Sony announced today that its long awaited handheld gaming console, the PSP, will be delayed until 2005 outside of Japan. The company states that it needs more time to develop the gaming software needed for the console.

The PSP is, in effect, a handheld PlayStation. Although Sony has ensured that the console will be released in Japan this year, analysts are doubtful. One said "It will be a huge struggle to get something out by Christmas."

Sony shares dropped at the news. Sony America has said that the company is now looking at March 2005 for a launch there, and an early 2005 launch for Europe.