Sony Stock Takes Hit on Tokyo Exchange on Security Worries

May 6, 2011 -

It should come as no great surprise that Sony shares have taken a beating since the massive security breaches a few weeks ago. The prolonged downtime of the PlayStation Network is also weighing heavily on investor confidence. Sony shares dropped 3.7 percent on Friday following this week's announcement that Sony Online Entertainment has been hacked and the ongoing struggle to get PSN back online.

Tokyo's financial markets were closed for national holidays Tuesday to Thursday, but reacted negatively to news on Friday morning, according to a Reuters report.

Analysts are also voicing concern about Sony's current situation, and with rumors of a third attack this weekend it is a recipe for more declines in its stock price.

Citigroup Global Markets Japan analyst Kota Ezawa said in a research note that "there is a real concern that trust in Sony's business will decline. The network business itself still only makes a small direct contribution to earnings, but we see a potential drop in hardware sales as a concern."

Sony president Howard Stringer issued an open letter to the public apologizing for all the problems and promising to have better security going forward. Sony also announced a free 12 month indentify theft protection program for PSN users when the service relaunches.

Source: C&VG


Comments

Re: Sony Stock Takes Hit on Tokyo Exchange on Security ...

That Sony took such a small hit says volumes about the value investors see in their game devision.

Re: Sony Stock Takes Hit on Tokyo Exchange on Security ...

My thoughts exactly... That, or they have an incredible trust as a whole in SONY's ability to turn it around...

 
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Have you visited a video game arcade in the last year?:

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MechaTama31I sure have. Dorky's barcade in Tacoma, WA.08/20/2014 - 5:56pm
Matthew WilsonI have not been to a arcade in years. I know arcades are still big in japan.08/20/2014 - 5:38pm
Sleaker@AE - Ah no it's called GroundKontrol - I was just referring to it as a Bar-Arcade.08/20/2014 - 4:39pm
Andrew EisenStill looking for confirmation that High Moon Studios (dev behind the PS3/360 versions) isn't working on it.08/20/2014 - 4:38pm
ZenGotcha.08/20/2014 - 4:37pm
Andrew EisenI already updated the story with it!08/20/2014 - 4:36pm
Zenhttp://www.gonintendo.com/s/235574-treyarch-isn-t-working-call-of-duty-advanced-warfare-for-wii-u-either08/20/2014 - 4:36pm
ZenLet me send the link for the Tweet as well...they state Treyarch is not working on it. Grabbing it now.08/20/2014 - 4:34pm
Andrew EisenWhere does it say that "NO dev is working on it"?08/20/2014 - 4:33pm
ZenHere's the link for my last comment: http://www.ign.com/articles/2014/08/20/call-of-duty-advanced-warfare-not-coming-to-wii-u08/20/2014 - 4:24pm
ZenWell, Call of Duty is skipping Wii U completely it seems...they updated that NO dev is working on it. Great way to just skip a market.08/20/2014 - 4:24pm
Andrew EisenYeah, Dave and Busters back in 2011 was the last time for me.08/20/2014 - 4:16pm
ZenWell, I tried lol. We just got a Dave and Busters on the beach but haven't been there yet...may go this weekend.08/20/2014 - 3:52pm
Andrew EisenIt's called The Bar-Arcade? Missed opportunity. I would have gone with Barcade.08/20/2014 - 3:25pm
SleakerThe Bar-Arcade however did have a lot of good pinball machines, they were however always taken as the place was packed..08/20/2014 - 1:17pm
Sleakerso I've been to an Arcade-Bar, not that great of a place has some okay machines, but generally over-packed. And then all the kid-friendly ones have is ticket-games nothing actually good unfortunately :(08/20/2014 - 1:14pm
Andrew EisenIf it has an area dedicated to arcade machines, I'd say it counts. Arcade machine in your house though, nope.08/20/2014 - 12:16pm
ZenDoes it count if you have actual arcade machines in your house?08/20/2014 - 12:01pm
E. Zachary KnightWith the current poll, I guess it all depends on how one defines "arcade". If Chuck E Cheese or similar multipurpose businesses count, then that is a yes for me.08/20/2014 - 11:59am
ZenLet the ax fall Sleaker...lessons MUST be learned...08/20/2014 - 11:44am
 

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