Sony Delays its Blueray Release -- Microsoft Hoping to Cash in (MSFT, SNE)

Microsoft (MSFT) has its own problems with delayed products, but honchos there are likely hoping that a certain product gets pushed back at least one more time. Sony (SNE) has delayed the release of the first Blu-ray DVD player until August 15. A further delay could threated the November launch date of Play Station 3 - and any delay past November would likely kill the crucial holiday season for game player sales.

As it stands, Microsoft’s X-Box 360 will have a one-year sales lead and many more titles by the time Sony’s player hits the shelves. As yesterday's Cnet News reported:

Video fanatics will have to wait a few extra weeks before they can buy a Blu-ray player from Sony. The company’s web site says the targeted release date of the BDP-S1 is now August 15.

In March, Sony said it would come out sometime in July. It will cost about $1,000.

The Japanese electronics manufacturer, which is trying to mount a comeback, will also put Blu-ray drives, which hold more than standard DVDs and play high definition movies, in notebooks, desktops and its PlayStation 3 game console. The notebooks and desktops are expected to come out in early summer, which is now. The RC 300 desktop, which will contain a Blu-ray drive, is not available yet, according to Sony’s web site. It is not clear if these products will also be pushed back.

This is not to mention that by stubbornly sticking to the Blu-ray format to the extent of forcing it on Play Station customers, and at a much higher price than the X-Box or upcoming Nintendo Wii, Sony risks pulling off another Betamax fiasco.

SNE 1-yr chart: