Sony struggles to deal with cyber crime

The Playstation network has now been offline since April the 20th. After initially claiming that the service was under maintenance, Sony later confirmed that it had been the victim of cybercrime.

The Playstation Network was breached on three separate occasions and the personal details of up to 77m subscribers have been compromised.

Users are becoming increasingly frustrated with the lack of service and how Sony has dealt with the entire situation. This has had a serious detrimental effect on the Sony brand, which could harm profits in the future.

Sony originally hoped to have the network back online within a few days before setting an extended deadline, which they have now missed. The electronics giant has now admitted that services may not be fully resumed until the 31st of May while they establish a new security system.

The breach of the Playstation Network came at a time when things were already difficult for Sony due to increased competition from companies like Microsoft and Nintendo, as well as price wars in the television and laptop computer markets.

It is currently uncertain exactly how much the Playstation Network hack will cost Sony, but most estimates are in excess of $1bn. This sum factors in lost business, compensation and the cost of setting up a new security system.

However, it is difficult to put a price on the loss of consumer confidence that the security breach has brought about.