[url=http://www.gamespot.com/news/2005/08/02/news_6129862.html]Gamespot[/url] is running a story that is based on something an analyst said, so enjoy a little salt with this. Speculation is that Sony could quite possibly intentionally delay the PS3 until 2007 and ride profits from the PS2 for another year.

[quote]In a research memo sent to investors, Wedbush senior analyst Michael Pachter set up the following scene for a delayed PS3 launch. It starts with the current-generation Xbox being priced down to $99 post-Xbox 360 launch, but no lower. Concurrent with that situation–an Xbox 360 at an unspecified price and the Xbox at $99–Sony would drop the price of the PlayStation 2 to $99.

There are two components to that pricing strategy: the first is that a $99 PS2 would offer a significant distraction as the 360 launches. [b]As Pachter states: “We believe that the company will attempt to disrupt the Xbox 360 launch with a price cut, and as a result may succeed in diverting attention away from the higher-priced next-generation console.” [/b][/quote]
Do they honestly think that will work? $99 PS2 that everyone already has or a next gen console for $299 that has features that blow away the PS2. If Sony thought it was tough for Nintendo and Microsoft to regain ground from a 1 year launch advantage just wait until they give Microsoft more than a year.

If you launch 6 months after Microsoft then you almost guarantee that your loyal fanbase will wait to purchase a PS3. Push that date back more than a year and they will all run out and get the newest console which won’t be a PS2. This builds the user base for the Revolution and the Xbox 360. Does Sony not understand this principle?