Is Sony's Game Over?

Sony's launch of the PS3 gets delayed further with each article I read. New reports have it slated for Late 06 or early 07. XBox 360 already created a huge lead by launching before Christmas and Sony falls further behind with every passing day. By the time they launch the PS3 it may be obsolete. Reports also say it may cost Sony $900 to produce, that means even with lower shelf prices on the units, games will be expensive for a long time for Sony to make up their losses. Besides disappointing potential customers, Sony is taking a beating in the press. That's sucky marketing synergy.