PS3 is hot!

Maybe too hot.

Macquarie Equities analyst David Gibson claimed that PlayStation 3 units on display at the Tokyo Game Show late September operated erratically and had to be repeatedly reset.

Washington Post:

"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 in the report Monday. "We are concerned that such a problem has occurred so close to full production and is clearly negative news for the company."

the Inquirer:

But Sony denied that there was any technical problem with the PS3. It claimed that the problem was caused by the fact that more than 200 PS3s were clustered together in kiosks that concentrated the heat generated by their processors and provided poor ventilation.

Overheating is normal at trade shows, afflicting not just Sony products but those of its competitors. But the markets took Gibson's word and have downgraded Sony from a 'buy' to 'hold' rating so share prices fell.

Hat tip to Joe of the Pinehurst Thread for the links.