It was a rough week for Sony, as the company announced they'd be delaying the European launch of the Playstation 3. They also announced they'd be cutting back on the amount of units available for the North American and Japanese November launches from 2 million to 500,000. There were also complaints over reports that most developers won't be shipping 1080p games at launch, a major marketing point for Sony execs.

As for the impact on the North American launch, Dave Karraker, the Senior Director of Corporate Communications at Sony, downplays the impact over at IGN:

"The North American number is just below what we had available at launch for PS2 and is higher than what Microsoft had for Xbox 360. More importantly, in my mind, is that we will have 1 to 1.2 million units available by December 31 in North America. This is more than double what Xbox 360 sold through during the same period (TRST data) and should assure there aren't significant stock dips at retail."

Despite the damage control, the production slack should give both Microsoft and Nintendo a significant edge in Holiday sales, though most analysts predict Sony will still dominate this generation of game consoles. IP Democracy explores how the delay is a big deal as far as the company's finances are concerned, as Sony is stagnant in other sectors, and the unit is the key to their quest to dominate the living room.