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The most interesting latest news on the topic: PlayStation |
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HTC will be the first smartphone manufacturer with Sony's PlayStation Certification, a move that may hurt sales of Sony's Vita gaming device. The agreement, which HTC will announce later this year, gives the company's devices access to the PlayStation Suite, a cross-platform gaming network. Users will be able to purchase classic PlayStation games on the PlayStation Store, playable on their smartphone and bringing console quality games to their device. Until now, the PlayStation Suite was exclusive to Sony's smartphones, but the company announced last year it planned to license its software to other manufacturers. Sony's smartphone business is struggling, and expanding the PlayStation Suite to some of the world's largest Android manufacturers is a good way to put its software into the hands of more customers. The service will likely make HTC smartphones more attractive to gamers, giving them a niche audience many manufacturers aren't serving. Sony's classic PlayStation One games like "Crash Bandicoot" and "Spyro the Dragon" are classic titles that many players will want to revisit, and others will enjoy even if they're playing them for the first time. Sony's decision to license its PlayStation Suite to smartphone manufacturers will likely bring the company a profit, particularly at a time when the company is struggling with lagging revenues, but it may come at the expense of its other gaming initiatives. Sony plans to launch the PlayStation Vita in the U.S. next week, and the company is marketing the system as a portable device that gives gamers a true console gaming experience. The system has graphical capabilities beyond any portable device currently on the market, but at its $250 price point may scare off prospective buyers. The Vita's primary competition is smartphones. Casual gamers, one of the fastest-growing segments in the market, are highly unlikely to spend big money on a dedicated portable gaming system when they can play games on a device they already own, and even some hardcore gamers are getting their fix on their iPhone and Android devices. The PlayStation Suite pays particular attention to this audience, allowing users to play classic console games of the past on a device that's already in their pocket. Sony may have made the PlayStation Suite exclusive to the Vita, giving customers more incentive to buy its new handheld, much like Nintendo has done with its Virtual Console on the Nintendo 3DS. Instead, Sony is licensing the Suite to smartphone makers, and although it may allow the company to reach millions of potential customers, it also gives all but the die-hard gamer another reason to pass on the Vita. |
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Sony plans to fully restore all PlayStation services in Japan, finally resuming service after a massive security breach hobbled the company and issued in a wave of hack in April. The Tokyo-based company announced it will restore online purchases of game content and video-on-demand from the PlayStation Network and Qriocity music service in Japan on July 6. The restoration marks the final step to full service after an 11-week shutdown of video game services after hackers stole data from nearly 100 million accounts, one of the largest data breaches to date. After the initial attack, Sony contended with a barrage of hacks to its websites and information systems, including a series of smaller intrusions in May and hacks on its Greek, Canadian, Thai and Indonesian websites. The wave of data intrusions -- and Sony's lagging response in informing and protecting customers -- caught regulators' eyes and prompted them to invite the company for an appearance at a U.S. Congressional hearing. As a result of the hearing, Sony reshuffled its gaming unit management and bolstered security by increasing server firewalls and adding software to monitor system vulnerabilities and intrusions. In addition, Sony also created the new post of chief information security officer. The company also attempted to shore up its battered reputation with its customers by offering customers a free year of credit card monitoring services as well as free games. But with a 12 percent drop in its share price since the initial breach, Sony faces an uphill battle to restore consumer confidence and regain its bearings. The April attack ushered in a wave of cyber-attacks on other companies and institutions such as the International Monetary Fund, the CIA, the U.S. Senate, defense contractor Lockheed Martin, Citibank, NATO and others. Sony and other companies must now tread more carefully against the increasing boldness of hackers and make cyber security a stronger priority. Sony's appointing an information security officer may be a solid step in this direction, especially since the company is likely on its guard for further attacks after its humiliating disaster this spring. The hackers responsible for the original April breach are still at large, according to Sony. Hacktivist collective Anonymous initially claimed responsibility for a series of distributed denial-of-service, or DDoS, attacks that crippled Sony servers in April, but claimed it stole no data in subsequent breaches. Sony is working with authorities such as the FBI to identify the attackers, and the search for suspects continues. |
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Tired of tracking Sony's latest hacker attack? A new website does all the work instead, compiling a list of the company's security breaches into one no-nonsense timeline. Hassonybeenhackedthisweek.com currently answers its own question with a big, bright red "Yes" upon entering the site, followed by a list of Sony's 20 security breaches and troubles to date, ordered by most recent back to its first major hit in April. Skittish PS3 fans and Xbox gloaters alike can "Like" the site on Facebook to receive automatic updates in their News Feeds. "Below is a list of the latest Sony hacks since the PSN attack in late April 2011" the site states. Then, in mock concern, it asks, "Did we miss one? Let us know!" While the site may treat Sony's difficulties lightly, Sony isn't laughing. The company has seen around 100 million users' accounts and 13 million credit card numbers exposed since the biggest online data breach in history from April 16 to 19. If multiple attacks weren't bad enough, hackers have poured salt in Sony's wounds by using elementary tactics to dismantle its security systems. "SonyPictures.com was owned by a very simple SQL injection, one of the most primitive and common vulnerabilities, as we should all know by now," said hacker group LulzSec after breaking into Sony Pictures. Sony's living nightmare amused LulzSec but drew pity from Internet watchdog F-Secure, whose spokesperson said, when they uncovered a recent attack on the company, "We know you're not supposed to kick somebody when they're already down...but we just found a live phishing site running on one of Sony's servers." Sony faces a clean-up bill upwards of $170 million, plus unforeseen legal fees and various other consumer protection costs. The company is providing angry customers $1 million in insurance to those affected by identity theft, plus offering free credit card monitoring services and free games to keep PS3 fans from defecting to Xbox. As a parting shot, the website offers colorful Nintendo ads for those "ready to move on from Sony." |
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Sony recently unveiled its latest portable gaming device, the PlayStation Vita, underscoring its hope and belief that handheld gaming devices can sell well even with the popularity of smartphones as a mobile gaming platform.
The Tokyo-based company believes there is still a market for dedicated handheld gaming devices, and its PlayStation Vita will be a strong seller within in a short time. The device is expected to launch later this year in Japan, and worldwide in 2012, and will retail for $250 for the Wi-Fi-only model, and $300 for a 3G version running on AT&T.
"If we were able to hit that 70 million mark for PlayStation Portable, we want to exceed that both in terms of numbers and timing to get to that number," said Kazuo Hirai, Sony president.
The Vita offers gamers high-definition graphics, two cameras and two touch screens, including one on the rear of the device. The device will also offer Crossplay, allowing users on the Vita to play and interact with players on the PlayStation 3.
The Vita is the entertainment giant's gauntlet against the mounting challenge from smartphones, which have emerged as a powerful force in mobile gaming. Recently, mobile gaming has shifted away from dedicated gaming devices like those from Nintendo and Sony, and towards smartphones like the iPhone and Google's Android devices.
Last month, the Guinness World Records named the iPhone 4 the fastest selling gaming device in history. It sold 1.5 million units the day it launched on June 24, 2010. In comparison, Sony's PSP managed to sell 200,000 units its first day, while Nintendo needed nine days to move 500,000 DS handheld devices in 2004.
Another factor cited for this trend is the astounding volume of games offered by app marketplaces, with many titles being free or hovering around $1, compared to $30 to $50 price tags for traditional gaming consoles. The shift has game companies worried.
"I fear our business is dividing in a way that threatens the continued employment of those of us who make games," said Satoru Iwata, Nintendo president, lamenting the trend of customers moving away from purely gaming devices toward multi-purpose smartphones.
Sony, though, believes the mobile gaming market still has a place even with the rise of the smartphone as a viable gaming platform.
"We see an absolute market for handheld gaming," said John Koller, director of hardware marketing for Sony Computer Entertainment America, to the Seattle Times. "There are deeper, richer experiences that are only possible on something like a Playstation Vita."
"We spend 80 percent of our time outside the home," he continued. "We need to make sure the portable portion of our strategy is significant. Being able to connect with the [PlayStation 3] through Vita allows us to have the entire ecosystem in play at any given time."
With gaming handheld sales suffering, its profits plunging and Sony's public reputation taking a beating in a series of high-profile data breaches, much is riding on the Vita for the company. Sony's read on the public desire for a dedicated handheld may pull it through, or it may just be the next obstacle in an increasingly bumpy course for the company.
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Sony posted its biggest profit loss in 16 years, following supply troubles in Japan, compounded by a string of a massive data breaches to its PlayStation network.
The Tokyo-based company, which has yet to fully feel the financial weight of the hacks, reported a $3 billion loss, compared to a $500 million loss a year ago.
Sony's downward spiral accelerated when the Japan earthquake damaged ten plants that made components like Blu-ray discs and magnetic tape. Sony expects at least one plant to reopen within two months, but the broken supply chain continues to affect production.
Compounding Sony's difficulties, hackers broke into its online network and stole the personal information from 100 million users in mid-April. Since then, Sony has dealt with frequent, if comparatively minor, hacks, adding further blows to its reputation.
As a result of the high-profile security breaches, the company is neck-deep in costly lawsuits. Besides having to cover insurance policies of up to $1 million for potential victims of identity theft, it is offering free games, expected to cost $170 million, for all its customers, in an effort to placate them after a month of network outages.
But the company is optimistic, forecasting $975 million in profits for the current year. Sony is betting on its "Next Generation Portable" gaming device, set to feature improved graphics, Wi-Fi and 3G connectivity, two cameras and dual thumbsticks, will help dig the company out of its hole. The company said it would be out later this year.
However, Sony has growing competition in the portable gaming market from smartphones, especially as on-the-go gaming increasingly moves to mobile handsets. The company relies on its strengths in gaming for a strong stream of its revenues, but as recent attacks show, it's an area that's increasingly vulnerable.
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Sony has been hacked again, further bruising its tarnished image, as the company struggles to prove it can secure its networks.
Hackers snuck a phishing trap onto Sony's Thailand website that directed users to a fake credit card site that prompted people for their card details. After being notified of the exploit by a security expert, the company removed the scam.
Then Sony announced that hackers made off with over $1,000 worth of virtual points from users of the company's So-net Entertainment ISP on May 16 and 17, but according to a spokesperson personal data was apparently not compromised.
"At this point in our investigations, we have not confirmed any data leakage," said Keisuke Watabe, So-net Entertainment spokesperson. "We have not found any sign of a possibility that a third party has obtained members' names, address, birth dates and phone numbers."
Watabe also said that although it was impossible to rule out a connection with the earlier hacks that exposed over 100 million customer records, this appeared to be an unrelated incident.
The two gaffes are nothing compared to the earlier attacks that forced Sony to shut down its PlayStation network for weeks -- U.S. media might not even have picked up the stories if not for their proximity to last month's fiasco. But their timing is unfortunate for the company as it tries to restore customer faith in its services and even minor security slips take on larger significance in people's minds.
U.S. legislators considering laws to ensure that companies properly protect user data may also see the ongoing hacking as evidence that Sony and perhaps other companies can't be relied on to police themselves. A House subcommittee on data privacy already appears to be growing impatient with the time the company is taking to address questions about the earlier attacks.
How useful any legislation the does emerge will actually be is impossible to predict: network security's complexity and furious speed of development may not lend it to being shaped by laws. But frustration in government and the public makes it likely that some effort to codify best practices will emerge this year, hopefully giving companies like Sony still more motivation to plug security holes in its networks.
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Sony today suffered yet another embarrassing network security problem, as a hole its newly-created password reset program compounded the company's attempts to polish its tarnished image.
According to Nylevela.com, Sony's password reset feature, which was created yesterday to bring PlayStation gamers back online, can be easily hacked. Anyone can change a PS3 user's newly-reset password by re-entering their e-mail and birthdate. Since hackers already have this information, thanks to the April 16 to 19 attacks, this exploit could be used.
"You risk having your account stolen, when this hack becomes more public, if you do not make sure that your PSN account's e-mail is one that cannot be affiliated with or otherwise traced to you," Nylevia warned.
In response to this alert, Sony immediately took down its PSN and Qriocity password reset sites.
Clarifying what exactly was affected, Sony emphasized that gamers will still be able to sign into PSN via your PlayStation 3 and PSP devices to connect to game services and view Trophy/Friends information. Evidently, the maintenance doesn't affect PSN on consoles, only the website used to for the "password change" e-mail.
Still, this latest egg on Sony's face will prolong its network restoration and further anger already exasperated customers. The gaming giant yesterday announced a freebie game package to welcome people back after nearly a month of outages. But Sony hasn't restored service everywhere -- it estimates this will take another month.
And now that people can't reset their passwords, the delays may drag out even further.
In the meantime, Sony is dealing with numerous lawsuits, demands for an explanation from Congress and governments around the world, in addition to plunging stock prices. Even the Japanese government demanded further testing before allowing its citizens back online. That caution seems justified, begging the question if other countries should have exercised the same caution.
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A House subcommittee sent Sony a follow-up letter asking for answers to earlier questions about the company's data breach that remain unanswered, continuing a dialog that may shape data protection legislation.
The letter was signed by Representative Mary Bono Mack, chairwoman of the Subcommittee on Commerce, Manufacturing and Trade, which reportedly plans to unveil new consumer data protection legislation this year.
Sony's recent breaches -- 77 million users were affected in one and 24 million in another -- are among the largest ever reported. They are precisely the sorts of attacks likely to drive consumer protection legislation because they suggest that Sony's market interests, and by extension those of other players, are insufficient to motivate proper security practices.
In the letter, Bono Mack wrote that because time has passed and Sony had restarted its PlayStation Network, the subcommittee hoped the company could address questions left unanswered in the first exchange. She also posed new ones about the second attack, on Sony's Online Entertainment web site, that came to light after the first letter was sent.
In the original letter, Bono Mack also asked Sony to send a representative to a hearing discussing the threat of data theft. The company declined, citing its occupation with the ongoing investigation into its own breach.
Sony CEO Howard Stringer said the company still hadn't found the culprit.
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Sony CEO Howard Stringer was unapologetic about the time that passed before the company notified customers that their data had been exposed, underscoring the difference between corporate attitudes and what customers expect.
"Most of these breaches go unreported by companies," Stringer said to reporters. "Forty-three percent of companies notify victims within a month. We reported in a week. You're telling me my week wasn't fast enough?"
It clearly wasn't fast enough for the millions of customers whose personal information, including credit card data in some cases, was exposed in one of the largest breaches ever.
The comments seem to ignore that over 40 states have laws requiring companies to notify customers of a data breach that could affect them, in some cases within a week.
Stringer also called the incident, in which personal data of 77 million users was exposed, a "hiccup."
"Nobody's system is 100 percent secure," Stringer said to Bloomberg.
The defensive statements highlight a disconnect between corporate attitudes and feelings of the public. People think their data should be safe-guarded. Stringer seems to think that the occasional spill is part of doing business: it'd be better if they didn't happen, but what are you going to do? After all, nobody's network is 100 percent secure.
Financial services companies, with dollar values more firmly attached to breach risks, do seem largely capable of protecting their networks. It may be that Sony simply underestimated the cost of a security failure: estimates of the cost to the company, including lost revenues and identity theft insurance, are as high as $2 billion.
Sony does seem to be addressing security issues. Kazuo Hirai, Stringer's heir-apparent, said the company is rebuilding its security network and hardening its servers against attack. The company has also created new managerial-level security positions.
The case makes a convincing argument for federal legislation mandating adequate protections on user data. The House subcommittee on Commerce, Manufacturing and Trade reportedly expects to introduce data security legislation this year, which could help address the problem.
String said that the company was still hunting the culprit.
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Sony today announced a freebie PlayStation game package to placate angry customers after a massive data breach downed its network for several weeks.
As part of the package, PlayStation owners in Europe and North America will get to pick four out of nine PS3 games, choosing from titles like "inFAMOUS," "LittleBigPlanet" and "Super Stardust HD." The games are valid for a lifetime and will remain available for 30 days from Sony's complete network restoration.
In addition, Sony is offering free movie rentals, free 60-day subscriptions to existing customers and 30-day trials for first-timers, plus 100 free virtual items on PlayStation Home.
"You will be able to access the above content shortly after services are fully restored," said Patrick Seybold, Sony's senior director, in a company blog post. "We are doing everything we can to make that happen as soon as possible."
The Japanese electronics giant officially brought its systems back online yesterday, though not all areas have full coverage. Only the Americas, Europe, the Middle East, Australia and New Zealand are now plugged in.
Japan, ironically, is not convinced the Tokyo-based company has properly patched its security systems; Japanese citizens must wait for further testing before enjoying multiplayer Everquest sessions online.
The country's insistence on top-notch security makes sense in the wake of Sony's legal and financial disaster.
The cyber-attacks that rocked the company's PlayStation Network, Online Entertainment and Qriocity music streaming services from April 16 to 19 have prompted lawsuits, investigations and angry demands for accountability from government officials around the world. Around 100 million users' personal information was lifted, including some credit and debit card numbers.
Sony's stock has dipped nine percent since the debacle, though it rose slightly once the company announced Monday that it had begun restoring its systems.
Whether Sony's peace-offering will be enough to stem the tide of users switching to rival console Xbox remains to be seen. Some customers' reactions have been ecstatic, while others say many hard-core gamers already own most of the freebies.
Though the value of the four free games is set at $60, detractors say those who already own inFAMOUS and LittleBigPlanet will only get a $23 total package in the other two games.
Interestingly, Sony's freebie package differs by territory. For example, the list of games for U.S. customers is a bit more violent than that for German customers. Instead of games like "Dead Nation" and "Killzone Liberation," German gamers have a tamer selection including "Everybody's Golf 2" and "Buzz Junior Jungle Party."
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