Analyst slashes PS3 shipment forecast

August 24th, 2006, 13:40 Posted By: wraggster

Japanese brokerage Mitsubishi UJF Securities has lowered its rating on Sony, predicting a 50 per cent shortfall in the company's launch estimates for the PS3 which sent the share price down 3 per cent.

According to a report on Reuters, the analyst believes that component shortages - such as those which plagued Microsoft's Xbox 360 launch last year - will mean that Sony is unable to manufacture anything like the number of consoles planned in the short term.

"In the medium term this would mean that it would take longer for Sony to recover its huge investment in PS3 and thus we are downgrading the stock," stated Masahiko Ishino, Mitsubishi UFJ Securities analyst.

Shares in the company fell by 3.2 per cent on the announcement, investors wary of Sony's ability to deliver on its shipment forecast for the PlayStation 3.

The news comes just days after the platform holder clarified its November launch plans, forecasting 2 million units for the launch, with a further 2 million by the end of the calendar year.

Full scale production of the console - which is based on the advanced Cell Processor and Blu-ray DVD technology - has yet to begin, casting further doubt on the company's ability to deliver on its ambitious launch promises.

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