Playstation Network Down Update: Sony Counts The Cost [Sony's Playstation Network Outage Reportedly Costs $171 Million, Estimates A $3.2 Billion Loss On The Year]

Posted on TFTS by Steve Anderson on Monday, 23. May 2011 under: Computer/Console Gaming

Well folks, it seems to be finally over…the long Playstation Network outage, which has been going on and yielding news for a little better than a month now, seems to be wrapping up. And in that wrapping up, Sony has announced a few numbers that are large, scary…and all negative for Sony.

The reported cost of the Playstation Network outage is now being measured at $171 million, and they further expect losses for the rest of the year to approach $3.2 billion. The damages are being pinned not only on the ongoing troubles with the Playstation Network, but also the massive damage trifecta–earthquake, tsunami, nuclear meltdown–that slammed into Japan earlier this year, damaging a variety of fixed assets belonging to Sony. Plus no one’s all that sure just how much more damage will be done as the result of further natural disaster-related incidents or what will happen if the lawyers suddenly get involved on the Playstation Network issues, which has already happened in some cases and may only get worse.

The phrase “ongoing disaster” seems somehow insufficient to cover just what’s going on here, and considering the numbers that are being bandied around here, show just what’s at stake in terms of not only Sony, but also for the video game industry in general. This has been a terrible year for Sony, and hopefully things will improve in short order or we’re going to be down a significant portion of the entire industry. Perhaps the worst part is, prior to the Playstation Network issues and the earthquake and its attendant issues, Sony was forecasting a profitable year, set to bring in about $855 million in profit for the year, but losing all of that and then some–like about four times’ worth of and then some–on the various disasters.

Do you guys think Sony can recover? I’d say it’s a good bet, myself–they took a whole lot of damage but have a good-sized user base–but it’s certainly not a foregone conclusion as yet. Say your say on Sony down in the comments section below.

Keith
I’ve been loyal to Sony since Playstation came out so many years ago, or so it seems. I was a bit troubled by the news about the Playstation Network security breach and the potential of millions of lives turned upside down. This kind of thing happens and I certainly hope that the individuals keeping the Sony name alive, the other loyal customers around the world, don’t hold this against Sony too much. It is more unfortunate that words can say about the impact the earthquake had on the gaming industry as a whole but lets not diminish the situation and remember that the impact on Japan as a whole outweighs any temporary setback that faces any one single company. That being said, I fully believe that Sony will continue to provide the best experience on earth for gamers. They’ve overcome aversity before and will again. As the saying goes, what doesn’t kill you makes you stronger.
Dherasingh
I’m pissed, I have an account with sony playstation3 my credit card info was provided and to boot, I have money in my acount. I can’t get on to check it and don’t know if it will be there when they bring the network back up. I will sue if problem is not fixed!!!!. Like so many I have been a loyal customer for many years and hope to continue to support sony,however if the postion of sony is to shut out it’s loyal paying custumers. I fear the back lash will cripple sony’s abilitys to hold on to the confidence of it’s customers in all markets I also have other sony products camcorder, two psp’s, two playstations3 and hundreds of game’s, playstation plus acounts ps1 ps2. P.S, one more problem is my friends have playstations3 and there accounts are fine because they have not givin there credit card info or bought from the playstation store. can you anwser that?
DrSteve-o
Sony is the best and I forgive ! The alternative of a Sony free world is just too scary to consider (xbox)
…sikdamon…
The online-gameplay outage has been frustrating for me, let alone million’s of others. If this whole disaster has pointed out the security flaws the network should have taken more seriously before, and results in a more secure infrastructure, then so be it! It probably would’ve happened sooner or later. There will be consequences for Sony whether it be lawsuits and/or billions of money lost…hopefully charging for online-gaming and other services, Xbox for example, isn’t imminent!
http://nexus404.com/Blog Steve Andersen
Seems like you guys all feel pretty good about Sony’s chances in the not too distant future. That’s a pretty good sign especially if everybody agrees with you.