Sony said it would resume some services on its PlayStation Network this week and offer incentives to customers to try to prevent them turning to competitors after the theft of personal information belonging to 78 million user accounts. Top Sony executives apologised for the massive data breach at a news conference in Tokyo on Sunday, the first public comments from senior management on the crisis.
"We apologise deeply for causing great unease and trouble to our users," Kazuo Hirai, Sony's number 2 and the frontrunner to succeed CEO Howard Stringer, said bowing deeply three times during a lengthy news conference. Stringer was not at the event.
Many PlayStation users around the world had been angered by the fact that the first warning of one of the largest Internet security break-ins ever came a week after Sony detected a problem with the network on April 19.
The warning that user credit card information might have been stolen also came just hours after Sony unveiled its first tablet computers at an event where executives made no mention of the PlayStation breach.
Sunday's news sparked thousands of comments on the official PlayStation fan page on Facebook, some of them from users who said they would switch to Microsoft's Xbox Live games network.
Sony said it would offer some free content, including 30 days of free membership to a premium service to existing users and in some regions pay credit card renewal fees.
It said compensation would only be paid if users suffered damage. Sony did not elaborate except to say there was no evidence that credit card details had actually been stolen. It has confirmed the theft of names and addresses.
Since the breach, security has been boosted on Sony's computer systems, the company said, adding that enhanced levels of data protection and encryption would be implemented. The US Federal Bureau of Investigation had been asked to probe the breach, Sony said.
"The negative impact on Sony is likely to be short-term, but the industry as a whole will suffer a longer-term impact," said Kazutaka Oshima, president of Rakuten Investment Management.
"I think it will impact Amazon and other e-commerce businesses. Sony might have had some security problems but I don't think they had a particularly big hole."
Peppered with questions about accusations Sony was slow to inform users of the intrusion, a grim-faced Hirai said the company first wanted to know what kind of information had been stolen.
Hirai said he had known about the infiltration when he unveiled Sony's first tablet computers on April 26. "We made the announcement as soon as we could, which turned out to be the day after the launch," said Hirai, Sony's executive deputy president.
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