Kotaku is reporting that an inside source at Sony told them that Sony higher-up has approved the release of the PlayStation 3 for Fall 2006. They theorize Nintendo might end up fighting Sony as both try to release a new console at approximately the same time. If Nintendo wants to avoid that, they may need to rush their production.

If true, and this is by no means official, that means Nintendo will be doing exactly what it doesn’t want to do: Duking it out shoulder-to-shoulder with Sony for the hearts and minds of gamers everywhere.

Giving the Xbox 360 almost a full year on the market ahead of the other major players was probably not Sony and Nintendo's choice. With low production and incomplete backwards compatibility, it's clear Microsoft likely rushed to market. This is giving them a longer time to gain market share, but at the cost of a bumpy beginning.

PS3 Hits US This Holiday? [Kotaku]