Sony boss Ken Kutaragi has expressed further regret over last week's news that the PlayStation 3 will be delayed in Europe until March 2007, apparently admitting to news agency Reuters that Sony's strength in hardware is in decline.

The man known as the father of PlayStation apparently told reporters, "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."

It's certainly a surprising admission if the quote is genuine and it certainly appears to be as it's been widely reported. However, as is so often the case, it should be taken in context and in this case, there's no more context than the raw quote to examine.

Kutaragi is undoubtedly right in some senses as PlayStation hardware is in decline, facing an extremely serious challenge from Microsoft and to a lesser extent Nintendo for the hearts and minds of gamers in the next generation - a challenge it didn't have to deal with during the launch of the PS2. The delay to the PS3 in Europe has been a major blow, given Microsoft more or less managed a full global launch of its own last year and the Redmond giant now has a chance to cash in on the lucrative European Christmas market this winter.

Perhaps Kutaragi's qualifier of 'right now' might be the crucial phrase in that quote, suggesting more optimistic times are on the way. Kutaragi could also be referring to the general challenges Sony faces in all hardware markets, including TVs and consumer goods where the Japanese electronics giant is also under attack from new challengers.

But whether that means a decline in PlayStation hardware overall, we're not so convinced, as we still see PlayStation 3 being a major success when it does eventually launch in Europe, although it will also undoubtedly yield some significant market share to both 360 and Wii. We're sure you won't be afraid to share your thoughts on Kutaragi's statement in the comments field below.