Could the PS3 really be delayed until 2007?

The PS3 is delayed until 2007, the decision for this came about through the failure of the initial hardware the PS3 Development Team created. Apparently, 300 PS3 Units were created and sent to various software developers to begin creating games for the new system. However, design flaws in the PS3 (Specifically, not enough coolant) caused the systems to overheat and meltdown after moderate
use by the developers.

According to my DM (District Manager), Sony went and fired the entirety of the PS3 Development Team for this flaw. In short, from what I’ve heard, if Sony gained anything from this experience, it’s minor technical knowledge on what the PS3 can handle, but for the most part they were sent to square one.

Smacks of lets hype are new product to me, but what would I know.