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Wall Street reacts to PS3 delay

Analysts mostly upbeat, third-party publishers' shares climb on news that the next-generation console will arrive in time for the holidays.

If you were a third-party publisher spending tens of millions developing a PlayStation 3 game, the last few weeks must have been pretty nerve-wracking. As the year has progressed, more and more analysts and industry insiders were predicting that the next-generation console would miss its spring 2006 launch date and instead launch in the fall. With Sony staying resolutely mum on the matter, some analysts went one step further, saying the PS3 might not launch until 2007 in the US and Europe--missing the all-important holiday season.

So when Sony announced earlier today that the PS3 will go on sale worldwide in November, many major publishers breathed a sigh of relief. So, too, did their stockholders. On the Nasdaq, Electronic Arts gained $1.51 (2.85 percent) to hit $54.38, Activision rose $0.72 (5.5 percent) to $13.93, THQ jumped $1.06 (4.3 percent) to $25.9, and Take-Two Interactive rose $0.42 (2.6 percent) to $16.69.

For its part, Sony's stock rose on the New York Stock Exchange, adding $0.17 (0.37 percent) to close at $46.63. However, the announcement came after the close of the Japanese Nikkei market, on which Sony stock slid 1.8 percent to end the day at 5,470 yen ($46.57).

Overall, most major investment firms' analysts were pleased with the PS3 delay and Sony's other big announcement, a price drop for its PlayStation Portable. "We view a worldwide November launch as positive," UBS's Mike Wallace said in a report. "In our view, recent fears that the PS3 launch might have been delayed until as late as 2007 have been overblown. The European launch is earlier than expected, as we had been expecting a launch in Europe in Q1 2007."

"While this launch date is a delay for Japan, it is a clear positive for our US-publishing stocks, given recent speculation about a possible pushout into Q1 2007," said Shawn Milne of Friedman Billings Ramsey. Milne also pointed out Sony's supply projections as a net win for the industry. "Sony indicated that it expects 1-million-unit monthly production capacity at launch and 6 million units by Q1 2007 (well above Microsoft's Xbox 360 target of 2.5M in its first 90 days). We were expecting 500K-1M at launch in 4Q for the US."

However, analysts warned of similarly bumpy retail road come November. "We think the PS3 launching this year is good news longer-term for the game stocks, but near term, the limited hardware quantities could lead to some earnings misses in Q4 this year," said Wallace. Milne was blunter in his assessment. "We expect shortages and another choppy holiday," he said, adding, "this is clearly not going to be a cheap box ($400-$500 likely)."

However, some analysts were less upbeat about the PS3 delay. One analyst who wished to remain anonymous said that the move is "giving its rival, Microsoft's Xbox 360, a two-holiday season advantage." Hiroshi Kamide, analyst at KBC Securities in Tokyo, told Reuters that the delay could come back to haunt Sony. "The Xbox 360 will now have had a year's head start," he said. "The danger is that [Microsoft] could target big-hitting titles at the launch of the PS3 just to sabotage it."

136 Comments

  • trotter_2005

    Posted Mar 18, 2006 4:41 am GMT

    It will be good for game production when all systems are out, As once there is some compitition, We will start seeing even better games out there. It is very early days, Roll on 2007, >2008,.
    Imagine what these games are going to look like. Its going to be cool.
    I own a 360, and i will buy ps3..
    But the 360 has more going for it than just halo3..
    So, you sony fan boys dont think that, thats all The compition the ps3 has to stand upto. There is Gears of war, and more. When E3 comes we will see some great games coming out for the 360, Some we dont know of yet.. I bet you. The 360 has a leg up on the ps3 as its had more time to make games than the ps3.
    The fututre looks gooooooooooooooooood..!

  • SavoyPrime

    Posted Mar 17, 2006 9:36 am GMT

    Well, the end of the year will certainly be interesting.

  • plc

    Posted Mar 17, 2006 4:45 am GMT

    I work in a EB Games Store. Since the notice of a worlwide launch in my store the phone go mad crazy even yesterday i got people making a line outside the store to prepurchase the system early in the morning. Microsoft do a descent launch but Sony have too much fans around the world and remember that ...Microsoft doesn't have MGS4.

  • mickel_darmawan

    Posted Mar 16, 2006 8:02 pm GMT

    PS3 will do BEST when it's being launch, don't worry.

  • bobsagat247

    Posted Mar 16, 2006 7:27 pm GMT

    Microsoft is now in a pivotal position for the following reasons: 1) 1st to release next-gen system 2) extremely high demand for 360's 3) rapidly increasing installed unit base 4) and dont forget the day when the long awaited ps3 drops, microsoft will fire back with the highly anticipated halo 3(I want it) wow, what a stategy go M$

  • tedhead27

    Posted Mar 16, 2006 4:42 pm GMT

    MS can throw every bright shiny new game at the PS3 and it will be like trying to stop a train by shooting a BB gun at it. The arrival of the PS3 WILL be the single greatest moment in video game history.

  • tedhead27

    Posted Mar 16, 2006 4:40 pm GMT

    MS can throw every bright shiny new game at the PS3 and it will be like trying to stop a train by shooting a BB gun at it. The arrival of the PS3 WILL be the single greatest moment in video game history.

  • enthusia2005

    Posted Mar 16, 2006 3:22 pm GMT

    I guess we now all know when Halo 3 is coming out...

  • billa_gorilla1

    Posted Mar 16, 2006 2:42 pm GMT

    I think microsoft and nintendo could easily screw with the PS3 launch (that is if Sony isn't lying in the first place about specs, dates and if its overpriced). Firstly, Nintendo will finally release the Revolution being the cheapest console and of course being 'revolutionary', plus Microsoft will cut the price of the 360 and release a few killer apps exclusive to 360 like Gears of War, Halo 3, Star Trek: Legacy, Mass Effect, Huxley and probably many others with a release around that period. Actually, looking at that list you gotta admit the 360's got the better games. Whats the Ps3 got??? Killzone 2 and MGS4 are the only interesting ones and everything else is a sequel.

  • yanks26wsw

    Posted Mar 16, 2006 2:38 pm GMT

    pffft sabatoge

  • Bluestorm-Kalas

    Posted Mar 16, 2006 2:25 pm GMT

    linkman the revolution does not even touch the ps3 viva la suckage of nintendo revolution

  • PazUSA

    Posted Mar 16, 2006 1:30 pm GMT

    Would love to see a great year for Microsoft, Nintendo and Sony without one company having a significant hold on the market - more syatsm means more competition = greater innovation = better games which is what it's all about. It's NOT about the tech specs or any of that c**p. Each one will be great, different and appeal to different buyers. Next Gen is here and it's a GREAT time to be a gamer.

  • NagaSadow

    Posted Mar 16, 2006 1:12 pm GMT

    This will happen and mark my words, couse all my predictions come true
    Sony will experience a complete sellout in the 4th quarter. But they won't be able to meet demand. Thus their sales will be low.
    X360 and Nintendo Revolution will also go for a sellout, couse ppl cant get a hold of PS3 among other things..
    Sales of Revolution will be insane in Japan, just like the DS sales. Becouse its cheap, fresh and innovative and will have lots of "nonegame" titles at launch. If the "nonegames" do as good a job in EU and the US as in Japan, Revolution will experience unheard of sales in those territories as well.
    So, all manufacturers will have a good time come this xmas

  • jimbo102671

    Posted Mar 16, 2006 11:28 am GMT

    There will be PS3 shortages. It doesn't take an analyst to figure that out. I can already see people so desperate for a PS3 this December that they're willing to pay 3 times retail (or more) to buy one on eBay (like what happened to X360 last December).

  • PazUSA

    Posted Mar 16, 2006 11:23 am GMT

    TheTrooperUK - well said that man......Both systems are / will be great in their own rights and unique ways. I'm loving the 360 and looking forward to PS3 once I see how much it'll cost (I will probably wait until it's $500 o before jumping in).......Maiden Rulz!

  • boolow407

    Posted Mar 16, 2006 11:16 am GMT

    I dont know about stockpiling 360,s, but I agree, a shortage of PS3's would drive sales for other systems.

  • Longhorn

    Posted Mar 16, 2006 11:06 am GMT

    How can one say that the Xbox 360 has a one-year headstart when nobody can *get* a 360? Certainly not a "two-holiday" headstart.

  • Loutronz

    Posted Mar 16, 2006 11:01 am GMT

    Like I said yesterday.
    Microsoft is going to bank on the ps3 shortages.
    There is no way that everyone who has the ps3 on their X-Mas list is going to get one because they simply cant make enough. Its a testament to Sony and its huge user base. Microsofts 360 shortage will miraculously disappear and the folks who pop in to their local Ebs and Gamestops looking for the ps3 will have shelves of 360s looking at them. They have to put something under the tree, right? Another advantage of launching first for MS. I wouldn't be surprised if this was a major part of their strategy. Any units they have sold to this point have been vanilla. There really is no competition for them at this time and when it does arrive there simply wont be enough units to supply demand. MS is stockpiling for the ps3 launch. Just like when the 360 launched and ps2s were flying off the shelves because there were no 360s available.

  • Neoyamaneko

    Posted Mar 16, 2006 10:34 am GMT

    And of course, whatever Sony says concerning the Playstation line is to be taken at face value as irrefutable proof, as they have never told a single lie since 1999. Score yet another victory for Kutaragi and the evil empire on the gullibilities of the consumer.

  • robbie80

    Posted Mar 16, 2006 10:32 am GMT

    the ps3 is going to be expensive because you have to pay extra for the hard drive and game are going to be $10 more than the xbox 360 game but if the game are good and not crap then i dont mind paying that bit extra for the ps3 .i own a xbox 360 the lanuch game were a bit ok cod and need for speed were good and ghost recon 3 is best so far the xbox 360 is still a great console sony ps3 will be better but it all about the game .ps3 and xbox 360 will have great game and crap game. i not so sure about the nentendo new console the only game i like legend of zelda i did not like metriod prime that game **** but i plan on buying all 3 next gen machines. im happy that europe getting the ps3 this november and not in 2007. 2006 is going to rock this year cant wait till E3 for more new.

  • Kizzle28

    Posted Mar 16, 2006 9:58 am GMT

    I'm glad they finally have a real release date window. For the sake of competition, let's hope the PS3 delivers. Even though I'm an Xbox supporter, it will be good for the consumers if the PS3 does what Sony says it is going to do. Only we will reap the benefits.

  • samuelroberts

    Posted Mar 16, 2006 9:55 am GMT

    Posted By UntoldDreams:
    Hey more Sony news! That means 50% of the comments will be by kids trash talking Sony! Yeah Gamespot!

    Don't be so ungrateful.

    I hope Sony gets it out by then, and that we get some price news at E3. God, E3 can't come fast enough.

  • katriv2

    Posted Mar 16, 2006 9:35 am GMT

    couldnt microsoft afford to issue a price drop, in november? that way they would have the cheaper next gen console (between ps3 &360), and then roll out the big guns with the halos and rpgs and other crap that would sell systems and boat loads of software. could slag sonys sales down a bit.... regardless ps3 is gonna rock, and so is rev.

  • jcdc554

    Posted Mar 16, 2006 9:16 am GMT

    People seem to think that Halo 3 is the answer to all problems.

  • Dantai

    Posted Mar 16, 2006 9:02 am GMT

    Hey guys remember how that Metal Gear Solid 4 trailer made everyone forget about the 360, and it was just a trailer! PS3 has got Devil may cry, MGS, GT, God of war, final fantasy, SOE backing it and others, also GTA is always released first on the PS and it sells more on the PS then xbox. All M$ has is Halo, no other first party title BUT halo, but that isn't a bad list so far...lets just wait and see

  • frolonyc

    Posted Mar 16, 2006 8:58 am GMT

    Man this is so funny, I mean listening to some of you people really makes me laugh. Me I'm a fan of games and not the company that puts them out. Now, did anyone really think that the PS3 Would be out in Spring? Do any of you guys read the business section or look at the financial news reports? The technology that they are using at the present time would give the PS3 a base price of $1500 and thats being generous. Sony can put the PS3 out now, but they would loose so much money if they go head to head with Microsoft's Machine that financially it just doesn't make since. Mark my word that when the system does come out you will have to pay $500 plus for the thing and at least $70 for the games. I don't know about you guys but personally, I like my money.

  • ribbz22

    Posted Mar 16, 2006 8:33 am GMT

    bottom line: this thing is going to sell like crazy during the holidays

  • hush404

    Posted Mar 16, 2006 7:47 am GMT

    I love it how how analysts and xboxfanboys alike throw the word Halo 3 around as a counter to the PS3 launch... Halo 3... even if it turns out to be the perfect shooter can't even scratch a launch of a system. If anything Halo3 would be hurt by the hype of the PS3 launch.

  • Aduinlothar

    Posted Mar 16, 2006 7:28 am GMT

    I really love my Xbox 360 and i'm an xbox fan since the launch of the xbox 1 especially since xbox live. Ok let's start. The Playstation 3 will probably and surely sell better than the xbox 360. Microsoft have a great product, but since it doesn't sell well in japan... they won't be #1 worldwide. The only place they can give sony a good race for #1 position it's in North america and europe. I think at the end microsoft will stay a strong number 2 player overall. Maybe on the Next Generation war IF they manage to make some good game for the japanese market than they may succeed to be number 1. Sony launch delay isn't a bad thing at all for both microsoft and sony. It will give sony more time to finalise their ps3, more time for developper to create game for the ps3 launch and also reduce the price of the ps3 overall since the Blueray drive will cost less to produce. One thing sony really need to do it's to include the hard drive in the ps3, since you'll need it to play game. I really hope it will be included in the package but.. sony know where to make money on customer. Remember 40$ for a 8MB memory card??? 400$-500$ for a ps3 plus 100$ for a hdd(Remember it's required to play ps3 game) I really hope they won't do that for us. Microsoft on the other end will increase i'ts dominance since they don't have competition right now, it will give them more time to prepare for sony launch and will sell more Xbox 360 by that time. Maybe halo 3 ( likely) for november or fable 2 (Unlikely)?!? Who know? And for nintendo fanboy... well... i'll pass since i don't really care about the revolution (No HDTV Support, the Controller = who know? and what about the game (Mario, pokemon, another mario and ohh did i mention pokemon? What about mario party? etc.). Ok i just want to let you know that i dont know if im going to buy a PS3 at launch. It will depend about the controller because the design really piss me off (Well it won't stop me from buying one but do something about that controller isssh), it will also depend on the game launch lineup (Metal Gear Solid 4 and Killzone 2 at launch Unlikely but i really hope it will) and also about the HDD if it's included or not. 400$-500$ US with the hdd max for me.

    P.S. English is not my primary language. Who care anyway?

  • NeoJedi

    Posted Mar 16, 2006 7:27 am GMT

    Well guys, it means that Halo 3 will be coming out in November 2006... at least that's some good news!

  • REELDIEL3

    Posted Mar 16, 2006 7:15 am GMT

    true dat!!!!!

  • ReyWing

    Posted Mar 16, 2006 7:02 am GMT

    For Sony, I think its all about the Japanese gamers though. If MS ever wants to win over that crowd, they need games that WILL appeal to them - e.g. dating simulations, RPGs, strategy/tacticle rpgs, 2D fighters, pet simulators (maybe Viva Pinata?), world sims, etc... imho, MS already won over a lot of american gamers bcuz xbox has the killer 1st person shooters - c'mon we were raised on Wolfenstein and Doom, WHY wouldn't we enjoy Halo/2, PDZ, or COD2? Anywayz, my point actually is that MS needs a killer game/franchise in all these categories and more.

  • REELDIEL3

    Posted Mar 16, 2006 6:59 am GMT

    yeah now we have a firm date...wait spring was a firm release time also..wasn't it or was it. ABRA...CADBRA!!!! I want a PS3 just like the next guy but man Sony must have some big stones. I mean they are really giving MS an edge. You know when they launch there will be shortages and people will flip to the 360 or Rev if PS3's aren't readily avaliable. I mean most of us serious gamers will have all but your typical mom and pops xmas shopping don't know the dif. So MS will have time in production to get a bunch of units ready and Sony will just be starting.....seems like right now MS actually is winning the first few rounds of this match. It should be intresting. I mean heck I think I will buy a rev now before the PS3.

  • Archive2000K

    Posted Mar 16, 2006 6:50 am GMT

    I don't care, I will own them all!!!!!!!!!!!!!!

  • ReyWing

    Posted Mar 16, 2006 6:49 am GMT

    [This message was deleted at the request of the original poster]

  • mamad_raiss

    Posted Mar 16, 2006 6:49 am GMT

    sony fanboys thinks and they have dreams about MGS4,DMC4,Tekken6 ,GOW2,killzone2,RE5,grantursimo4 and ... will release in first day? then what will remain for 2007 ? you think they want release all of these games in launch date? ok now check this out if you have your dreams I can have my dreams too------------------------------------------------------------
    xbox360 november release games:HALO3 ,Ninja gaiden2,gears of war,blue dragon,jade empire 2 ,forza motor sport 2,PDZ2,PGR4,mass effect,lost odyssey,Farcry2 ,call of duty 3,Fable2, and... --------------------------ok now which one is better?be honest people please please ...please...

  • ReyWing

    Posted Mar 16, 2006 6:49 am GMT

    "However, analysts warned of similarly bumpy retail road come November." If I were a retailer, I would be worried. All these new systems and games are going to need shelf space. Sony is definately going to be asking for the bulk of it but who would pay the outrageous prices for Sony's products? Extra but NECCESARY hard drive to play games... extra batarang controlers... extra eye-toy2. And why are gaming stores selling UMD MOVIES btw? Next, gaming stores will be selling BD movies on their shelves. Anywayz, if I was a retailer I would be wondering what the prices will boil down to. As a gamer, all these products promise the same experience... but which one will be cheapest and worth it! I for one don't see how the PS3 can be cheap and worth an expensive bill.

  • regulesblade

    Posted Mar 16, 2006 6:43 am GMT

    Uh oh sounds like the plot is beginning to thicken

  • Talk2DaHand

    Posted Mar 16, 2006 6:39 am GMT

    I think the MS counter attack is going to consist of getting most of the PS3 titles to their Xbox 360 console. Notice I said most.

  • inoperativeRS

    Posted Mar 16, 2006 6:34 am GMT

    " Hey more Sony news! That means 50% of the comments will be by kids trash talking Sony! Yeah Gamespot!"

    And the other half is kids trash talking MS and Nintendo.

  • tirmothy87

    Posted Mar 16, 2006 6:32 am GMT

    Halo sucks, its just a wanna be cool shooting game with some F*** up story line. And if microsofts counter is Halo 3 its not going to effect the ps3 sales, you half to be a complete dumb ass to think that some stupid xbox game will interfear with a sony console launch!

  • mamad_raiss

    Posted Mar 16, 2006 6:27 am GMT

    it's funny . sony fanboys:
    2 months ago : PS3 will release in spring no delay(now it's november or maybe later)......
    1 months ago: PS3 will be cheaper than 360(now the best price will be 600-700$)......
    today: PS3 will have better games than XBOX360......
    1 year later : but ps4 will be better than next xbox --------
    please be honest people please....please...

  • XenonHID_VQ

    Posted Mar 16, 2006 6:19 am GMT

    Jeez...PS3 and Rev at the end of this year...i might have to sell my car in order to afford them and some games... hno:

  • grayfox_2k

    Posted Mar 16, 2006 6:13 am GMT

    yeah whatever

  • skitzocyko

    Posted Mar 16, 2006 6:12 am GMT

    Whatever

  • Misterhon

    Posted Mar 16, 2006 5:43 am GMT

    Games Like That Won't Convince Me 2 buy a 360.. might be good games.. but just for 3 titles. or more.. no way.. i loveplaystation.. the games are great service is good.. so i'ma stick wid sony.. no matter what microsft pulls out..

  • jonnyjd

    Posted Mar 16, 2006 5:30 am GMT

    Sony's announcement was late and I'm not sure what the purpose was behind the silence but I'm glad it's over with.

  • trotter_2005

    Posted Mar 16, 2006 5:28 am GMT

    Well i hope all you sony fanboys are having lots of fun.....As for me. Iam off to play ghost recon advanced warfighter. IT IS AMAZING.
    Enjoy your wait. at least i have something to play. Untill november...8)

  • chrisdojo

    Posted Mar 16, 2006 5:18 am GMT

    i'm going to laugh when they have less than 10 release titles.

  • lafsdave

    Posted Mar 16, 2006 5:14 am GMT

    I really think it's funny, it's a war....
    on one side u got kids or new gamers....or kind of poeple that want a console that is finally like an INFECTED WINDOWS SYSTEM that microsoft test in solding... but they always have a good but capitalism solution...
    The Xbox live network is first and most important only to update the machine in case that there was a lot of major bugs... like in xbox 360 project gotham
    but for the users that got the live network 1 weeks later the bug was corrected but for all those users who not got it....well better not think to it
    ....When u think about sony product it's true... it is not for beginner, but quickly another facts, i try to let an xbox aside with a ps2 run over than a month.... lol the xbox busted 5 days later then my ps2 finally ran 2 months and i turned it off.... u know when u buy a car or elsewhere the important is the reliability.... and as windows every products, they don't want us to be happy of the reliability but want us to pay for multiple service to get a better gaming experience, instead of sony that want to ship the machine at the best it can be and not be obliged of repairing or servicing tons of consoles..
    and what more u can be asking kids... lol the ps3 will definitly come with a 60 gb hd, and will be 2 options ... free online play or paying to get all the xlive bulls...!
    so the 60 gb means that the developers will make the game like pc does installing some files on it to start really quickly, so i think i will be the next 5 years console..
    scuse my english....

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