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]

Sony Ericsson Xperia Neo Delayed Till Q3

The unfortunate tragedies that have recently struck Japan have not been limited to just the people of the country. As more damages begin to get assessed, many of Japan’s largest companies like Sony and Toyota are finding out that their facilities were more damaged then they previously thought which is leading to product delays and slow rollouts. On top of that, even if a companies own facilities were not harmed by the earthquake and tsunami, but a partnering supply companies was, this will still lead to product delays as companies are finding it harder and harder to get their hands on key components like batteries. Because of these “supply chain disruptions”, Sony Ericsson has announced that their Gingerbread based, Xperia Neo is receiving the bump and will instead now be launching in July as the company tried to find a consistent supply chain in order to have a proper product launch.

As Sony Ericsson continues to assess the impact of the situation in Japan on its business, we have communicated to our operator customers and distributors that some volume of Xperia arc, Xperia PLAY and Xperia neo phones has been affected. Xperia neo has already been introduced to the marketplace in limited quantities. However, due to supply chain disruptions resulting from the situation in Japan, we have shifted the timing of Xperianeo’s broader launch and it is now planned for early Q3.

We will address this topic at the time of our Q1 financial results announcement call that is scheduled for April 19, 2011.

[Via Sony Ericsson Italy Facebook]

Live Blogging From Sony’s VIP Reception Event (updated)

A little over a week ago, we were invited to a VIP reception event that will take place today at a Sony Style store in Santa Monica. Though we weren’t given much information to go off of, we can confirm that the event will help kick off a new vision for Sony and their retail initiative, bringing a store that is set to be very different from the current stores. Sony will also take this time to highlight and update us on what is happening in Japan. For this event, Sony has also invited some celebrities which will not only add some glamour to the night, but will also help bring attention to a few charities that Sony hopes people will contribute to. The event is set to kick off at 6pm (PT) tonight, which I will be covering and live blogging from. So feel free to bookmark this page and follow our live blog as it happens after the jump, or follow our Twitter feed.

Update:
We’ll be bringing a lot more tomorrow. Our live blog didnt go quite as planned. The scene was a little too hectic to pull out the iPad and post with.

Sony Ericsson Supplies to be Affected by Japanese Earthquake and Tsunami Disaster

There isn’t a whole lot of details about this but Sony Ericsson has issued a statement, indicating that the companies supply chain will be affected by the recent natural disasters that have struck the people of Japan. Sony has also shut down another 6 plants in Japan, due to damage. We don’t know how immediate of an disruption this will have on the companies new set of Android handsets that will be launching in the Spring.

“Although the full impact of the current situation on our business will take additional time to assess, Sony Ericsson anticipates disruption to its supply chain operations,” the company, owned by Ericsson and Sony Corp., said in a statement. “As part of our business continuity plan, we are in contact with all our key suppliers in the region and we are identifying the possible relocation of certain component manufacturing, and looking at secondary sources of supply.”

[Via Reuters]

Sony Puts Country Before Profits, Cancels MotorStorm Apocalypse for Japan

By now, we have all have seen the countless images and videos on CNN and other places from the recent natural disasters that took place in Japan. With cities destroyed and the country’s spirits and energies going towards their people and the much needed recovery that is taking place as each day passes, it’s nice to see a company set aside its profits and instead focus on the people. In an alternative universe where a 8.9 earthquake and tsunami had not rocked the country of Japan, this week Sony’s PlayStation division would be releasing MotorStorm Apocalypse for the PlayStation 3. This genre-defining racing game has always been centered around all forms of jaw-dropping environments where the player can race, crash and taunt away the opponents in all forms of manors. Prior to this installment, the series had raced into the deserts and tropical landscapes for the game’s backdrop. For MotorStorm Apocalypse, the developers wanted to instead focus on an old abandoned city where the environment itself played like an opponent. With falling buildings and destroyed streets, the game was a spectacle to look at and play through, if you had not recently been exposed to a trauma of the same magnitude. Sony instead believes that the game will hit too close to home and will not be appropriate for the people of Japan and through an email issued out to the press, has stated that the game will be postponed (indefinitely) for Japan. From a capitalistic standpoint, this might not be a good move. After all, millions are/were spent on making this game, let alone localizing it for Japan, but from a humanity standpoint, it’s nice to see a company forgo profits and instead focus on the people.

We’ve Set Up a Japan Tsunami Relief Site (updated)

My heart really goes out to all of our friends and the people of Japan and though I might not be able to physically help the great people of that country, I thought to myself that I might be able to help them virtually. I’ve set up the following site:

2011 Japan Tsunami Relief

I encourage you and ask others to use this website and spread word about this site. The singular goal of this website is to create a destination where people can find information (i.e. Red Cross, People Finder, etc.) and post any information they want through us and report missing persons with contact information which we will post again on your behalf. If you would like to help out with this initiative, I’m extremely open to suggestions and any help and welcome them.

Updated:

We’ve just updated that post with a proper email and soon a news feed!

Sony Closes Japanese Factories Due to Tsunami and Earthquakes

First and foremost, before we get into any news, I want to extend deep and heartfelt love and support to the people of Japan and any others who might be affected by this recent and devastating tsunami and earthquake. Our very own editor, Allegra Wilson, resides in Honolulu, HI where they had a scare throughout the night, though luckily not much happened there. Sony of Japan has announced that due to the recent natural disasters and potential damages done, six of their Northern Japan plants that are in charge of the company’s Blu-ray discs, magnetic heads, and battery productions have closed down for the time being. Yasuhiro Okada, a spokesman at the Tokyo-based company said that,

the company was assessing the impact of power outages and damage to its facilities in the region

[Via Bloomberg]