By Nathan Layne

TOKYO (Reuters) - It seems to be one thing after another for Sony Corp. (6758.T: Quote, NEWS, Research) these days.

After a recall involving millions of Sony-made personal computer batteries and yet another delay for the PlayStation 3 game console, even one of Sony' s top executives is questioning whether the company is on the right track.

" 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," game unit head Ken Kutaragi said after Sony pushed back the PS3' s European launch by four months to March.

The delay means Sony will miss the crucial Christmas shopping season in Europe, giving Microsoft Corp. (MSFT.O: Quote, Profile, Research) and Nintendo Co. (7974.OS: Quote, NEWS, Research) a head start in the race to win over next-generation gamers in key markets like Germany and Spain.

But for investors, the bigger worry is what the setback says about Sony' s reputation as a top-class manufacturer with the ability to deliver quality products to the market on time.