Why Is There A Playstation 3 Shortage

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Why Is There a PlayStation 3 Shortage?


Overview


Sony has reduced its projected shipment numbers for the PlayStation 3 in the U.S. by the end of 2006, with only 750,000 to 1 million units expected to be available for the holiday season.

Several retailers have announced shortages, with GameStop reporting that they can only fulfill 60% of their preorders. Amazon has stopped accepting preorders altogether due to uncertainty about availability before 2007.

The Reason Behind the Shortage


The shortage stems from Sony's decision to include Blu-ray technology in the PlayStation 3. This feature allows for high-definition gaming and movie viewing, making the PS3 the most affordable Blu-ray player on the market. However, Sony is incurring a loss of several hundred dollars per unit sold.

The manufacturing challenge lies in the blue laser diode essential for the Blu-ray drive. Two plants, including one owned by Sony, are experiencing lower-than-expected production yields. This has forced Sony to reduce their U.S. supply projections from 4 million to just 1 million units for the year. Consequently, they've also delayed their standalone Blu-ray player, prioritizing available diodes for the PS3.

Looking Ahead


While improvements in blue laser diode production are anticipated over time, the immediate shortage is unlikely to resolve soon. Don't expect to find PS3s readily available in stores until well into 2007.

However, for those eager to own a PlayStation 3, units will likely be available on resale platforms like eBay, albeit at a premium price.

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