Sony reports losses from PSN hack

The major hack attack on the PlayStation Network and the devastating earthquake in Japan have led to losses in Sony’s preliminary results.

Losses

Sony has reported a 1.97 billion (260 billion) net loss for the end of the financial year, which the company has attributed to the combined disruption of the Japanese earthquake and the damage caused by the PSN hack.

The company is due to release a financial report on Thursday, but the preliminary announcement of the losses today signalled the severity of Sony's situation, as companies on the Tokyo stock exchange must notify investors quickly if they have reason to believe targets will be missed by 30 per cent or more.

Analysts previously predicted a 577 million profit, but instead the released figures represent the company's largest annual loss in 16 years and a drop for the third year in a row.

Sony's estimate for losses from the earthquake, made before the PSN hack occurred between 16 April and 19 April, suggested the company would lose around 1.1 billion, but since the attack hit, further analysis has been difficult.

Sony's chief executive, Sir Howard Stringer, speculated in broad terms on the negative effect the PSN hack would have on the company's finances and customer base, but no specific numbers were given out.

Sony has since invested in a new insurance scheme for PSN users, as well as the cost of repairing and upgrading its online networks. These outgoings, combined with the revenue lost during the extensive downtime following the attacks, form just part of the losses Sony is now facing.

Featured Resources

Four cyber security essentials that your board of directors wants to know

The insights to help you deliver what they need

Download now

Data: A resource much too valuable to leave unprotected

Protect your data to protect your company

Download now

Improving cyber security for remote working

13 recommendations for security from any location

Download now

Why CEOS should care about the move to SAP S/4HANA

And how they can accelerate business value

Download now

Recommended

Sopra Steria cyber attack costs to hit €50 million
Security

Sopra Steria cyber attack costs to hit €50 million

26 Nov 2020
Sophos warns customers of potential data leak
Security

Sophos warns customers of potential data leak

26 Nov 2020
Weekly threat roundup: VMware, GitHub, Facebook, and MobileIron
Security

Weekly threat roundup: VMware, GitHub, Facebook, and MobileIron

26 Nov 2020
Egregor ransomware could take up where Maze left off
Security

Egregor ransomware could take up where Maze left off

26 Nov 2020

Most Popular

80% of cyber professionals say the Computer Misuse Act is working against them
Security

80% of cyber professionals say the Computer Misuse Act is working against them

20 Nov 2020
Cisco acquires container security startup Banzai Cloud
Security

Cisco acquires container security startup Banzai Cloud

18 Nov 2020
Weekly threat roundup: Cisco, BlueKeep, Apache Unomi
Security

Weekly threat roundup: Cisco, BlueKeep, Apache Unomi

19 Nov 2020