Analyst David Gibson from Macquarie Equities reports that the PlayStation 3 experienced some overheating during the Tokyo Game Show event.

“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.”

It’s perfectly understandable that consoles (and general hardware) will overheat if there is poor ventilation, which is common during trade shows. Sony responded by saying “for a normal player at home, there shouldn’t be any problem.”, but apparently the analysts didn’t quite get it; the Sony share dropped 2.75% today.

Read (BusinessWeek)