Does PSN problem = Red Ring of death.. in losses for Sony??

[Grimes]

Xero said:

Funtime said:

ethomaz said:

No.

Because I hate to spend more money in a new consoles (RROD)... PSN is free after all, no money in trash.

RROD victims didn't spend more money. MS fixed their 360's for free. If people had to pay for their own repairs or replace their 360's with their own coin then MS would have profited from the RROD due to people re-buying their consoles as opposed to losing over a billion dollars which is what actually happened.

Most I knew just bought a new console. They believed their warranties had already expired at the time, or simply wanted a new console sooner than later. And shipping it off to Microsoft was unlikely to be a quick resolution. 

As for this, it's unlikely to be that much of an issue. They'll lose a little money for the period afterwards, with around a 5% down, on PSN sales for at least 1-2 months after this is resolved. Insurance will cover pretty much any other financial loss. Even if they WERE found to be negligent... it's unlikely consumers will see all that much success with the lawsuits. It doesn't look like the information lost is going to lead to any financial loss to the individual consumer, so any reporations Sony would need to pay wouldn't be too significant. 

This doesn't compare to a massive hardware failiure, like RROD. With employment, shipping, court cases etc, that type of problem runs up an obsene cost for the company. 

Insurance doesn't cover negligence.