Agrees hacker attack that crippled its online entertainment service was a hiccup in company’s internet plan.
Sony Corp Chief Executive Officer Howard Stringer said the hacker attack that crippled its online entertainment service and exposed more than 100 million customer accounts was a hiccup in the company’s Internet strategy.
“Nobody’s system is 100 per cent secure,” Stringer, 69, said in a phone interview almost a month after the shutdown of the online entertainment services. “This is a hiccup in the road to a network future.”
The attack has undermined Stringer’s plan to lure customers by linking Sony’s televisions, mobile devices and computers to its entertainment content through the Internet. Stringer, who apologised for the breach earlier this month, said he doesn’t have estimates for how the hacking attack will affect earnings, scheduled for May 26.
“Investors are waiting to see more information on the financial impact of the incident,” said Yuji Fujimori, a Tokyo- based analyst at Barclays Plc. “Sony, being a victim of the attack, hasn’t been able to disclose much about the investigation.”
Sony hired three security firms to investigate the attack and is working with law enforcement officials after criticism it was too slow to inform consumers about the breach.
INTERNET-ENABLED PRODUCTS
Japan’s biggest exporter of consumer electronics is increasing its reliance on the Internet to help spur demand for its products. Sony’s PlayStation Suite, powered by Google Inc’s Android software, allows users to download games made by smaller developers.
The maker of Bravia televisions in October started offering Web-enabled TVs in the US that use Google software to let viewers access websites and videos.
The Tokyo-based maker of the PlayStation console is working to determine whether other computer systems were invaded, Stringer said. US lawmakers have pressed Sony for more information about the hacker attack, the second-largest online data breach in US history.
Authorities in the US, Europe and elsewhere haven’t provided Sony with details of criminal investigations into the attacks, Stringer said.
INSURANCE POLICY
Stringer on May 5 offered US users of Sony’s PlayStation Network and Qriocity services a year of free identity-theft protection, backed by a $1 million insurance policy per user covering legal and ID-restoration costs, as well as lost wages that occur after data is stolen. The company also offered users a package of free games and movie services as compensation.
Representatives Mary Bono Mack, a California Republican, and GK Butterfield, a North Carolina Democrat, sent a letter to Sony requesting details on what customer information may have been stolen and whether the company’s investigation has determined how the breach occurred. The letter requests a response by May 25.
Kazuo Hirai, Sony’s executive deputy president in charge of consumer products and network services, informed Stringer of the breach shortly before shutting down the online services.
“Kaz and I together worked out what we need to do,” Stringer said. Hirai and two other company officials bowed in apology at a press conference in Tokyo earlier this month.
After a three-week outage, the company resumed partial operation of the entertainment services this week. Restored operations include online gaming, chat service and music downloads. Sony plans to restart service in Asia soon, according to a May 15 statement.
