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PlayStation Network downtime costs studio "thousands," but Sony's bill could run into millions

by Stephen Coleman on 28 April 2011, 08:49

Tags: Sony Computers Entertainment Europe (NYSE:SNE)

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A UK-based PSN developer has predicted a huge backlash in spending when Playstation Network comes back online, revealing it's lost "thousands" thanks to the downtime.

CVC spoke to the anonymous head of the studio who claims his or her company has been stranded with "absolutely no revenues" for an entire week, while predicting further downfalls ahead for the PS3 online service.

"What we're concerned about is how many people are going to come back after the PlayStation Network comes back online," they said.

"There may be a lot of people who won't want to spend their money through PlayStation Network now. We're expecting a 5-10 per cent drop in business." "People will be a bit more wary about using their credit card on PSN, so obviously we're nervous about sales".

They also expect PSN to be down for at least another week which is bound to cause more suffering for studios that rely on digital content.

"For the last week we've lost a lot of money from the PlayStation Network being down," the developer said.

"This will likely be a two-week period where we literally have no money coming in. Zero revenues over a two-week period is definitely an issue for us. We've lost [£] thousands."

"Hopefully Sony will try to ensure this never happens again. We're certainly hoping we'll get something back from Sony. Perhaps they'll cut their royalties a little bit for a short period, to make up for the losses."

The knock-on effect for Sony could be even worse. Analyst have predicted that the estimated cost of a data breach involving a malicious or criminal act averaged $318 per case in 2010. With those figures in mind, and over 70 million registered users on the PSN, Sony's end bill could even run into billions.

Source: Forbes


HEXUS Forums :: 4 Comments

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I don't have the slightest bit of sympathy for Sony, TBH. It was their ludicrously insecure architecture which allowed the breech in the first place. And while losing millions or billions sounds more impressive on a spread sheet. Losing thousands in a week can put a small studio out of business. Sony will just offload that expense on future victi.. I mean customers.
If Sony want to keep the PSN alive…which is far easier said than done now…it would be wise of them to help the small developers and studios, whether it by financial compensation, investment, free license to develop for the PS3 or something else much smarter which I can't be arsed to think of.

Just look at the thriving economy of the Xbox Arcade and you can see the huge amount of effort gone into the network - PS3 just doesnt have that. And I got both consoles - i rarely browse Sony's offering despite it being the console I use more often!

And as a PS3 owner - i think all 77 million account holders should be compensated…with:

A. A free game/voucher

B. The opportunity to meet the development team responsible - and have a free punch/kick/slap - to each one. 77 million kicks to ones gentleman area shall be rather amusing…for us.
Well, you pay for XBOX, that's why it's so beautiful. It's someone's sole paid job to look after XBOX.

Don't think that's the case with Sony. IMO, one of their internal teams must have developed it at first and once it got working, that's it!
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