The PlayStation Network returns, but do you care?

Rm_headshot
Tuesday, May 17, 2011

So...it's back. Over three weeks later, Sony resolved the PlayStation Network outage and turned the lights back on. Mostly. Who's ready to throw their brand-new credit card number into Sony's updated, untested system?

Not me. Hey, I'm happy everybody waiting to go multiplayer in Mortal Kombat, Portal 2, and SOCOM 4 finally gets to scratch their online itch. I also don't doubt PSN has tightened security far beyond what it was. My problem is this: Sony demonstrated an inexcusable reticence when they failed to keep their supposedly valued customers informed in the face of a major data theft.


There's a metaphor in here somewhere....

That's one serious breach of trust. And yet, the conversation mainly revolved around those demanding a little something-something for the loss of a free service and loyalists digging in to defend their platform against fanboy schadenfreude. Both approaches strike me as weak consumerism at best, poor judgment at worst. Yes, hackers created this situation, but Sony's response makes BP's handling of the gulf oil spill look positively heroic. The official company line still demonstrates a head-in-sand mentality. As CEO Howard Stringer put it on May 5, "To date, there is no confirmed evidence any credit card or personal information has been misused."

Well, allow me to introduce myself. My name's Rus McLaughlin. Someone stole, then used my credit card and personal information in the wake of the PSN breach. I have no proof that the two events are related, but based on how Sony tackled this mess, who do you think I'm going to blame?

 

Take a look at the timeline. The network went down on April 20 without explanation. Two days later, Sony announced (via the official PlayStation Blog) that they pulled the plug themselves due to "an external intrusion on our system." Four days later, on April 26, the story changed:

"We have discovered that between April 17 and April 19, 2011, certain PlayStation Network and Qriocity service user account information was compromised."

Except the big attack actually hit on April 16 and encompassed Sony Online Entertainment's servers as well. Worst-case scenario? A criminal owned your name, password, address, email, birth date, phone number, and credit card information for 10 days before Sony said anything to anyone.

Now, if anyone at Sony even suspected their customers' information was loose in that week between the shutdown and the blog post announcing the theft -- and you have to wonder why they'd turn PSN off if they didn't -- that could be aiding and abetting, and criminal charges might follow. Otherwise, it really took them 10 days to figure out they had a problem, which doesn't exactly fill me with confidence in their ability to protect anything. The Japanese government still won't approve the PSN relaunch in their territory. They're not convinced, either.

That's where the real trouble begins. I wouldn't mind so much if Sony took all the damage for what they did and how they did it, but that's not the way things will play out.


Only once Kevin Butler sacrificed Marcus on the altar of blood were the PSN gods appeased.

Yes, we've seen reports of PlayStation 3 trade-ins rising sharply, class-action lawsuits are already filed (a drop in the bucket if widespread credit fraud does come to light), and Microsoft couldn't resist tagging downloadable content with "Get it first on Xbox Live!" labels just to turn a few screws. I'm far more concerned by the shift in software sales and preorders, which crash-dived on PS3. Cross-console publishers won't mind so much...that money largely shifted to the 360 releases. Developers who threw their support behind Sony -- particularly those specializing in downloadable games exclusive to the PlayStation Store -- must be nervous. Their revenue dropped to zero for the last month. By the time the store comes back online, their audience may have moved on...assuming they're not still resentful.

While I genuinely feel for those guys, I'm not about to give Sony another crack at my Visa card. My confidence in them is shot -- not so much around security issues but in their transparency. I now know they won't tell me when something's wrong. They even left millions of customers hanging for two days, wondering why PSN didn't work anymore. Since that's the level of consideration they're willing to show me, I'm pleased to return the favor.

If others share my level of consumer confidence, that month-long outage might be the tip of a much longer drought for innocent developers like Hothead Games, Eat Sleep Play, and Q-Games.

Ah, but now Sony wants to kiss and make up with their Welcome Back Appreciation Program, the tribute demanded by the "gimmie-gimmie" crowd. Offering free downloads of past classics like Infamous and Little Big Planet would've carried more weight if I hadn't already played them to death years ago. You also get a free month of PSN Plus, the premium service nobody cares about. All the Plus benefits vanish once your subscription lapses, so call it a free preview rather than a reward for loyalty. Here's the funny part: odds are claiming this fairly cheap gift basket will require you to input a credit card. Nice way to win back customer loyalty, eh?

I just hope somebody's smart enough to make sure the free PSN Plus preview doesn't auto-renew by default, or a month from now the scandal will be how Sony showed "appreciation" by scamming returnees into paying for subscriptions they didn't actually want.


There you go...all fixed! Woot!

But really, Sony's missing the mark with appreciation. They should grovel. They should pray. Customer data is still out in the open, and their welcome back feels like a bone thrown to loyalists rather than genuine penitence...and that's what I want. Sony Executive Deputy President Kazuo Hirai, in a video released on the PlayStation Blog, assured the PlayStation nation that "we will do everything we can to regain your trust and confidence." It's tempting to suggest he start by resigning. I want the people who made these decisions gone, but not if they're replaced by others who will repeat the same mistakes.

Look...security fails sometimes. We accept a certain amount of risk when entering personal information into an online database, but we do so under a good-faith agreement. They guard our information to the utmost and, should the worst happen, notify us immediately of any danger. One way or another, through incompetence, inability, or intention, Sony didn't follow through on that contract. Those who made the decisions must explain and answer for them -- and guarantee they'll do better next time to get right with me.

Oh, eventually things will settle back down to the status quo. People forget, expediency takes over, routines re-establish themselves. As a species, we just don't learn very well. But I've got a pretty good memory, and my forgiveness costs more than $40 in old games. I like the platform and all the very cool things it offers, and it's nice the PlayStation Network's back so people can enjoy it again. But for me personally? Nope. Don't care.

 
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Comments (26)
Default_picture
May 17, 2011

You mention that, "It's tempting to suggest he start by resigning. I want the people who made these decisions gone, but not if they're replaced by others who will repeat the same mistakes."  However, at the time that Sony implemented the features of the PlayStation Network, Hirai was not in power.  Kutaragi was.  It wasn't until after the launch of the PS3 that Hirai replaced Kutaragi as President of SCEA and 2007 when he replaced him as CEO of SCEI, what I would gather is long after the setup of the databases for the PSN 

Rm_headshot
May 17, 2011

All true, but I'm not complaining about the database setups, or the PlayStation 3 as a platform (I'm actually jockeying to see the Uncharted 3 presentation at E3). This is about Sony's response, and as the newly-minted #2 guy for their game division (he's supposedly going to succeed Stringer in a few years), Hirai was almost certainly at the center of those decisions.

It's actually fairly common for high-level executives to resign in Japan after scandals like this...that none have offered to speaks to how much Sony's downplaying its seriousness. Honestly, I don't need Hirai's head on a metaphoric spike, but some sackcloth and ashes wouldn't come amiss.

Default_picture
May 17, 2011

It wasn't just Sony that said there's no direct proof that PSN credit card information was compromised, major banking institutions have come out and said there's no evidence that it happened. According to Sony, the credit card information was encrypted as well.

Most people I know with PS3s are pretty happy the system is back up, and most are willing to give Sony a chance to make things right and shore up their defenses to stop this from happening again. If anything, they've been burned, and they're not going to easily allow that to happen again.

Chances are pretty good as soon as the PS Store is back up and running, I'm going to plug in my shiny new credit card number so I can buy stuff. If I refused to give my information to all companies who have had things like this happen over the years, the list of places I would be able to shop at online would be considerably shorter.

N27502567_30338975_4931
May 17, 2011

So your only evidense that your credit card fraud is related to the PSN breach is timing? How do you rule out the thousands of other was credit card numbers are stolen every single day? It's nice that you've got a scapegoat for your anger, but try and remember you don't actually have any proof these events are connected and we have lots of proof they probably weren't. And think about this, for all you know some other company actually exposed your card number and they haven't given you any warning whatsoever, if they even know! In any case, you should be well protected by Visa's 100% fraud protection gurantee.

Rm_headshot
May 17, 2011

You're right...I don't have proof that my information came out of Sony's database. But I do know that my wallet was not lost or stolen, there's only a small number of places that have both my credit card AND my home address, and only one has recently announced a security breach. Yes, that's circumstancial...but it does narrow the list down considerably. Almost to one, actually.

How do I know the thieves got both my card and my address? Well, the genius who used my card sent a care package to a buddy of his in prison using a website that specifically caters this service, and they sent the invoice to my house. And it's got his name on it. Yeah, there's a reason the jails are overcrowded.

And to you last point...I'm not worried about my credit rating, frankly. My credit union was on this very quickly. I really don't blame Sony for getting hacked. Sure, their security could've been better, but so could everybody's. The breach absolutely was not their fault. Their response to the breach, however, was.

Anybody catch Stringer's testy denouncement today? Hm....

Img_20100902_162803
May 17, 2011
I kind of want to know more about your cc being stolen. You touch on it, but do not follow through with details. I thought you were going to go all Nixon on us and show on how you spend your money.
Default_picture
May 17, 2011

If those harboring resentment towards Sony were only concerned with the response, I'd be more sympathetic towards their plight. Of all the charges, real and imagined, leveled at Sony, their lethargic response is indefensible.

But that's a minor trangression. I submit that, were it another company, they'd be scolded and forgiven. What this speaks to is a greater, pathological hatred of Sony, originating from their treatment of hackers, among other things. It still boggles my mind that geohot, of all people, would rebuke Sony for getting breached. I realize geohot had no direct responsibility for the hack, but these are fellow travelers. Seems as disingenuous to me as Anonymous complaining that a “member” doesn’t represent them (when their membership policy speaks otherwise).

Rm_headshot
May 17, 2011

I hope you don't mean I have a pathological hatred of Sony...seriously, if they'd stop giving me so much materal, I'd stop picking on them.

And as for Anonymous, screw them.

Default_picture
May 17, 2011

Nope. Of all the criticisms I've read of Sony, yours was the most nuanced (even if I disagree on a few points). I'm just generalizing based on all the feedback I've gotten from friends and critics. Most fall under the "gimmie-gimmie" crowd, pirate much of their content anyway (employing a never-ending list of justifications), and won't be satisfied till Sony goes bankrupt. That's what I mean by "pathological hatred."

Shoe_headshot_-_square
May 17, 2011

Hey guys, Rus wasn't around to fix it, but we tweaked the wording in his story regarding the credit card theft. His original words did make it sound like they're connected, but no one has proof of that, so we changed it. Sorry about that!

Default_picture
May 17, 2011

The only reason I care? Portal 2 Steam linking. I was finally able to use that card in my Portal 2 box.

I'll care more when the PSN Store comes back up and I can buy FF4 and Threads of Fate. Other than that, I don't play online, so not much impact on me.

Default_picture
May 17, 2011

I'm glad that I only have an XBOX Live membership, but the whole mess with Sony is just difficult to adjust to. This console hacking problem caused more sabotage than anyone expected and it's really hard to rebuild that trust after such a break-in.

It's really upsetting that Sony was blackmailed by hackers in such a situation and honestly, I wouldn't know whether to trust Sony anymore. They certainly should have known better to beef up their security. In this case, the incident makes Microsoft look like it has a better quality service for the membership price, and it really turned Sony into the black sheep. I suppose in the next few months, we'll see if anyone wants to still buy games from the network.

Rm_headshot
May 17, 2011

I'd be surprised if there isn't some spillover to Xbox Live, but EDGE's article (which they admit is far from scientific) suggests that Sony's lost business headed in Microsoft's direction. Either way, whatcha want to bet MS immediately ordered a thorough security review?

I thought the blackmail thing was debunked? Or maybe the debunking was debunked? I lost track.

Default_picture
May 17, 2011

Oh, it was? I wasn't keeping track. I have no doubt that Microsoft ordered an immediate security check. After all, with Sony down, the power of Internet gaming was pretty much in their hands. Sort of like that Nintendo motto, except that Nintendo has no Internet power.

Bah, I went on too many tangents. Anyhow, I'm glad that the blackmail rumor was debunked. That rumor sounded very fishy in the first place.

Jamespic4
May 17, 2011

@EK Ewww! Don't buy Threads of Fate! (Do buy its soundtrack, though.)

Wile-e-coyote-5000806
May 17, 2011

I may be wrong about this, but I believe the PS+ stuff does not all go away when the membership expires.  As I recall, the free downloadable games will go away, but the free avatars, themes, DLC, etc. are all kept even after the subscription ends.  Not to mention the discounts that PS+ members get on some things.  Also, I believe the five games that are being offered as "pick two for free" with the "welcome back" package are not part of the PS+, but rather a separate offer for all existing PSN accounts, and so will not expire.

Rm_headshot
May 17, 2011

I think that's pretty much correct...if that was unclear, I'll claim it was due to space on an already-lengthy article. The Plus tryout and the free games on offer are completely seperate, and don't follow the same rules.

Me04
May 18, 2011

Sometimes there are also PS+ games which Sony lets you keep forever, but more often than not they're tied to the subscription.

Blog
May 18, 2011

It's very strange the way people have reacted to this. If I leave my door unlocked tonight and someone steals my TV I wonder if someone will blame me. No, that's not even quite the appropriate analogy.

We've discovered that while they clearly needed new security, the early testimony about the security breach was exaggerated hearsay that was, in some cases, disproven.

Beyond that, we ought to remember that they did have security and people worked very hard to subvert it. They weren't the only people hacked in the last month either, they were just the ones most willing to take a PR hit to get things fixed.

Sony was attacked by another group. They were attacked illegally. I know we're in murky water when dealing with the digital/tech world, but I hope we can all agree that even if you leave your door wide open (which isn't what they did) it's not ok for someone to come in and take things.

When someone sees a locked door and willfully smashes it down it's pretty much time to point the fingers at the people who broke the law. That wasn't Sony. Sony took a PR hit and a financial hit in order to take down, repair, test and restore their systems. Its the kind of thing you hope someone will do when they're faced with the unexpected.

Should they have assumed that human beings would behave in the worst possible way? Sure, I guess. In that regard they failed. But they didn't break the law, they've made a pretty good faith effort to repair and ammend. They've offered identity protection for free, they're offering other premium services for free--and on top of all that they're apologizing for being attacked.

I wish more people handled this the way Randy Pitchford did--which is to say with the perspective we would all hope someone would handle things with if WE were the ones suffering an attack from an outside criminal force.

Wording change or not, this article is mildly irresponsible. It puts too much focus on Sony as complicit--when they are actually victims. Why isn't this article a tirade about hacking, theft and false consciousness? Each of those things are more responsible for this than anything. Why? Because as long as we point fingers at Sony and make them the villain in this, we're basically saying, "steal what you want as long as you do it to someone I can turn my nose up at." It allows you to point at Sony and blame them for your lost credit card information--instead of pointing at the actual thieves.

It's irresponsible. More irresponsible than Sony's security troubles. Why? Because Sony was trying to be responsible and failed. This article sets out to point at the wrong villain from the start.

Am I frustrated that my account might be compromised? Sure. But I'm frustrated with the criminals who did it and the false ideals they hide behind.

Rm_headshot
May 18, 2011

You're right, your analogy isn't quite right. Try this one;

Your bank, which isn't FDIC insured, is robbed and all your money stolen. But the bank doesn't actually tell you this...maybe they're worried about losing customers (re. investors). But in any case, you go about your life, writing checks for groceries, rent, maybe you're trying to buy a new car or a house, maybe you're just paying bills, unaware that your money isn't there to cover those payments.

Sony is that bank. If you want to talk irresponsiblity, take a closer look at them.

And y'know, we all talk about credit card theft because that's the big, sexy, easy-to-understand aspect of this whole thing. Certainly, that's a serious issue, but there's also the far stickier issue of identity theft to consider...we likely won't know how far and how deep that will go for a few years.

Shoe_headshot_-_square
May 18, 2011

Steven, you might dig this story: http://bitmob.com/articles/criminals-derserve-the-blame-in-the-psn-debacle.

I see your point, but I don't think that's actually Rus's point. But he explains it better in the reply below.

Blog
May 18, 2011

That analogy's not quite right either Rus. Sony is not a bank. Sony is not a financial institution. Even if you just have a few hundred dollars in your bank account it's likely that your bank is reinvesting that money, putting it to use making them MORE money. They are then more culpable for what happens to your funds. They have access to them at all times. Sony does not. Sony wasn't playing with your money and then hoping no one withdrew everything at once. They just stored your information.

 

The PSN is a free and optional service for most of the 77 million users (or whatever the number is). Some of us pay for Playstation Plus, but most accounts are probably still free. That means that Sony has no more access to our credit card information or our funds than, say, Amazon.com (who has also been hacked plenty of times with far less venom).

 

On the other hand, a place like PayPal has access to credit cards, bank accounts etc, and there are false charges made there all the time (I had a phantom six dollar charge just a few weeks ago). They actually ARE a financial institution with access to real funds. They still have little enough security that false charges happen daily. PayPal is still a respected and widely used means of funding on the internet. They have hiccups constantly though they are built to BE a financial institution that's secure.

Sony is a game company and thus they aren't likely to be quite as prepared for financial attacks as a bank should be. For that matter, they ARE insured (at least at the personal level). You see, if they WERE a bank, they would be a bank offering identity theft protection (which will amend those costs) and reimbursement. Despite the fact that they weren't the criminals here they are STILL trying to repair the rift and take care of their customers--making all 77 Million free accounts suddenly a financial drain all in the hopes that they can repair damage that was done, not by them, but by an outsider.

 

As a final thought (since we can agree by now that the Sony is a bank analogy is pretty far off): One of the big complaints has been that they knew accounts might have been compromised for too long before they addressed the issue. I'm willing to go along with that--but I suspect that there are dozens to hundreds of minor hacking attempts and successes every day. Some of them probably more successful than others. I wonder if every company reported every hacking attempt if we'd be hearing that our information is potentially compromised ten times a day by every institution we've ever shopped with on the internet.

 

I don't KNOW if that's the case, but to think that Sony didn't report the damage the minute they confirmed it seems counter to the way they've handled everything since. Do we know for sure that Amazon or PayPal (etc) is reporting every single potential breech? Or do they only wait to report the big ones when they're confirmed? Are we holding Sony to a higher standard because, well, they also took away our online gaming for a few weeks?

Scott_pilgrim_avatar
May 18, 2011

"Sony's response makes BP's handling of the gulf oil spill look positively heroic."

Now, I've been grading final essays all week, so I'm gonna go all English teacher on you! I think you lose a lot of credibility with a remark like this. You place yourself amongst those approaches that strike ME "as weak consumerism at best, poor judgment at worst." I mean, really? Comparing the PR response to possible (unproven) credit card theft to that of one of the biggets ecological disasters in history seems in poor taste to me.

Default_picture
May 18, 2011

Well, it's sort of a different analogy. I mean, I hope no one gets the perception that a hacking problem causes an ecological disaster, killing many of the fish off the gulf coast. However, I think he's trying to say that the PR response to the credit card theft is similar to BP's PR response to causing a big oil disaster.

The type of disaster is a much different, but the response was just as premature. It made Sony look like a very unreliable company, in the same way that it made BP look horrible.

Scott_pilgrim_avatar
May 18, 2011

It's a very different analogy, which is why I think it's in poor taste. I don't think anyone would get the perception that hacking causes an ecological disaster either. Instead, it's likening a hacking problem to an ecological disaster.

Img_20100902_162803
May 18, 2011
My point of the view of the sony situation was bad customer service. I'm with Rus on this one. They should of immediately confided to Sony PSN users that the info was leaked and cc info was vulnerable.

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