PS3 So Hot Sony Stock Drops 2.75%
Reeling from several PS3 delays and a whole mess o’ bad PR, Sony really doesn’t need this – a report released last Monday by Macquarie Equities analyst David Gibson, despairing over the erratic behavior of PS3 units on display at the Tokyo Game Show:
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… We are concerned that such a problem has occurred so close to full production and is clearly negative news for the company.
Anyone have a guess as to Sony’s reply?
Reeling from several PS3 delays and a whole mess o’ bad PR, Sony really doesn’t need this – a report released last Monday by Macquarie Equities analyst David Gibson, despairing over the erratic behavior of PS3 units on display at the Tokyo Game Show:
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… We are concerned that such a problem has occurred so close to full production and is clearly negative news for the company.
Anyone have a guess as to Sony’s reply?
Denying that there was any technical problem with the PS3 didn’t stop Sony’s stock from dropping by almost 3%, nor did it keep Goldman Sachs from lowering Sony shares from “buy” to “neutral.” Sony claims (perhaps rightly so) that if the units overheated it was because of “one-of-a-kind temperature irregularities” resulting from housing the units close together in poorly ventilated kiosks, and that problems from such conditions are common at trade shows.
I actually buy that, it just doesn’t stop the train, if you know what I mean. Sony’s built up such a wealth of bad press that even the most understandable snafu only serves to tarnish its image and make its leadership look absurd. If Sony doesn’t stop talking a whole lot of crazy, there are bound to be more repercussions. Microsoft shrugged off similar overheating concerns with the Xbox 360, but Sony’s in hardly the same shape as the big M was at the time. Sony needs good press and she needs it now, and unfortunately the sudden concern for its customers’ wallets rings a little hollow.
Shape up, big girl; you gotta lot of work to do.
Via businessweek
tiny dancer
Posted to Video Games on 4 October 2006
· Comments (2)
Other stuff like this: overheat, ps3, sony
Sony: I DON’T CARE OLOL
I think that’s the stupidest reason for stocks to drop, in all honesty.