Sony Delays Multimedia Handheld

The U.S. release of Sony's Playstation Portable (PSP), a multimedia handheld device, has been pushed back until March 2005.

Actually, it's hard to tell whether that's good news or bad news for Sony. Company executives told analysts this week that the delay came because it wants first and third party publishers to have time to develop a plethora of software titles.

However, it's just as likely that technology issues have cropped up, forcing engineers to go back to the drawing board. After all, the handheld gaming device is a significant leap forward in technology, offering MP3 and DVD video playback. It will likely open up a new marketing avenues as well, since entertainment companies can package different media together in one bundle.

When the PSP hits retail stores next year, gamers will suddenly have a dedicated, mobile entertainment device that they can take with them wherever they go. It becomes particularly powerful if it's WiFi-enabled, allowing people to connect to the Internet through wireless hotspots.

But all this depends on Sony engineers working out the kinks in the company labs. It may have to choose to scale back some of the grand plans for the PSP if the realities of deadlines and the bottom line loom too large.