Sony Data Breach Cost $171.1 Million, So Far

 
 
By Fahmida Y. Rashid  |  Posted 2011-05-23
 
 
 

Sony ended its fiscal year with one disaster - the devastating earthquake and tsunami that hit northeast Japan in March - and began the new one with another - a massive data breach in April. They both will have a significant impact on the company's bottom line, according to Sony.

Sony estimated May 23 that it will have spent $171.1 million so far this year in dealing with the April 16 security breach that compromised over 100 million user accounts on the PlayStation Network, Qriocity music and video service, and Sony Online Entertainment. The company has also been dealing with a host of other smaller attacks on other properties as hackers have a field day looking for new flaws.

The price tag included rebuilding its computers, paying for credit protection services for its customers and compensation to customers, including free products and services. The company did not include potential expenses that would accompany the lawsuits from customers in this figure. In comparison, the devastating March 11 earthquake and tsunami cost the company an estimated $208.5 million.

Sony's fiscal year ended March 31. Largely because of the earthquake, Sony said it would take a non-cash charge of about $4.4 billion for its fiscal year for deferring tax credits in Japan. The write-off wiped out the $1.2 billion in profit the company was expecting. Sony expects to report $3.2 billion net-loss on May 26 when it reports its quarterly and annual earnings.

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