PSN Intrusion Could Cost Sony Billions

Let’s be honest, we knew that repairing the damage hackers caused to PSN wasn’t going to be cheap. Many originally assumed that the network was only going to be down for about a weeks time.

Once word got out about how severe the damage was, we knew many Sony execs had a lump in their throat. Now financial analysts are asserting that those same execs will also feel some significant pain in their wallets.

Even for a company with deep pockets like Sony, the cost of repairing consumer confidence is nothing they can just shake off. While a significant portion of the money will be spent keeping consumers and investors happy – another chunk could go to companies that were affected and lost millions in revenue due to the outage.

It was originally estimated that this ordeal could cost the Japanese company tens of billions. Now analyst are estimating that the number is a lot lower, between $1.25 and $2.75 billion dollars, which is still nothing to scoff at.

When talking to WSJ, Nobuo Kurahashi of Mizuho Investors stated:

“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.”

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Paying for the investigation and updating PSN security is going to cost some serious coin, though giving consumers incentives to return with a peace of mind is also going to cost Sony in the long run. Sony has yet to come out with the exact numbers on how much all of this will cost (and who knows if they ever will), but you can be sure that investors will be very eager – or not so eager – to see the company’s financial reports at the end of the month.

Each day PSN is down, the higher the bill goes. Let’s hope we don’t have to wait too much longer.

Follow Dwayne Holder on Twitter @Dwayne236

Source: Wall Street Journal via Business Insider

tags: PS3, PSN, Sony