As we all know, Toshiba recently roasted Sony about their BluRay media, and claimed it would bend and warp under heat expansion stress, potentially damaging the burner/reader.
More recently Sony came out as saying that their PS3 would only have 400,000 units in North America, and 100,000 units in Japan on their launch date, and Europe would no longer be included on that date.
Perhaps the worst news of the bunch is the rumours now circulating that Sony's famed "Giant Enemy Crabs" will in fact be only slightly larger then normal, and want to be your friends. Futher rumours report the real time weapon switching to be laggy, and as if that wasn't enough, the famed Ridge Racer is being renamed "Cliff Racer" due to MPEG 2 encoding problems with the BD-ROM based games. Apparently Ridge's just didn't come out looking right.
Sony enthusiasts have been reported to be excited about the new found Crab-a-gotchi's and look forward to taking their racing to the "cliffs". Other's however are not so optomistic...
More news as I make it up