Cost of PSN Attack to Sony: 14 Billion Yen
Ahead of Sony’s 2011 FY financial results due to be released on the 26th May 2011, revisions have been announced to take into account a number of events have had a significant effect on Sony’s profits. One of the events that Sony details is the cost of the PSN breach that is estimated at 14 billion yen or 170 million USD to consolidated operating income. This is a hefty cost for Sony as 14 billion yen is 7% of their current 200 billion estimate for the operating income for the 2011FY.
The key variables that will affect the estimate are the severity and number of credit card misuses or identify theft cases. Sony points out that to date there have been no confirmed cases but if this changes the estimated amount will have to be revised. Other that the cost of the protection program for affected users, included in this estimate is the cost of the Welcome Back Program, customer support, security enhancements and legal. They also mention a possible revenue decrease which will affect profits as a result of this breach. Lost revenue can be attributable to the PSN store being down for almost a month as well as the effect on the sale of PS3’s and PS3 games.
This is a major blow for Sony’s gaming division which was on track for a strong year with the PS3 Slim selling well along with many high profile PS3 software releases.