Business

Security Breach hurts Playstation Business

8 Comments 18 May 2011

 

 

Last month the Playstation Network went down.  Owners of the system could  no longer access the online features of the system.  That meant n  online music.  No online video services (Netflix, Hulu, Qriocity, etc).   Most importantly, that meant no online video games.  Anyone that plays video games knows that online gaming has become equally as popular as offline gaming.

Users were understandably upset about the lack of online gaming but they were more upset about something else.  The credit card, names, addresses, and phone numbers  of 77 million people was exposed during the  security breach.  Sony has attempted to downplay the credit card breach by saying that the all important security codes on the back of the cards was not present.

Once the news broke the internet was set ablaze with stories.  There has already been one lawsuit filed and users are expressing disgust with the network.  Since the breach Sony’s stock has slid and its unlikely to recover any time soon.  The Sony PS3 has more than held it’s own against stiff competition from Microsoft’s Xbox 360 and the Nintendo Wii.  Neither of these systems has undergone a major security breach like Sony.

That begs the question.

Will the security breach cause a loss in market share for the playstation?

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