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Rainbird said:
http://www.eurogamer.net/articles/sony-europe-comments-on-gt5-delay

Sony Europe has said that Gran Turismo 5's latest delay is "only applicable for the Japanese market", although the platform holder also declined to estimate when the game will be released.

"This information on the GT release is only applicable for the Japanese market," the company said in a statement to Eurogamer. "SCEE will announce the launch date for this game in the PAL territories in due course."

Sony Japan had announced a March 2010 release date for Gran Turismo 5 at the Tokyo Game Show last year, while SCEE had been a little more cautious, declining to confirm a date for the much-anticipated Polyphony Digital racer.

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Personally I think Sony could release it this summer and it would still compete with Natal/Reach/whatever just fine.

It is possible that they're simply delaying the game until Summer for Japan with plans to do a worldwide release, giving Kaz more time to polish the game while simultaneously working on the localization.  The ps3 has a great March in Japan already, between Yakuza 4 and Resonance of Fate, so might as well save it for the dry Summer season while also improving the game in preparation for its release in Europe, its most important region.

And I doubt they'd delay it to Fall in fear of Reach/Natal.  They're no more afraid of Reach than MS is afraid fo GT.  Might as well attack over Summer when MS has seemingly nothing that can compete.