Sony Estimates $171M in Losses from PlayStation Network Outage, More from Earthquake

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Sony (www.sony.com) is tallying up its losses after the month-long outage of its PlayStation Network, and executives estimate the downtime will cost the company at least $171 million, according to a report by Register.

After a breach in April, approximately 100 million users of the Sony PlayStation Network had their personal information compromised. It wasn’t until mid-May that Sony began service restoration. The company expects to be fully restored by May 31.

Sony told investors that it has not received any confirmed reports of identity theft issues, or any misuse of credit cards. If these variables change the costs could fluxuate, according to Sony.

The $171 million will cover the costs associated with rebuilding the infrastructure and paying for credit protection services and compensation for its users.

According to a report by the Los Angeles Times, the estimate does not include potential liabilities resulting from lawsuits. Early May, a proposed class action lawsuit was filed against Sony on behalf of one million Canadian PlayStation and Qriocity users for breach of privacy and negligence.

According to the report, Sony said the effects of the March earthquake in Japan will be about $268.9 million, making its loss for the fiscal year that ended on March 31 approximately $3.18 billion. Sony said it would have to take a non-cash charge of about $4.4 billion for its fiscal year for deferring tax credits in Japan.

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