PSN Data Breach Could Cost Sony $24 Billion

April 27, 2011Written by Anthony Severino

The news of a major security breach where consumer’s credit card and personal information have been put at risk, spells some seriously bad news for PSN users. Worse yet, is what this means for Sony, which has an uphill battle to face in regaining consumer trust and proving to developer and publishing partners that the PSN can still remain a profitable venture.

In fact, according to data-security research firm, The Ponemon Institute, the estimated cost per record breach involving a malicious act averaged at $318. With 77 million registered PlayStation Network accounts possibly affected, this brings the total cost to the tune of $24 billion. Not to mention the long-term affects this may have on relationships with consumers and partners, or the marketing that’s going to be needed to rebuild the PlayStation image.

Josh Shaul, Chief Technology Officer for Application Security Inc., calls the fiasco “one of the worst breaches we’ve seen in several years”. With such a massive breach, there really is no telling the true financial impact this will have on Sony and the PlayStation brand.

Sony Corporation’s (NYSE: SNE) stocks have plummeted 3.89% since Sony publicly announced details of the security breach.