What Sony does next is critical to its future in games

Gamers are slow to forgive. Many own a PlayStation 3 today because they were angry at Microsoft for letting them down when the Xbox 360 suffered from a huge number of breakdowns due to a manufacturing flaw that led to overheating.

Microsoft’s consumer-unfriendly handling of the Xbox 360′s defects helped Sony recover from a poor launch of the PS 3, which went on sale for far too much money — $599 compared to the $399 Xbox 360 and the $250 Nintendo Wii. Microsoft had to work long and hard to get back its momentum in the market.

Now the shoe is on the other foot. Sony’s expected two-week outage for the PlayStation Network could potentially derail the PS 3′s future. So far, Sony has shared precious little information, except that hackers brought down the network and may have stolen the identities and credit card numbers for the PlayStation Network’s 77 million registered users.

Sony executives — game and network services head Kaz Hirai and chief executive Howard Stringer himself — should hold a press conference where they publicly apologize for potentially exposing their users to identity theft by failing to protect their credit card numbers and other personal information. They should do it now, not wait until their investigation is complete or wait until they bring the service back online. Every day of silence is a day when consumers will stew and grow angrier. When the head of the company apologizes, gamers will feel their problems are being taken seriously.

If there’s any debate inside Sony about what it should do now, it should end. Cost should not be a worry. Sony has to win trust back and do it fast. It has to be generous and offer to compensate users for their losses. It has to make up for their lost time and entice them to come back, since they are likely considering the competition, if our poll results from yesterday are any indication. It has to beef up its security and reassure consumers that their data will be safe. (In our poll, 62 percent of voters, or 2,597 users, say they would consider switching from the PS 3 to the Xbox 360 because of the outage).

Whatever Sony does, it shouldn’t argue with consumers about what they are entitled to have. Microsoft made that mistake, telling users they didn’t need replacement machines. And Intel made that mistake back in 1994, telling consumers they didn’t need to replace its Pentium microprocessor, which had a rare mathematical flaw. In each case, it was silly to enrage consumers further.

The apology should be the first thing out of Sony executives’ mouths and the last thing. Amazon just made a mistake by trying to explain what went wrong with its web services business, which crashed and brought down many consumer web sites with it. The Seattle company talked about what brought down its Elastic Cloud Computing service last week, but it took 5,700 words before it finally apologized to consumers.

Sony should also consider giving out credits for various kinds of digital goods to customers who come back to it after the service comes back online. That could take the form of a simple trophy that says, “I survived the PSN hack attack.” Such digital trinkets could cost nothing to distribute, but they could show that the company has a sense of humor and a sense of honor about how customers should be treated.


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  • http://www.facebook.com/people/Thomas-Mc/100001605142837 Thomas Mc

    You'd have to be a FOOL to buy a PS after this.

  • Fatoid

    I couldn't get past the first paragraph – “Gamers are slow to forgive”. And then to justify it by attributing the success of the PS3 on the XBox 360 RROD. Seriously?

  • http://profiles.google.com/mafted Adam Talbott

    I guess I'm one of the few who doesn't see this as Sony's fault, per se. It is the result of punks and adolescent stupidity that the PSN is down, not because of some latent hole in their security. Like they said, this was a highly sophisticated attack, one that took a while to plan – adding to it they said they MIGHT have taken credit card data, they might not have even touched it. Idk.. short version: the media is just annoying..

  • bakaohki

    Gamers are fast to forgive. There, I fixed it for you.

  • http://pulse.yahoo.com/_EN4PD4YSTEVUA3M4QVOUWLI74I Nietzsche is your Savior

    F#*% Sony! They subjected me to Identity fraud/theft! When my financial/credit info is treated so cavalier that deserves a punch in the face….at the least! “The consumer be damned” is the corporate mantra these days and Sony is leading the way! Its all about your money; quality and service are a thing of the past. F@#* off Sony! Forever!

  • http://profiles.google.com/mafted Adam Talbott

    How was it treated badly? It's encrypted pretty heavily.

  • disaster_recovery

    I am a gamer and a Certified Business Continuity Planner. Basically I help business' recover from catastrophic events. This PSN outage certainly defines a catastrophic event. I have a couple of questions.1. Did Sony have a recovery plan based upon this happening?2. If they did have one, what has happened?I am also wondering about two other things: Where the backups of the servers not readable? Did the backups contain the 'hack' into the systems that made them not usable?Most companies the size of and with the resources Sony has would be back in business within hours or at the most within one day.Sony, how about communicating the previous information? The cost of this outage in tangible and intangible value will be huge. The value of a good backup and recovery program is minimal compared to the total cost of this outage.

  • http://pulse.yahoo.com/_JK4257BAI2CNYEPM22JUMG5ZWU First And

    You'd have to be a fool to make a statement like that. See it works both ways :)

  • http://pulse.yahoo.com/_JK4257BAI2CNYEPM22JUMG5ZWU First And

    I think it's obvious these tech “journalist” have been starving for a story like this.

  • Nick Powell

    I am one of those gamers who switched over because of RROD, but not on one machine, I bought 3 xbox 360 and two of them RROD'd, the other lost the pick-up assembly like 90 days out of warranty. Now Microsoft has let me down, and Sony has let me down, and Nintendo sucks, and Apple is tracking me, I say its back to hitting rocks with sticks…. Revolution!

  • http://profiles.google.com/gljohns1 Gary Johnson

    There will be a press conference tomorrow.

  • http://www.storybytes.com EatingPie

    The failOverflow team actually called the PS3 a “very good, very sophisticated, very complicated security system…” in a presentation of the jailbreak.To say we'd be a “fool” to buy a PS3, along with all the Sony bashing, is being pretty silly. They did a good job of securing their system, but it was hacked (it stayed secure longer than any other console this generation, by a scale of years!). It's not their fault it was hacked. Nor was it their fault the PSN was attacked. And, seriously, compare this to the RROD issue with the 360 — I've been through FOUR 360s! — and you'll see Sony isn't getting a reasonable or fair shake here.I do, however, agree with the article. More transparency is always a good thing. An apology, a plan for action, and a promise of some future compensation all sound like great ideas to me, and might stop people from complaining so much.-Pie

  • http://pulse.yahoo.com/_DRVTGE7KNNE5NXAAQZUMKDVK74 Greg

    So if a car manufacturer sells you a car that cant stop, is it their fault for selling it or yours for not testing the brakes before you bought it. Sony Fault their responsibility to ensure a secure gaming environment. THE PSN should be split into 2 networks Gaming and Financial. that would allow for continued game play dispite the fact that the Store is down. Sony put their greed ahead of overall operation. Less anger would be out there if we could still play our games, I dont care that I cant download a new demo or listen to music. Its common sense SONY gamers want to game, talk to my wife about shopping.

  • http://profiles.google.com/gljohns1 Gary Johnson

    However, this will not damage the PS3 in any way. I have an XBox but I simply prefer my PS3 over the XBOX even with this fiasco.

  • http://profiles.google.com/unclewobly Marshall Moseley

    Encryption is irrelevant if the encryption key is inadequately protected. From what I've read it was. The problem here is that sony didn't have any meaningful protection between the PS3 and the server, assuming that the security built into the PS3 was adequate. The obvious hole here is that a hacker has complete and utter physical access to his PS3, so the real security has to start to come between the PS3 and the server. Once he overcomes the PS3 hurdle, he is free to do as he pleases, including searching through billing software to references to the encryption key.

  • http://www.facebook.com/people/Sean-Thompson/59700496 Sean Thompson

    Yeah this whole situation sucks, and surprise surprise, Sony is handling about as well as the Japanese government has handled Fukushima. But the rhetoric about this story is getting ridiculous. Lets put this into perspective. I'm a loyal PS owner and even after this, there is NO WAY I would think about buying a X-Box. I don't care, yeah it sucks the network is down but what are you going to say? “You suck Sony, I hate you for providing me with this FREE service.” It frustrating, but its not going to make me convert and get nickeled and dimed by Microsoft. Ok so maybe the hackers got my credit card (even though nobody had been able to prove this, but better safe than sorry). That sucks too, but seriously, it not the end of the world. You get a replacement card and keep going on with your life. Credit cards get stolen from big companies every day. Hell a couple years ago my own BANK got hundreds of thousands of cards stolen from their database. The BANK. If hackers can infiltrate the systems of the banks themselves, it can't be that hard to crack the PSN. If they want to crack a network, they will find a way to do it. If I had to guess, this was someone holding a grudge against Sony. And if they wanted to attack Xbox live, you better believe they could damn sure do it. Dont act like Xbox live is not susceptible to the same threats. you would be kidding yourself. So stop shitting yourselves people. This shit happens everyday. Lets just be patient and hope thing are back to normal soon.

  • brookafish

    The first next gen console I played was the 360. I liked it but because of the RROD problem so many of my friends were having, I decided to wait for the ps3 to come out and bought it instead. I still wont buy a 360 for the kids, even though they want one, because i think 360s are unreliable.

  • http://profiles.google.com/haripryce C Young

    I agree…Every console manufacturer this generation and many software companies have ripped off the consumer in a shameful fashion. From overpriced DLC to heaps of shovelware to broken promises to shoddy hardware to consumer fraud exposure…Jeez.Maybe it's time to find a new hobby.

  • brookafish

    Sony took an aggressive stance against Hackers and Jailbreakers, which was their right, but if they were gonna do it it, they should have been more vigilant and better prepared for an attack. People were accessing their trusted network since March 30th and there were tutorials on the web explaining how to do it at least as early as April 7th. It took 10 more days for someone to figure out how to get consumer data, two days for them to get it, and six more days for Sony to let us know it had been taken. Short version: Sony should have seen it coming, should have reacted quicker, and should have let us known sooner, so yeah, I blame Sony.

  • http://pulse.yahoo.com/_6JAQKIGA7BLMNWPGAJKNPLDFT4 Joseph D

    XBOX 360 = FAIL (RRoDs suck)PS3 = FAIL (getting your info hacked due to lack of security is unacceptable)Wii = FAIL (no HD and lack of hardcore games)PC/Mac = WIN (DirectX 11 and a network that DOES NOT GO DOWN FOR SEVERAL WEEKS)

  • http://www.geekrevolt.com/ DeShaun Zollicoffer

    I'll just paste my comment from a site that linked to this.”I really think people are blowing this out of proportion. The truth is, by the time the holiday rush comes, most gamers will have forgotten about that time PSN was down. Some of these articles (not talking about this one) make it seem like PS3s are exploding and kicking babies. It's only PSN…”

  • Tim_the_Magician

    Sony's issue appears to be a flaw in their security architecture. If this was simply a matter of rebuilding a few servers from backups they would already be back online. Reengineering their security model takes quite a bit longer.

  • http://profiles.google.com/philipgjoubert Philip Joubert

    They manually shut down the servers to prevent further attacks. They can be online at any time if they choose to do so.

  • http://profiles.google.com/philipgjoubert Philip Joubert

    They manually shut down the servers to prevent further attacks. They can be online at any time if they choose to do so.

  • Jen_Stekkinger

    You need to get your facts straight. First off X360 has been for the past 2 years the leader in market share for game consoles. Xbox might have gotten a slump in business from bad boxes, but that's not the reason why consumers bought Sony. Lets face it, Sony is a major worldwide BRAND. Most people who buy Sony buy it beacuse they liked the performance of their previous model. Maybe you were to young to remember but I personally had the first PlayStation and it was awesome. For all we know, Microsoft or Nintendo could of hacked Sony. I personally dont think Sony sabotaged their own business at 10 million dollars a week. The free network play. With the launch of Kill Zone 3 in 3D/ bluray on a dedicated server, I'm in game heaven I'm not going anywhere…looking forward to what else Sony has in the pipeline

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