Sony will be short of PlayStation 3s, analyst predicts

Blame it on those pricey components inside the PlayStation 3. Mitsubishi UFJ Securities on Wednesday said Sony would likely only ship 3 million units of its new game system by the end of Sony's fiscal year (March 31), according to Reuters.

That's half the amount Mitsubishi predicted earlier. Sony itself has said it would get 6 million out the door.

Sony's stock is off as a result. Sony has already had to delay the game machine. Shortages of consoles during the holiday season could allow Microsoft to gain more market share. Microsoft had its own supply problems with the Xbox 360 last year. Buyers got mad, but they couldn't exactly buy the alternative cutting-edge box from Sony at the time so any damage was greatly mitigated.

A slow ramp-up could also hurt Sony's ability to recover its investments. The first generation of PlayStation 3s will sell for less than they cost to make. Sony expects to make up the difference with game titles. However, the longer it takes the console to proliferate in the market, the longer it takes to recoup the investment.

The PlayStation 3 costs more to produce than the Xbox 360, mostly because of two components: the PlayStation 3's Blu-ray drive and the Cell processor, an ornate piece of silicon.