Why Is There A Playstation 3 Shortage?

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Sony has again cut their estimate for the number of Playstation 3 units theyll be shipping to the U.S. by the end of 2006. New estimates are saying only 750,000-1,000,000 systems will be available this holiday season.

Several stores have announced they wont even have enough units to cover the preorders they received. Gamestop has reported theyll only be receiving enough PS3s to cover 60% of their preorders. Amazon recently announced they wont be accepting any preorders for the PS3 and cant guarantee theyll have any before 2007.

So why is there a shortage of the Playstation 3 items anyway?

It all goes back to Sonys decision to include their new high definition video format Blu-ray. The drive will allow for high definition gaming as well as allow PS3 owners to watch Blu-ray movies. The PS3 will be the cheapest Blu-ray player on the market by far as well due to the fact that Sony is absorbing a few hundred dollar loss on each system sold.

The problem with the Blu-ray drive is that making the blue laser diode needed for manufacturing the drive is proving notoriously difficult to manufacture. The two plants producing the diode, one owned by Sony, are...

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