PSN Outage and Japan Earthquake push Sony to massive losses

 

By Posted 23 May 2011, 14:38

Sony have been having a tough time of it lately with the much publicized PlayStation Network hacking coming not long after the natural disasters in Japan. Now we have news that the PSN outage and Japan Earthquake push Sony to massive loses.

Martyn Williams over at PCWorld is reporting that Sony has announced it expects the PSN hack to cost it $170 million this fiscal year. The company is to offer users in many countries a free year long identity theft insurance policy as well as free games as part of its Welcome Back Package. The cost includes all these issues together according to Sony’s CFO Masaru Kato.

Also See: New PS Store update time for UK today

These will be put into Sony’s current fiscal year that ends on March 31.The company expects to announce a record net loss of $3.2 billion for the fiscal year that has just ended and is due to charges with US GAAP.

The terrible events in March happened only three weeks before the end of the financial year so didn’t have much of an impact for Sony’s financial performance for that year. But the earthquake did make the company’s Japanese operations run at a loss.

Sony are set to report an operating profit of around ¥200 billion but it is the GAAAP charges which turn it into a loss. The earthquake and Tsunami resulted in Sony’s sales dropping by ¥22 billion with a further ¥17 billion in costs related to the disaster.