Glide Underground

Sony: Hack costs $170M

Articles / Playstation2/Sony
Date: May 23, 2011 - 11:00 AM
Sony says the hacking of their various servers will cost them $170 Million on this year's balance sheet.

Probably that doesn't cover the restitution to PS3 owners and the loss of goodwill by the customer base.

Sony said it made the announcement because it expects to record a net loss of ?260 billion for the financial year just ended due to charges associated with U.S. GAAP (generally accepted accounting practices) rules.

The March 11 earthquake and tsunami occurred just three weeks before the end of the financial year and didn't have a large impact on the company's global financial performance for the year, but it did push Sony's Japanese operations into a loss.

Those Japanese operations had lost money the previous two years but Sony, anticipating a profit in the year just ended, had recorded tax credits it intended to carry forward. However, GAAP rules say tax credits cannot be recorded for three years in a row, so Sony is recording a non-cash charge for the credits it had taken.

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