Sony Corp roiled the consumer electronics and video game industries this week by pushing back the worldwide launch of its highly anticipated PlayStation 3 to November. The delay is more than just a bummer to video game enthusiasts; it virtually guarantees consumer confusion as Hollywood prepares to release the next generation of DVDs—in competing and incompatible formats. Problems with PlayStation may also hamper Sony’s corporate restructuring.

PlayStation is Sony’s most profitable product line and one of the most popular consumer electronics devices of the past decade, outselling Apple Computer Inc’s iconic iPod 5-1. The third iteration of the game console, initially expected this spring, is considered pivotal to the resurgence of the Japanese electronics and entertainment giant.

In addition to tapping the $25 billion global games market, PlayStation 3 will include Sony’s high-definition DVD format, called Blu-ray. The competition between Blu-ray and the rival standard, HD-DVD, recalls the format wars between Betamax and VHS in the 1980s. By pushing off PlayStation 3’s debut, Sony surrenders an early advantage in that race because high demand for the console was expected to put Blu-ray in more homes quickly.

But some analysts said the delay may actually help Sony by giving it time to stockpile consoles and avoid the retail shortages that plagued Microsoft last fall. The extra time also allows game developers to tweak their software, which is just as important to the machine’s success as its technical prowess. That strategy has paid off before. In 1995, when Sony entered the video game market with the original PlayStation, it was beaten to store shelves by game titan Sega Corp. Sony quickly became the industry leader and Sega quit the console business.

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