May 23, 2011 12:26 pm EDT

Sony estimates $3.2b loss this year, $171 million cost for PSN breach

It has not been a good year for Sony, which was affected both by the massive earthquake in March and the PSN outage that spanned from April into May. There couldn't be any doubt that those things would have a drastic impact on the company's bottom-line, and it's now taking the time to give investors an idea of just how big an impact that could be -- even though the financial issues lie largely elsewhere. Sony is set to announce its full financial report for its fiscal year this Thursday and, to soften the blow, estimates have been revised steeply downward. Previously Sony predicted a ¥70 billion ($855 million) profit, but now thinks a ¥260 billion ($3.14 billion) loss is rather more accurate -- a ¥360 billion non-cash charge taking the wind out of ¥200 billion in operating income.

The earthquake was directly blamed for a loss of ¥22 billion, but that figure could certainly grow as this estimate is only through the end of March. Additionally, Sony has provided a early guess of a ¥14 billion (about $172 million) total cost for the PSN breach. That's less than two bucks per exposed account, but again we wouldn't be surprised if it's a figure that increases through the year. You know, once the lawyers start having their fun.

Sony estimates $3.2b loss this year, $171 million cost for PSN breach originally appeared on Engadget on Mon, 23 May 2011 08:26:00 EDT. Please see our terms for use of feeds.

PermalinkThe Wall Street Journal, gamesindustry.biz | Sony [PDF] ||Comments

Original Link: http://www.engadget.com/2011/05/23/sony-estimates-3-2b-loss-this-year-171-million-cost-for-psn-b/

View Full Article

Engadget

Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics. Engadget was launched in March of 2004 in partnership with the Weblogs, Inc. Network (WI

More About this Source Visit Engadget