Sony Delays PlayStation Vita, But It's Not Curtains for the Handheld

Technology Damon Brown 06/08/2011

Sony (SNE) dropped some bad news: Its highly-anticipated PlayStation Vita mobile game system won't be out this holiday season. Japan may get it by the end of the year, but the Americas and Europe won't be served until early 2012.

At first glance, the news looks all bad. Sony has been in steady third-place in the console race between the PlayStation 3, the Nintendo (NTYDO) and Microsoft (MSFT) XBox 360. It also has had a series of flops with the latest PlayStation Portables.

But, the PlayStation Vita delay isn't the end of the world for Sony. Here's why.

Its biggest competition, the Nintendo 3DS, is failing
The biggest mobile competition is the Nintendo 3DS. From the GameBoy to the DS, Nintendo's handhelds have traditionally trounced Sony's mobile consoles. Its new 3D console came out in the spring - and gave Nintendo its biggest bomb since the Virtual Boy. Along with saying that its profits are down fifty percent, Nintendo announced last week that it is slashing the 3DS price and giving free software to current owners.

In other words, Sony just got lucky. By overpricing and under-delivering the 3DS, Nintendo has given Sony a few more months of reprieve. Sony doesn't have to worry that Nintendo will take over the market before Vita is released.

Sony's other handhelds will have time to thrive
Believe it or not, Sony just released a device very similar to the PlayStation Vita: the Xperia Play. While Sony Computer Entertainment's PlayStation Vita is a game machine that can make phone calls, Sony Ericsson's Xperia Play is a cell phone that can play console-level video games. Got it? Back in February I argued that consumers wouldn't get it, with the two similar Sony devices washing each other out. It was another case of Sony's siloed development where teams don't find out what the other teams are doing.

Regardless, the PlayStation Vita delay helps the two competing devices in several ways:

  • Consumers can actual invest time and money into the Xperia Play
  • The Xperia Play will be old news by Spring 2012, giving Vita a bigger part of the spotlight
  • Developers won't have to split resources between the two devices
  • Sony has more time to establish the differences between the two mobiles
Is the delay a good thing? I wouldn't go that far, but a hobbled Nintendo and an additional handheld mean Sony isn't out of the game just yet.

Photo courtesy of Sony
Related:

  • Sony vs. Sony: It's PlayStation Phone and Its Mobile PlayStation Go Head On
  • Nintendo Sales Fall by Half: Two Ways It Can Turn This Mess Around
  • Nintendo: Here's the Wii 2... Just Wait a Year! Oh, BTW, Profits Are Way Down
  • Nintendo and Sony Still Don't Get It; Apple's Already Crushing Them in Gaming

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