Sony to Lose $3.2 Billion This Year, Due to Earthquakes and PSN Security Breach

As with all similar situations, with time passing, companies and investors can get a much better handle on the extend of damage dealt. This can be in both physical and financial impact and Sony has experienced both in a very short period. With massive earthquakes that rocked Japan during the month of March, Sony was forced to shut down factories, repair buildings and delay many products into the later part of this year. With extensive repair costs and missed product launches, this will cause Sony to report a $3.2 billion loss for the year. Sony was originally on a path for a ¥70 billion ($855 million) profit. The same holds true for Sony’s PlayStation division. Originally the division was going ahead at full steam with an announced profit predicted. Now, thanks to the month long PSN breach, the company has estimated a ¥14 billion (about $172 million) loss for that division. Of course, this is just the actual loss for the store being down and the costs that it took to create a more secure server. With lawsuits that always tend to follow, you can expect that number to rise. It’s expected that many other Japanese companies like Panasonic will also be reporting a loss for the year.

[Via Reuters]
[Source Sony]

2 Comments

Comments RSS TrackBack Identifier URI