Merrill Lynch in a report today says Sony's launch date for Playstation 3 continues to slip. Its analysts suggest PS3 may not launch until the fall in Japan, and only arrive in the U.S. and Europe in late 2006 or early 2007 (likely in such limited supply that it may not effectively be available for another year).
The problem? While consumers will love the bells and whistles like Blu-ray Disc and the Cell processor Sony is building into the player, Merrill estimates that sends the bill of materials up to a budget-busting $900. With most people expecting the PS3 to sell for under $500, that's a lot of red ink to swallow. For Sony execs now, the problem is what to do, what to do?
No doubt the folks over at Microsoft are cackling merrily away at the potential dilemma.

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