Sony predicts it will lose $172 million due to PSN cyber attack

Sony announced today that it expects it will take a $172 million loss due to the cyber attack that caused the shut down of the company's console Playstation Network online service. The announcement came as part of an overall financial update for the company ahead of its official results. Sony is now predicting that it will take a $3.2 billion loss for its fiscal year that ended on March 31. The loss was due mainly to Sony taking a one time charge because of GAAP (generally accepted accounting practices) rules here in the US.

The $172 million charge for the Playstation Network shutdown will be put into Sony's current fiscal year that started on April 1 and will end on March 31, 2012. However, the massive earthquake and tsunami that struck last March didn't greatly affect the company's overall global finances (it occurred three weeks before its fiscal year ended) but it did push its Japan-based operations to a new loss for the fiscal year. Sony will release its official financial results for the year on Thursday.

The $172 million loss due to the Playstation Network shutdown actually seems small, especially since PSN has yet to be restored in Japan and other Asian countries. In addition, the Playstation Store has yet to be restored worldwide. The online store gets revenue via downloads of games, movies and TV shows and it's been down now for over a month, although online rumors have the store as being put back online later this week. We think that Sony will certainly have to revise its Playstation Network losses upward in the months ahead.

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25 Comments

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The real question is, how hard will their customer base be hit? I mean a lot of people are fed up and have abandoned Sony. Will they be able to keep the remaining customers and draw in new ones to replace the ones who left? Or this the beginning of the end of Sony? Only time will tell. That is my 2 cents take with a grain of salt.

How many times have they been busted for price fixing and got a slap on the wrist? Small potatoes to sony.You reap what you sow.

Serves them right.
Learn to encrypt the Password database field, make better movies, and stop releasing crappy songs. Oh, and install a firewall.

UndergroundWire said,
And who said Anonymous couldn't hurt them?

They severely underestimated the power of hackers.
Millions of dollars in lost revenue - now look who's having the last laugh.

Tom said,
Have to say I expected it to be MUCH more.

The real figure may be much more, could be telling the truth, could be lying, who noes

Tom said,
Have to say I expected it to be MUCH more.

I'm not a fan of the PS but this kind of news doesn't benefit anyone. It could have been worse though

Tom said,
Have to say I expected it to be MUCH more.

No doubt that it is much higher. It's just fancy accounting on Sony's part.

Tom said,
Have to say I expected it to be MUCH more.

Me too. And it probanly is. This is probably a very conservative figure before they release their financial results...

CarlDilone said,
This is really bad!

Bad? This is just $172 mil for Sony. Network went down in many countries, many publishers didnt release new games.... the number should be much higher.

CarlDilone said,
This is really bad!

Not as bad as not being able to catch the culprits that did them the damage in the first place.