Tag: fallout

There’s no fall out from Sony hack

2000px-United_States_Fallout_Shelter_Sign.svgDespite a storm in a teacup over the Sony hack, which saw high level political involvement, Sony insists that there will be no financial fallout for the company.

Sony Chief Executive Kazuo Hirai said he does not expect the November cyber attack on the company’s film studio to have a significant financial impact.

Apparently the film which North Korea wanted blocked “The Interview,” has generated revenue of $36 million. It earned another $5 million at 580 independent theatres showing the movie in North America.

The flick cost $44 million to make but given that it was a rubbish film, Sony probably was relieved that hack meant that it did not have to spend much marketing it. Most of the sales have been online. It will probably make a little more when it goes to DVD and Sony will get its cash back on a film that it otherwise probably would not have. Some have said that Sony spent $30 million marketing the flick which would mean that the film would come in at a loss.

“We are still reviewing the effects of the cyber-attack,” Hirai told reporters. “However, I do not see it as something that will cause a material upheaval on Sony Pictures business operations, basically, in terms of results for the current fiscal year.”

Sony Pictures may need several more weeks to rebuild its computer network after what has been deemed as the most destructive cyber-attack on a company on US soil. North Korea has denied it is behind it.