I can see this delay both hurting and helping Sony. With the year after XBox release date, XBox may be considered "old technology" and a lot of people will rush to buy the newest thing, probably no matter what the cost.

I prefer Playstation, but I've never been the type to rush and purchase something just because it's the newest, coolest thing. I don't anticipate buying the new PS3 until well after the price reduces a good $100 or more. I'm completely content with my PS2.