At a hastily organised press conference last week with Reuters and other selected press, Sony Computer Entertainment President Ken Kutaragi made this fairly shocking and brutally honest statement; "If you asked me if Sony's strength in hardware was in decline, right now I guess I would have to say that might be true."
This rare bit of hands-up honesty from Sony was of course following the potentially disastrous announcement regarding the
PS3 European launch date slipping to March 2007 and is hot on the heels of a product recall involving millions of Sony-made laptop batteries.
On the issue of the battery recall, Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management told Reuters; "All of this has raised concerns about whether there is something fundamentally wrong with Sony's manufacturing process, and it could further damage the Sony brand."
With investor confidence dropping to perhaps an all-time low, Sony really needs to focus on getting those PS3s assembled and working - with no glitches or disk scratching - and up its PR game in order to win back favour amongst European gamers.