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Monday, 2 May 2011 - Sony seen facing long battle to regain trust after data breach |
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    Edition: U.S. Article Comments (0) Slideshow Video Follow Reuters Facebook Twitter RSS YouTube Read Osama bin Laden killed in shootout, Obama says | 3:27am EDT Osama bin Laden: 9/11 author who defied Bush, Obama | 2:52am EDT U.S. believes Osama bin Laden son also killed in raid | 2:54am EDT U.S. Special Forces led bin Laden operation: source | 2:56am EDT Al Qaeda No.2 Zawahri most likely to succeed bin Laden 12:48am EDT Discussed 103 White House releases longer Obama birth certificate 96 Donald Trump calls U.S. leaders ”stupid” 65 Obama to make statement late Sunday, White House says Watched Osama bin Laden is dead: Obama 12:11am EDT Fire ants form rafts to defy floods Tue, Apr 26 2011 Osama bin Laden dead 5:44am EDT Sony seen facing long battle to regain trust after data breach Tweet Share this By Isabel Reynolds and James Topham TOKYO (Reuters) - Sony Corp will need time to restore trust in its online security systems as it prepares to restart its PlayStation video games network following the leak of personal details on 78 million user... Email Print Related News Sony to keep pursuing network strategies after security breach 3:04am EDT Sony: no impact from data breach on tablet, NGP launch 3:04am EDT Analysis & Opinion Tech wrap: Microsoft earnings fail to excite Fear, loathing and apathy about digital security Related Topics Technology » Hot Stocks » Asian Markets » Media » Stocks     Related Video Sony sorry over PS Network raid Sun, May 1 2011 1 / 3 Sony Corp's Executive Deputy President Kazuo Hirai speaks at a news conference to apologise for a massive security breach of its PlayStation Network in Tokyo May 1, 2011. Credit: Reuters/Kim Kyung-Hoon By Isabel Reynolds and James Topham TOKYO | Mon May 2, 2011 3:04am EDT TOKYO (Reuters) - Sony Corp will need time to restore trust in its online security systems as it prepares to restart its PlayStation video games network following the leak of personal details on 78 million user accounts. Many PlayStation users around the world were angry and frustrated that the first warning of one of the largest Internet security break-ins ever came a week after Sony detected a problem with the network on April 19. Some were dissatisfied with the limited free services offered as incentives after Sony on Sunday apologized and said it would gradually restart the PlayStation Network with increased security. Analysts warned restoring customers' faith would take time -- a blow to the consumer electronics giant that has touted online services as a way of leveraging its strengths in both hardware and content, including films and music as well as games. "Damage has been done to Sony whatever the scale of the content giveaway at this point, and Sony is facing a prolonged effort to regain customer trust," said Jay Defibaugh, director of equities research at MF Global in Tokyo. "Anything that undermines consumer willingness to divulge credit card details to Sony is a problem for the network strategy," he added. Sony said on Sunday it would offer some free content, including 30 days of free membership to a premium service to existing users and in some regions pay credit card-renewal fees, but added compensation would only be paid if users suffered damage. The news sparked thousands of comments on the PlayStation blog and Facebook page, many of them supportive, but some expressing dissatisfaction. "The point is you took our money and didn't secure our credit card and personal data. I'm not even sure how you can possibly make up for that," said a post by a user under the name rawstory. Others said they planned to pay for services using prepaid cards in future. Shares in Sony were up 2.5 percent to 2,316 yen, outperforming the broader Nikkei index, but falling short of rival Nintendo Co Ltd, which was up 4 percent. Sony shares fell as much as 5 percent on Thursday as concerns mounted about the impact of the breach. Analysts said the leak would weigh on investor sentiment. "At minimum, having to suspend the service, fix its problems and deal with the aftermath, looks set to cost (Sony) tens of billions of yen," said analyst Nobuo Kurahashi of Mizuho Investors Securities. "I don't think anyone knows where they will be able to absorb this loss, nor how much it will be, and that'll weigh on share prices going ahead," he added. Goldman Sachs estimated the total earnings impact would be less than 50 billion yen. Many users open multiple accounts and the total number of valid credit cards registered on the network is 10 million, with other gamers using prepaid cards. The incident has sparked legal action and investigations by authorities in North America and Europe, home to almost 90 percent of the users of the network, which enables gamers to download software and compete with other members. Sony is the latest Japanese company to come under fire for how it has disclosed bad news. Tokyo Electric Power Co was criticized for how it handled the nuclear crisis after the March 11 earthquake. Last year, Toyota Motor Corp was slammed for being less than forthright about problems over a massive vehicle recall. (Editing by Joseph Radford and Lincoln Feast) Technology Hot Stocks Asian Markets Media Tweet this Share this Link this Digg this Email Reprints   We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback   Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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