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Edition: U.S. Article Comments (2) Slideshow Follow Reuters Facebook Twitter RSS YouTube Read Libya's Gaddafi survives air strikes, son killed - government | 2:11am EDT Libyan leader's son Saif al-Arab killed in NATO strike 30 Apr 2011 Syrians protest from rooftops after army action | 30 Apr 2011 Escaped prisoner shoots four in Mass. rampage 30 Apr 2011 Sony to resume some PlayStation services; apologizes for breach 2:46am EDT Discussed 102 White House releases longer Obama birth certificate 85 Donald Trump calls U.S. leaders ”stupid” 50 Woman mauled to death by pit bulls in New Mexico Watched Fire ants form rafts to defy floods Tue, Apr 26 2011 Libyan leader's son Saif al-Arab killed in NATO strike 1:19am EDT Kate's wedding party evening gown Fri, Apr 29 2011 Sony to resume some PlayStation services; apologizes for breach Tweet Share this By Isabel Reynolds TOKYO (Reuters) - Sony said it would resume some services on its PlayStation Network this week and offer incentives to customers to prevent them turning to competitors after the theft of personal information belonging to 78... Email Print Related News Sony to keep pursuing network strategies after security breach 1:37am EDT Sony: no impact from data breach on tablet, NGP launch 2:01am EDT Analysis & Opinion Tech wrap: Privacy storm strikes Sony, passes Apple Fear, loathing and apathy about digital security Related Topics Technology » Media » Stocks 1 / 2 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 TOKYO | Sun May 1, 2011 2:46am EDT TOKYO (Reuters) - Sony said it would resume some services on its PlayStation Network this week and offer incentives to customers to prevent them turning to competitors after the theft of personal information belonging to 78 million user accounts. Top Sony executives apologized for the massive data breach at a news conference in Tokyo on Sunday, the first public comments from the Japanese electronics giant on the crisis since the PlayStation Network went down on April 19. Sony repeated that credit card information could have been among the data stolen. "We apologize deeply for causing great unease and trouble to our users," Kazuo Hirai, Sony's number 2 and the frontrunner to succeed CEO Howard Stringer, said before bowing deeply. Stringer was not at the news conference. Many PlayStation users were angered by the fact that the first warning of one of the largest Internet security break-ins ever came a week after Sony had shut the network and hours after Hirai made an upbeat appearance at the unveiling of the company's first tablet computers. Sony said it would offer some free content, including 30 days of free membership to a premium service to existing users, to prevent customer flight. Security had since been boosted on the company's computer systems, Sony said, adding that enhanced levels of data protection and encryption would be implemented. The U.S. Federal Bureau of Investigation had been asked to probe the breach, Sony said. Peppered with questions about accusations Sony was slow to inform users of the breach, a grim-faced Hirai said the company first wanted to know what kind of information had been stolen. Hirai said he had known about the infiltration when he unveiled Sony's first tablet computers on April 26. "We made the announcement as soon as we could, which turned out to be the day after the launch," said Hirai, Sony's executive deputy president. The breach could be a major setback for Sony. Although video game hardware and software sales have declined globally, the PlayStation Network is a key initiative for the electronics firm, bringing in an estimated $500 million in annual revenues. Sony's delay in announcing the theft could push some users to rival Nintendo's Wii and Microsoft's XBox gaming devices. Hirai said Sony could not yet assess the impact on earnings. "This criminal act against our network had a significant impact not only on our consumers but our entire industry. These illegal attacks obviously highlight the widespread problem with cyber-security," Hirai said in a separate statement. "In addition, the organization has worked around the clock to bring these services back on line and are doing so only after we had verified increased levels of security across our networks." The incident has sparked legal action and investigations by authorities in the United States 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 shares tumbled 4.5 percent on Thursday. Markets were closed on Friday. Hirai needs to persuade users that the network is safe and investors that Sony's strategy of exploiting synergies between hardware and content via online services, which he has expanded to include movies and music, is manageable. He told the news conference that Sony would continue to build its network-related businesses as a key strategy for the company. Hirai was appointed to the No. 2 position in March after building up Sony's networked services. Sony is the latest Japanese company to come under fire for not disclosing bad news quickly. 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 Anshuman Daga, Nathan Layne and Dean Yates) Technology 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 (2) adelacruz wrote: So, they are giving 30 days free on the paid services. Just because we get 30 days free of the service doesn’t mean we will get any value out of it. They could very well not provide any worthwhile content for the next 30 days, but they still save face by making good on giving the 30 days free access. It’s like if NetFlix would give 30 days free access to to their service and then they go and only offer movies from the 1950′s. I’m not saying I deserve compensation, I’m saying that to me this is an insult to our intelligence and just more salt on the wound May 01, 2011 1:44am EDT -- Report as abuse star_lite6000 wrote: your not saying u deserve compensation and yet ur complaining about what they’re offering, wow that makes alot of sense. They don’t have to do anything, it doesn’t make a difference to me, as long as I can get back to playing COD online it’s all good. Just be patient. I couldn’t even imagine what they’re going through and the money they loss over all this. May 01, 2011 2:18am EDT -- Report as abuse See All Comments » Add Your Comment 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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