PSN outage will cost Sony $171.1 million, earthquake bill $1.8 billion
Sony reveals three-week PlayStation Network outage and massive natural disaster will cut deep into FY 2012 revenues; FY 2011 estimates revised downward.
During the three-week PlayStation Network outage, various estimates of its cost to Sony were thrown around. Today, the company revealed what it believes will be the final bill it must pay over the outage: ¥14 billion, or $171.1 million. The cost will be incurred in Sony's current fiscal year, which ends on March 31, 2012.
Sony also gave an estimate for the losses it expects to incur as a result of the Great East Japan Earthquake of March 11, 2011, and the resulting tsunami. The massive natural disaster is expected to cost Sony a whopping ¥150 billion ($1.83 billion) during the 2012 fiscal year. For the fiscal year that ended March 31, 2011, the cost will be ¥17 billion ($207.8 million).
Sony will report the results from its 2011 fiscal year this Thursday, May 26. Today, it revised projections for those earnings downwards 0.3 percent to ¥7.18 trillion ($87.7 billion), with a net loss of ¥260 billion ($3.18 billion) expected for the full fiscal year. Previously, the company had predicted an annual net profit of ¥70 billion ($855 million) on revenues of 7.2 trillion ($88.0 billion). The shortcoming is a result of a ¥360 billion ($4.4 billion) charge related to deferred tax assets in Japan.
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