Can’t get much clearer than that. We’ll just have to see if they come through in the clutch.

Sony Shares Fall on Report of PlayStation 3 Delay [Bloomberg]

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