PlayStation Network Crisis May Cost Sony Billions

By James Brightman

PlayStation Network’s breach is going to ultimately cost Sony billions of dollars, according to analysts. While the $24 billion estimate produced a few weeks back is likely hyperbolic, Japanese analysts are still placing the damage in the billions. 

Sony spokeswoman Kumie Tanaka said that the company doesn’t yet have any estimates of the impact on its earnings (to be reported later this month), but Sony is still examining the overall impact of the cyber-attack. Mizuho Investors Securities analyst Nobuo Kurahashi has estimated that the data breach will cost Sony about 100 billion Japanese yen ($1.25 billion) from lost business.

Not only is the company dealing with lost business, the costs of the investigation, covering the costs of reissuing credit cards, reinforcing security systems and offering complimentary access to premium services, but restoring consumer confidence will be a problem.”It could take months for the security woes to settle, and how this may affect consumer confidence in Sony’s online services in a long run is harder to assess,” Kurahasi told the Wall Street Journal.

Another analyst put the damage to Sony even higher. Barclays Capital analyst Yuji Fujimori estimated in a report published before Sony announced that more accounts were compromised that the overall impact of the data breach could be as much as 220 billion yen (about $2.74 billion).