Sony shares feel the heat

October 3rd, 2006, 22:19 Posted By: wraggster

Recent concerns about PS3's imminent launch and the stability of the console's hardware have caused Sony shares to drop 2.75 percent, according to a report on The Associated Press.

First up, in a report released yesterday, Macquarie Equities analyst David Gibson stated that PS3 units had to be reset frequently at this year's Tokyo Game Show, pointing the finger at overheating.

Sony, of course, has denied hardware issues with PS3 exist, with company spokesperson Nanako Kato saying the TGS phenomenon was likely caused by one-of-a-kind temperature irregularities, according to The AP.

Meanwhile, Goldman Sachs Group Inc. (investment firm), chose to drop Sony's stock rating earlier today from 'buy' to 'neutral'. The reason? 1) confusion over PS3's release and 2) poor PSP sales may have a greater impact on Sony's earnings than expected.

As a result of all this, Sony's shares fell $1.11 on the Tokyo Stock Exchange to $38.98.

What will concern gamers though is the TGS 'overheating' matter. Should we be worried? Clarifying Sony's position on the issue, Nanako Kato said that roughly 200 PS3 units were positioned closely together and situated in kiosks with poor ventilation, which resulted in overheating problems.

"It's not a problem with the PlayStation 3 unit itself," Kato maintained. "For a normal player at home, there shouldn't be any problem."

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