Sony Expected To Post $3 Billion In Losses In FY2011

Sony revealed that they expect losses caused by last month's attacks on their PlayStation and PC gaming networks will go as high as $171 million.

But this figure pales in comparison to the companies losses caused by the recent earthquake in Japan, which Sony estimates could directly cost them as much as $268.9 million.

"Our supply chain was significantly damaged by the earthquake and tsunami," Sony chief financial officer Masaru Kato, PC Mag reports.

"In addition to direct damages, component procurement conditions and power outages are also affecting our operation," he added.

These additional operational costs could raise the losses caused by the earthquake to 150 billion yen, or $1.83 billion by the end of fiscal year 2012.

"Additionally, we expect net income or loss attributable to Sony Corporation's stockholders is expected to be positive for the whole fiscal year ending March 2012," Kato continued.

Adding in other losses, Sony could easily post losses over $3 billion over the next year, compared to the profitable year that the company had been expecting. The losses from the PSN attack include potential liabilities,such as an identity fraud protection program, and the loss of future revenue from gamers who move to other consoles.