S&P: Sony unaffected

Standard & Poor's said that the delay in launch of Sony Corp.'s (A-/stable/A-2) PlayStation 3 (PS3) home-video game console could impede a recovery in the company's profit, but would not lead to an immediate rating action.

The agency noted that Sony announced that it would postpone the release of the PS3 in Japan to early November 2006 from this spring because finalizing specifications for copyright protection technology to be incorporated in its Blu-ray Disc technology is taking longer than initially expected.

A substantial delay in the recovery of its earnings and cash flow could lead to an outlook revision or downgrade, the agency said.

S&P added that key factors to be monitored include whether Sony can minimize the adverse effect of the delay by launching the PS3 product simultaneously worldwide in November before the Christmas selling season starts.

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