The tech world has been abuzz with the announcement and the speculation of the causes and impact of two high-profile product delays. Sony announced that the Playstation3 (PS3) would finally ship in early November of this year; a week later, Microsoft announced that the first edition of its updated operating system, Windows Vista, would not ship until November (with consumer versions to ship in January of 2007.

Both of these products are critical to their respective corporate creators, both have been delayed beyond initial estimated launch time frames, and both are introducing massive new changes to the products that are slowing down their availability.



Who has the most to lose? Sony.

• Sony's delay is potentially more costly in terms of revenue and market share. Certainly a delayed Vista gives Microsoft another media-induced black eye, as pundits point to the vendor's inability to deliver on its core offering. But while Apple's Mac OS and Linux-based operating systems are a threat, Microsoft won't be losing much market share. Most consumers and organizations will continue to buy Windows XP computers.
  
  But in the game console world, the PS3 delay may alter the balance of power. Sony dominates the console space today with its PS2, but the Xbox 360, launched late last year, will have almost a full year to attract consumers and game developers. While PC users want to keep old software, most gamers will buy new consoles for new content. PS3 games may be exciting, but if Microsoft can improve the quantity and quality of 360 games, Sony will have to fight a much more even, if not lopsided battle.
  
  History is also potentially on Microsoft's side in the console race. PC operating system delays have not swayed purchasing on a significant level, whereas game console market leadership has dramatically shifted in the past as former leaders Nintendo and Sega can attest to.
  
  
• Sony has more to do in terms of fleshing out the PS3. While premium versions of Vista will sport a flashy new interface and offer a healthy range of new features, the OS is essentially a more reliable, nicer looking upgrade to XP.
  
  But in the console market, Sony has to play catch up to Microsoft in terms of a critical new feature of next-generation consoles: an online service for connecting gamers and providing additional content. Microsoft's Xbox Live online service is in its second iteration. Sony will be launching its first console online service at the same time it debuts the PS3.
  
  Each consoles game portfolio (number of titles, unique and compelling titles, breadth and depth of game categories) will be critical. Sony certainly won the PS2 versus original Xbox battle in this regard. But the online service and its ease of use in terms of generating and managing profiles, game rankings, and connecting gamers will be critical in deciding who wins the war (yes, Nintendo will be launching its new console some time this year, but we think it will remain a solid third place contender).
  
  
• Sony has further to fall in terms of public perception. Many people dislike Microsoft and its products for a variety of reasons, but these feelings are not new. Gamers with an anti-Microsoft grudge usually make peace with its creator on the console level; many others don't care what Microsoft does in other markets and simply evaluate the Xbox on its own merits. Vista will be very late, but users have come to expect significant delays with Microsoft software releases.
  
  Sony, however, is facing a relatively new image challenge, and not just with its PS3 delay. It has been trounced by Apple in the digital music space, a space it once dominated in the Walkman-era. It suffered a major public relations disaster last year when its music division sold CDs that installed dangerous software (a root kit) on Windows PCs without the knowledge of consumers. A successful PS3 launch may help it once more regain its coveted consumer adoration. A launch failure, or even one that does not meet expectations, will be another blow to the electronics giant.