Sony's Stringer apologises for data breach

Sony will offer US PlayStation users free enrollment for 12 months in an identity protection programme Sony Chief Howard Stringer has apologised to the millions of users of the company's hacked online networks, as it unveiled a free $1 million insurance policy for those in the US.
In his first public remarks after the company shut down its PlayStation Network and Qriocity music streaming services after discovering a breach that affected more than 100 million accounts, Stringer said: "I know this has been a frustrating time for all of you".
Last month's intrusion resulted in the theft of names, email addresses and possibly credit card information from Sony's online entertainment and games platforms.

Sony took down its PlayStation Network and Qriocity service over two weeks ago to investigate the hack and secure the network from future attacks. It later said its Sony Online Entertainment platform had also been hit.

The company said it will offer US PlayStation Network and Qriocity users free enrollment for 12 months in an identity protection programme including a $1 million insurance policy per user if they become victims of identity theft.
It added it was working to make similar programmes available elsewhere.
Sony shares dived 2.3 percent Friday in the first day of trading after a three-day break on the Tokyo stock exchange. It was the first opportunity investors had to react to the company's revelation that the network attack was broader than first thought.

Sony had previously said 77 million users had been affected, but this week revealed another 25 million Sony Online Entertainment accounts had been targeted, bringing the total to more than 100 million.
"Let me assure you that the resources of this company have been focused on investigating the entire nature and impact of the cyber-attack we've all experienced and on fixing it," Stringer said in a blog posting.
He said there was no evidence credit card or personal information had been "misused". Sony has said it can't rule out the possibility that such information had been stolen.

The company has faced criticism for not disclosing the intrusion into its PlayStation Network until a week after discovering it.
"I know some believe we should have notified our customers earlier than we did. It's a fair question," Stringer said.
"I wish we could have gotten the answers we needed sooner, but forensic analysis is a complex, time-consuming process."
Kazuo Hirai, Stringer's heir apparent, on May 1 apologised for the breach and said Sony aimed to fully restore the online gaming service by the end of the month, with freebies offered to gamers by way of apology.

The breach is a blow for Sony as it focuses on pushing content such as games and music through hardware platforms including game consoles, smartphones and tablet computers amid competition from Apple's iTunes and App store.

The Playstation Network system was launched in 2006 allowing PS3 gamers to compete online, stream movies and access other services via the Internet.
Along with the Qriocity streaming music service, it was shut down on April 20 following the breach and has remained offline as the company upgrades security and works with US Federal Bureau of Investigation.

Sony is being sued in a US court by gamers who have accused it of being negligent and breaching its contracts with PlayStation Network users.
Analysts say the company, reeling from the impact on production of Japan's March 11 earthquake, faces costs in beefing up security and compensating consumers. Its shares are down more than 20 percent from pre-March 11 levels.
"Games are one of Sony's main pillars, so it's very unsettling to investors that they don't have enough information yet to estimate how much compensation costs, legal expenses and missed revenue will arise from the incidents," a portfolio manager at a Japanese securities firm told Dow Jones Newswires.

Internet vigilante group Anonymous denied involvement on Thursday in the breach after Sony said hackers had planted a file named "Anonymous" on the servers of the Sony Online Entertainment network at around the time members of the group carried out distributed denial of service (DDoS) attacks on Sony servers.

The Japanese electronics company stopped short of directly accusing Anonymous of carrying out the data theft but said it bore some responsibility.