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Sony cautious on Playstation hack costs, as profits tumble

Sony has declined to quantify the full financial impact of the cyber attacks on its Playstation Network, but has acknowledged that it will incur costs.

Sony has declined to quantify the full financial impact of the cyber attacks on its Playstation Network, but has...

acknowledged that it will incur costs as a result of cleaning up after the hack.

The entertainment and electronics giant saw profits fall 70% in first quarter results due mainly to the Japanese earthquake, while profits at the company's European operation Sony Ericsson plunged into the red.

Sony's profits fell to $285m (£174m) in its first quarter ended June 30, while sales declined by 10%.

Mobile phone maker Sony Ericsson saw an overall loss of €43m (£37m), compared to profits of €25m for the same period last year. Sales dropped by 32% to €1.2bn.

The firm blamed a decrease in volume caused by a constrained supply of critical components as a result of the earthquake and a decline in the number of feature phones shipped as a result of a focus on smartphones.

Sony lowered its yearly profits forecast by 25% from the $1bn estimate it gave in May.

The company also acknowledged the effect of cyber attacks earlier this year but did not quantify the impact on its financial results.

The Playstation Network services that were shut down in April were restored in phases beginning in May, culminating in a full restoration on 6 July in all countries and regions where Sony provides the services, said the company in its statement.

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