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Sony Corp. has postponed the Chinese launch of its PlayStation 2, blaming an "unfavorable environment" for the delay.

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A statement posted on the company's Chinese-language Web site didn't elaborate on the decision or set a new launch date.

Sony and other game makers such as Nintendo have been wary of launching products in mainland China, despite huge potential demand, largely because of fears of piracy.

There have also been reports suggesting that PlayStation 2's advanced computer chips and graphics functions might have military applications that would preclude export to China under U.S. and Japanese law.

Kenichi Fukunaga, a spokesman at Sony headquarters in Tokyo, said the company simply had not prepared in time for the China launch. He wouldn't comment further.

Although plans to bring the latest PlayStation to the Chinese market remain up in the air, Sony manufactures the first version of the popular console in China and has announced it plans to shift production of PlayStation 2 consoles to the mainland as well.

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