PS3 made very poor impression at Tokyo Game Show - shares fell immediately

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http://news.yahoo.com/s/ap/20061003...JhRo_us0NUE;_ylu=X3oDMTA3bGI2aDNqBHNlYwM3NDk-

Sony shares fall on PlayStation concerns

By HANS GREIMEL, Associated Press WriterTue Oct 3, 5:35 AM ET

Fresh concerns about the upcoming release of Sony's much-anticipated PlayStation 3 video game console and reports of erratic performance dragged Sony shares down 2.75 percent Tuesday.

Technical problems for the PlayStation 3 would be the latest embarrassment for Sony, which has already had to twice delay the product's launch, and is facing stepped up competition from rivals Microsoft and Nintendo.

Sony has also been hit by the recent string of recalls for its lithium ion batteries for laptop computers.

PlayStation 3 units on display at the Tokyo Game Show about 10 days ago operated erratically and had to be repeatedly reset, according to a report released Monday by Macquarie Equities analyst David Gibson in Tokyo.

"While the reason for this is unknown, we suspect it may be due to overheating as a result of enclosing the units and the high temperatures at the venue," Gibson wrote. "We are concerned that such a problem has occurred so close to full production and is clearly negative news for the company."

Sony denied that there was any technical problem with the PlayStation 3.

Earlier in the day, investment firm Goldman Sachs Group Inc. lowered Sony's stock rating to "neutral" from "buy," citing confusion over the release of PlayStation 3 and concerns that disappointing sales of PlayStation Portable may weigh on its earnings in electronics operations more heavily than expected.

Sony's stock tumbled 130 yen ($1.11), or 2.75 percent, to 4,600 yen ($38.98) on the Tokyo Stock Exchange.

The PlayStation 3 will hit stores in Japan on Nov. 11 and in the United States on Nov. 17. In Europe, they won't go on sale until March, four months later than planned.

Sony spokeswoman Nanako Kato said any problems at the Tokyo Game Show, where Sony, Microsoft and Nintendo showed off rival offerings under the same roof, were likely caused by one-of-a-kind temperature irregularities.

About 200 PlayStation 3 units were clustered together in close proximity and housed in kiosks that concentrated the heat generated by their processors and provided poor ventilation, Kato said. Overheating under such circumstances is a common affliction at trade shows, afflicting not just Sony products but those of its competitors, she said.

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

Sony is sticking to its plans to ship 2 million PlayStation 3 units by year's end and 6 million by March 31, 2007, she said.

Redmond, Wash.-based Microsoft Corp. rushed its next-generation Xbox 360 to Japanese markets last year to get a head start on its rivals, but it has seen sluggish sales in Japan, which is one of the world's biggest video game markets but one in which players have a deep loyalty to homegrown Sony.

Nintendo Co. meanwhile is planning to launch its new Wii game console in the final quarter of the year and price it below both rivals, the Xbox 360 and the PlayStation 3.
 
" Sony spokeswoman Nanako Kato said any problems at the Tokyo Game Show, where Sony, Microsoft and Nintendo showed off rival offerings under the same roof, were likely caused by one-of-a-kind temperature irregularities."


One of a kind temperature irregularities, that's what they calling poor design now
 
minorthr said:
" Sony spokeswoman Nanako Kato said any problems at the Tokyo Game Show, where Sony, Microsoft and Nintendo showed off rival offerings under the same roof, were likely caused by one-of-a-kind temperature irregularities."


One of a kind temperature irregularities, that's what they calling poor design now


I can see the insert now into the manual:
Do not install the unit in an entertainment center (Even though we want you to use this as your primary Blu-Ray drive).
Do not place unit on a carpet, so proper air flow can get to the unit...
Install a dedicated air-conditioner just for the PS3

What was the room over 100 degrees or something?
How abnormal warm is the room compared to someones home or dorm room?
 

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