Sony has given a revised forecast for their fiscal year today, adding a large loss resulting from the earthquake and tsunami tragedy in Japan and the security breach of the PlayStation Network.
The company says the PSN breach will cost Sony $171.1 million and the earthquake will cost them a devastating $1.8 billion.
PSN costs were mainly attributed to the cost of the free 1-year of ID theft protection the company is offering all affected, as well as the free games/PlayStation Plus and customer support costs.
Adds Sony (via Gamasutra):
So far, we have not received any confirmed reports of customer identity theft issues, nor confirmed any misuse of credit cards from the cyber-attack. Those are key variables, and if that changes, the costs could change.
In addition, in connection with the data breach, class action lawsuits have been filed against Sony and certain of its subsidiaries and regulatory inquiries have begun; however, those are all at a preliminary stage, so we are not able to include the possible outcome of any of them in our results forecast for the fiscal year ending March 2012 at this moment.
Overall, thanks to the earthquake and the PSN issues, Sony says its fiscal year, ended in March 2011, will be revised down to a $3.2 billion loss from an $858.5 million profit.
Sony did say, however, that the earthquake will not affect the release of the NGP (PSP 2) and that the PlayStation Store would be available again this week.
Result for: class action lawsuit
AT&T has settled a class action lawsuit today that will mean that the carrier must unlock all phones locked to their network as long as customers meet a certain set of criteria.
Users of pre-paid phones must “provide proof of purchase of their locked handset,” while any contracted user must have “completed a minimum of 90 days of active service,” with the account remaining in good standing.
There is one caveat, however: “Handsets for which AT&T has an exclusive sales arrangement with a manufacturer of less than 10 months will have to wait until the 10-month period expires before they can receive an unlocking code.”
That means that any phone for which AT&T has an exclusivity pact of over 10 months (namely the Apple iPhone and BlackBerry Bold 9000), then it does not have to issue an unlock code.
The final approval hearing for the settlement is on July 2nd. You can find more information at www.attlockinglawsuits.com.
Result for: class action lawsuit
In late April, Sony was sued in California over its recent firmware update that removed the “OtherOS” feature of the PlayStation 3, a feature that had allowed for the installation of Linux on an HDD partition.
This week, two more class action lawsuits have been filed against the company, one in Georgia and the other in California.
Both cases claim that Sony has made features consumers paid for “inoperable” with the release of firmware version 3.21. The firmware update is “voluntary,” but those that do not cannot sign into the PlayStation Network, or play their games online.
Both suits also state that Sony did not properly disclose that they reserved the right to remove built-in features, and that any removal of the “OtherOS” feature was not disclosed in the PS3 TOS, or SSLA (System Software License Agreement).
The second suit specifically says plaintiffs “lost money by purchasing a PS3 without receiving the benefit of their bargain because the product is not what it was claimed to be - a game console that would provide both the Other OS feature and gaming functions.”
The class action suits include anyone who purchased the PS3 console between November 17th, 2006 and March 27th, 2010.
