In another setback, Sony delays PS3 'Home' product

What can go wrong, will go wrong. Sony (NYSE: SNE) is proving that the old maxim is true. In an attempt to regain market share from Microsoft (NASDAQ: MSFT) Xbox 360 and the Nintendo Wii, the Japanese consumer electronics giant had planned to launch an online virtual community based on its game console.

According to Reuters, "The 3D 'Home' online service, in which players can create and 'own' characters and content, was originally scheduled for launch this autumn." The launch has now been pushed to early 2008.

Sony has done almost everything it can to allow its rivals to take market share. PS3 sales now lag XBox 360 and Wii numbers every month. The Wii has become a huge global hit, due to its low price and ease of use for consumers who are not hardcore "gamers." The PS3 is also more expensive than Xbox, which is getting a sales push from the launch of the new version of its popular "Halo" game.

Playstation was once Sony's crown jewel. The PS2 was the leading game console for a number of years, but when it came to launching an upgraded product, Sony was late to market. Microsoft has been willing to lose money in its game device business, hoping that it will eventually turn profitable if it can get a large enough piece of global sales of game consoles.

With this setback for Sony, and recent warranty problems with Xbox that caused Microsoft to take a charge slightly over $1 billion, it appears that the market is being handed to Nintendo. At least its product works.

Douglas A. McIntyre is a partner at 247wallst.com.