Oy to the vey! In an interview with GameSpot, Sony Computer Entertainment America (SCEA) pres., Kaz Hirai, has admitted that production of the PS3 has not yet begun, even though launch is only about 3 months away. Despite this shocking announcement, Hirai asserts that Sony will have the 2 million consoles promised for launch in the three main territories (Japan, US, Europe) and that they will be able to manufacture 1 million per month after that. Judging from the quality of launch products from Sony, I'd be very wary of buying a launch console, especially since production will be rushed. That being said, I doubt that many people will be able to get their hands on a PS3 prior to Xmas anyway. Hirai didn't announce distribution plans, but my guess would be 1 million for Japan, 600,000 for the US and 400,000 for Europe. Some lotteries have better odds.

Meanwhile, there are reports that Nintendo has been manufacturing Wii's since July and that the price may be well under $200. I laugh at the Yankee Group and their extremely wrong prediction that the PS3 will win the console war!