According to published reports on Dow Jones Newswires, the recent data breach involving Sony Corp.’s online video game services has knocked more than 6% off the Japanese electronics maker’s shares, with some analysts estimating the incident could cost the company over a billion dollars as it takes steps to soothe and protect customers.
“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,” said Mizuho Investors Securities analyst Nobuo Kurahashi.
Kurahashi estimates that the data breach will cost Sony about Y100 billion, or $1.25 billion US from lost business, various compensation costs and new investments–assuming that no additional security problems emerge. The cyber attacks on Sony in recent weeks involved the theft of personal data that include names, passwords and addresses from accounts on its PlayStation Network and Sony Online Entertainment gaming services. Sony has also said that more than 10 million credit-card numbers may have been compromised.
Aside from lost revenue due to the suspension of the online services, Sony is covering the costs of reissuing credit cards, reinforcing security systems and offering complimentary access to premium services and products.
Source: Dow Jones Newswire
