The PlayStation Network issue is a big deal, but the real question is: what long-term effects will it have on Sony and the PlayStation brand?

Well, according to EEDAR analyst Jesse Divnich, while there will most certainly be a short-term effect, Sony should rebound to full strength a few months down the road. The analyst notes that "as the shift to a cashless society continues," security breaches such as the one that hit the PSN "will continue to occur." Essentially, there's just no avoiding it so we all must remain vigilant. He also reminds us that what happened with the Network "happens daily around the world." Here's the official EEDAR statement on the matter:

"We are saddened to hear about the recent events with Sony’s PlayStation Network. What happened to Sony could have happened to anyone one and we believe Sony will continue their vigilance in restoring the PlayStation Network. In addition, we believe Sony will continue to provide full transparency to consumers as to what personal information has been compromised in addition to providing information on the steps consumers should take in order to secure the compromised information. To date they have gone above and beyond their legal requirements on keeping consumers informed and this is something we should all appreciate in light of these events."

Now, as far as impact on the PlayStation brand and its platforms, Divnich believes in the short-term, software and digital purchases will be negatively affected but as time goes on, he sees "no cause for concern for Sony or third-party publishers." Here are a few bullet-points to take home with you:

— EEDAR believes that sales levels for software and hardware will return to normal within a matter of months. It is assumed that Sony will make great efforts to restore the consumer confidence of the PlayStation Network.

— EEDAR expects to see Sony dedicate greater resources to the PlayStation network and the online experience as a result of this event. This may include providing additional exclusive content in order to restore consumer confidence.

— EEDAR does not believe that this security breach will have any long-term negative economical impact on the PlayStation Network environment.

And one last thing- Divnich cites the "Red Ring of Death" problem with the Xbox 360 – an ongoing hardware issue that lasted for years – as proof that consumers are forgiving. Yeah, well, can't argue with that. Consumers would have to be forgiving in the face of a 1-in-3 hardware failure ratio; the 360 pulled through just fine, didn't it?

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Vivi_Gamer
Vivi_Gamer
9 years ago

It's not over yet, PSN still is not online…
But I won't say that I have been put off, It'll be the same as normal i hope…

Underdog15
Underdog15
9 years ago

It's nice to have an high-end analyst reinforce my feelings on the issue.


Last edited by Underdog15 on 5/3/2011 9:41:43 AM

TheHighlander
TheHighlander
9 years ago

Indeed Underdog.

Paradoxically, we may see Sony and partners bring even more content to PSN after this in order to solidify the service as an attractive offering. But also, as this analyst suggests, Sony will devote a lot of effort into making the platform secure, and re-testing and enhancing that security going forwards. I suspect that in fact, security may become one of their primary concerns in future – especially as the law in most countries hasn't even figured out the e-commerce of the 90's never mind that of today.

Beamboom
Beamboom
9 years ago

@High: "security may become one of their primary concerns" – I agree, and it's about time if you ask me.
There can only be good things out of this, as long as none of us, the users, have to pay for their earlier mistakes/flaws/sloppyness/whatever-you-like-to-call-it. PSN could quite possibly become one of the safest of these kind of networks now!

@Underdog: And I don't think anyone doubted that there would be few long term effects of this, Underdog. That was not the topic of the discussions earlier. What we discussed (if you refer to our discussion) were the degree of responsibility here.

@all ๐Ÿ™‚ : Dunno about you guys but I am going to celebrate the return of psn by shopping at *least* one game from the psn-store, when it is back, just to toss in my support for Sony. ๐Ÿ™‚


Last edited by Beamboom on 5/3/2011 10:20:22 AM

Underdog15
Underdog15
9 years ago

I know, Beamboom. I wasn't referring to discussions. It was a pretty open comment not directed towards anything in particular other than what the article was about.

TheHighlander
TheHighlander
9 years ago

BeamBoom,

What I was meaning with the primary concern wasn't that security isn't already a major concern for Sony. More that it now becomes a board level concern. By making it a board level concern, I'd hope that will mean that even though security is a pure cost, it will be better financed and given a stronger voice in decision making. Operationally, I think that security is already (and was) a primary concern for SOE and SNEI. But these events will drive the importance of security up to the board level – which is important. Most organizations have a CIO, but very few have a Chief Information Security Officer, the CIO is supposed to wear two hats. By splitting that responsibility at the board level, Sony is giving a very strong voice to someone who's only focus is the security of their systems.

Beamboom
Beamboom
9 years ago

Alright, cool ๐Ÿ™‚

Beamboom
Beamboom
9 years ago

There is something weird going on with the comment field nowadays. The "ok cool" was posted after Underdogs post, then Highs post get tucked between those, and it all get me utterly confused.

Underdog15
Underdog15
9 years ago

I saw that happen yesterday too. Weird.

Killa Tequilla
Killa Tequilla
9 years ago

To date they have gone above and beyond their legal requirements on keeping consumers informed and this is something we should all appreciate in light of these events.

Beamboom
Beamboom
9 years ago

Ok that reply was originally attached to another post ๐Ÿ˜€ Not yours, Tequila.

Beamboom
Beamboom
9 years ago

… And the reply above was supposed to be after the one below. ๐Ÿ˜€

Beamboom
Beamboom
9 years ago

Speaking of annoying net hacks, can't you do *anything* to get rid of these suckers? It sure would beat adding a scroll window to the comments… ๐Ÿ™‚

Playstation_Fan
Playstation_Fan
9 years ago

Ok this is off topic but i heard psn in japan is up and u.s/ euro regions go up today anyone kno if this is true ?

Beamboom
Beamboom
9 years ago

Not up here in europe yet at least.

TheHighlander
TheHighlander
9 years ago

Personally I tend to agree with this analysis. In the short term it's very embarrassing, but long term this hardens Sony's systems against future attack, and it makes customers aware that no system is truly secure and they need to be careful.

Personally I also hope that this awakens law makers to the importance of platform security in the digital economy. I'm referring to things like encryption and hashing algorithms. There needs to be a level of regulation of these things that places a requirement on service providers to use at least a certain minimum standard for encryption and hashing, a standard that is updated regularly based on developments both in technology and cryptographic approaches. The law also needs to be tightened up regarding system abuse and hacking. It's all jolly fun until something goes wrong. While I am not entirely sure that custom firmware played a direct role in this hack (although it's possible), the digital economy cannot work without some method for securing the delivery of items and protection of transactions at the client. So breaking the encryption used to protect a platform client presents a clear danger to the digital economy.

There are lots of aspects of this, but in truth our legal structure is not built to handle the digital economy or the technology that moves it. As we move forwards, that has to change. There need to be stronger obligations on platform holders/ service providers, just as there needs to be legal protection of the platform security, making breaking platform security an offense.

Hackers – the kind that do it for a hobby and proclaim their interest in Homebrew and Linux – will have to find other ways to satisfy themselves. Their hobby is not particularly compatible with having secure platforms in a digital economy.

I have a feeling we're in for a long few years while the law catches up.

WorldEndsWithMe
WorldEndsWithMe
9 years ago

Homebrew hackers should just be happy that they will always be able to use Microsoft platforms for their needs.

jaybiv
jaybiv
9 years ago

Sony's crisis plan starting with the Q&As 'til now has been exceptional. The giving up tons of free groceries to thank us for sticking with them will go a long way to soothing any ill will customers had for the outage.

WorldEndsWithMe
WorldEndsWithMe
9 years ago

They're giving us food?

Lord carlos
Lord carlos
9 years ago

Step 1:Rebuild playstation network.
Step 2:???
Step 3:Profit

Clamedeus
Clamedeus
9 years ago

Step 2 would be to play. ๐Ÿ˜‰

Beamboom
Beamboom
9 years ago

I think it is obvious that they are right in their "analysis". It's a safe bet. Just think of all the stupid mistakes large corporations have done over the years. Toyota with their car that could flip during quick turns springs to mind. They are still the largest(?) car manufacturer in the world.

Consumers generally do not "care"/understand about the more advanced issues, they forget and keep buying. This is why such a huge responsibility rest on the corporations shoulders.


Last edited by Beamboom on 5/3/2011 10:09:13 AM

WorldEndsWithMe
WorldEndsWithMe
9 years ago

Mr. Divnich is probably right, once something is out of the news these days people just forget it ever happened. "There was an oil spill?"

Here's hoping Sony recovers very quickly so we can get back to talking about the games we all want to play and can get off this latest fanboy bandwagon.

Beamboom
Beamboom
9 years ago

Hehe – exactly. What oil spill? ๐Ÿ™‚

Yeah I can't wait to get back to disagreeing with you all on game discussions again. ๐Ÿ™‚

WorldEndsWithMe
WorldEndsWithMe
9 years ago

Bring it!

Beamboom
Beamboom
9 years ago

It shall be brung! ๐Ÿ˜€

BikerSaint
BikerSaint
9 years ago

bigrailer19,

Yeah, I saw a couple of diffrent articles staing that 1 in 5 PS3 owners are selling & switching over to 360's too.

But I think the only one's that are actually leaving the PS3 are those with a 8 year old's twitcher mentality.

So I say let them freaking leave, cause we certainly don't need any of their usual Xbox trash-talking, racist-garbage, sewer-mouths infecting our network anyway.

"More power to all of the real gamers"

(OK, this is weird, what's wrong with the site tody? This post was supposed to go under Bigrailers, in reply to his post, but got tossed up above his somehow. ???????)


Last edited by BikerSaint on 5/3/2011 12:45:19 PM

NoOneSpecial
NoOneSpecial
9 years ago

As much as I wish people would forget it like you suggest, it won't happen. I have a few friends who are very much fanboys of Xbox and whenever we have a discussion about the latest in video game news, they inevitably turn it into a console war, and their main attack is "PSN sucks."

Sadly, this outage already has become a tool in their argument, and beleive it will continue to be so seeing as they still act like PSN is still as under-developed as it was during the release of the PS3.

I see it everywhere. People seem to take great pleasure in picking on the PS3 for every flaw it may orma not have. This isn't going to go away anytime soon :/


Last edited by NoOneSpecial on 5/3/2011 4:03:19 PM

maxpontiac
maxpontiac
9 years ago

The only people that are concerned over the effects the PSN outage are the XBots and the so-called analysis experts.

I honestly believe the amount of people that leave the Playstation brand over this will be marginal at best.

I am actually glad the PSN went down anyways. I helped me re-discovered why I began gaming in the first place and that's the singleplayer experiences.

Dancemachine55
Dancemachine55
9 years ago

Everything you said Max is exactly how I feel.

The number of people who switch from PS3 to 360 will be minimum at best. And I assume many who do will switch back a year later when they realise Gears 3 isn't enough to satisfy their exclusive needs and Kinect is laggy as all hell.

And the PSN being down has also reawakened my love of single player campaigns. Mind you, I hardly played online in the first place, just warms my heart to see so many suddenly loving their single player games again.

I hope this starts a trend of single player games becoming dominant again. I love a good story.

bigrailer19
bigrailer19
9 years ago

I was reading at Kotaku (for some reason), that they had a poll asking if users of the PS3 were switching consoles. I don't remember the exact percentage but I'm fairly certain it was between 21-31% of people taking the poll said they were switching consoles over this. Take into consideration that poll was conducted by 2000 votes. At that rate (I'll just say 25% to hit the middle) that's 500 people. That's fairly large but there is so many ways to look at this, that poll is completely faulty. How many of those people will actually switch? How many of those readers are regulars at that site and are just spouting off? How many voted 2x? Then you have to think outside the box too.

So I just wanted to point that out. But I agree with you guys in all actuality it will be very small percentage in the end.

maxpontiac
maxpontiac
9 years ago

Dancemachine –

I pretty much played exclusively online, and rarely beat the campaigns anymore because of my drive to play online.

Agree big time. During the PSN outage, I noticed how short the games with multiplayer are, and I would love to see the singleplayer become the focal point.

bigrailer19 –

With Kotaku, I wouldn't be surprised if people just posted that out of spite for the PS3 and/or love for the 360.

bigrailer19
bigrailer19
9 years ago

Max-

Yeah exactly the point I was making. That's why I agree with you guys on the point, this truly won't affect Sony that much.

Phoelix
Phoelix
9 years ago

Also that's not a scientific study, so the results are totally skewed. Since people have to opt in to answering, only the people who feel strongly will take the time to reply.

I find it hilarious that the people who would jump ship are _selling_ their consoles instead of just throwing them away or otherwise disposing of them. If you're really that unhappy, why let someone else use the console?

bigrailer19
bigrailer19
9 years ago

Biker saint-
I don't know wether to reply under this post or the other, to you haha. But yea I completely understand where your coming from, I agree! If this is some sort of deal breaker for these people then so be it. It's frustrating to see people that bent over it, but it's their loss. I mean the 360 can be jailbroken and M$ I'm sure doesn't want that but don't seem to care to do anything about it, while Sony on the other hand doesn't want people messing with the console in that way to help stop piracy. And now theyve been attacked, probably more so because of their stance on hackers than anything, and these people are punishing them. Sony is trying to protect us, YOU as the consumer, but got caught in the middle of what will surely be a long faught battle. I feel sorry for these people with no real grasp of what's going on.

Phoenix- yes it is skewed and it's unfortunate because it's misleading!


Last edited by bigrailer19 on 5/3/2011 1:24:08 PM

Dancemachine55
Dancemachine55
9 years ago

This makes me very happy, very happy indeed.

This Divnich guy is either right on the money or doing a great job appealing to the Playstation fans out there.

Either way, I'm now laughing at my friend's comments of this PSN attack causing the downfall of Sony. It ain't gonna happen, Sony is too big a company to take down with a few network attacks. And like Divnich said, companies get hacked everyday, especially Microsoft!!

BikerSaint
BikerSaint
9 years ago

I sincerely hope that Divnich owns tons of Sony Playstation stock, just so he'll keep on preaching the praise.

(yeah, yeah, I know it would be a conflict of interest, but do you really think that nobody ever does that?) LMFAO

VIVIsectVI
VIVIsectVI
9 years ago

I feel that once Sony is able to get the PSN secure, they need to advertise that and drop the price of the PS3 a bit. That may turn things in their favor with all the bad press going on right now. $279.99 and $329.99 I would think are doable unless they have all new SKUs they're focusing on.

GuardianMode
GuardianMode
9 years ago

What still gets me is all the anti sony raging. They keep on saying its a good thing Sony was hacked and they deserved it because of "Sonys Arrogance." >.> Kotaku and Kotaku.AU seem to be the worst atm.

maxpontiac
maxpontiac
9 years ago

That's why I quit going to that website.

Let the Xbots rage all they want I say. In the mean time, I'll be enjoying all the wonderful exclusives the PS3 has.

People forget that gaming is all about the games!

WorldEndsWithMe
WorldEndsWithMe
9 years ago

If Live went down instead they'd be acting very different.

BikerSaint
BikerSaint
9 years ago

The majority of those tween & under bots have to rage against something other than their truly beloved 3x&up RRODS.

And besides, since there's not that many AAA M$ games, what else is there for them to do with soooo many idle months while not sitting in time-out on their naughty chairs.

maxpontiac
maxpontiac
9 years ago

You know what though Biker? I know of plenty of people in their 30's and 40's who are the biggest Xbots of them all.

BikerSaint
BikerSaint
9 years ago

maxpontiac,

True dat! But those same 30 & 40 something's are still 8 year old twitchers, only they're just masquerading around in a grownup's casing.

Proof????
Just look(& then listen to) the chatter from 85% of the customers at GameStop at any one time.

And that's why I've always been so freaking ecstatic that Sony never includes a mic with every console.


Last edited by BikerSaint on 5/4/2011 4:13:15 PM

Excelsior1
Excelsior1
9 years ago

i think this will huant sony for years to come and they share in the blame. the main thing i'll remember is that the servers that hosted psn were exploited becuase they were not up to date on their security pathces and they lost so much data before sony even noticed.

Jawknee
Jawknee
9 years ago

And what blame is that? How did they bring this unto themselves? Was it when they asked Hotz the first time to stop hacking the PS3? Or was it taking him to court when he refused to stop?

Beamboom
Beamboom
9 years ago

Are you saying they would never have been hacked, or will never be hacked again, was it not for one single guy, this "Hotz"?


Last edited by Beamboom on 5/3/2011 12:27:32 PM

Jawknee
Jawknee
9 years ago

I not sure I understand your question Beamboom. What I am getting at is Sony doesn't deserve blame for being attacked. They were attacked for malicious reasons and who ever did this was obviously out to do one thing. Hurt the Sony's brand. If it was just to steal CC numbers there are much easier targets they could have gone after.

If he's referring the the timing in which Sony notified us of the breach and how damaging it was, they went above and beyond what the law requires. A great majority of the time we hear nothing of CC info breaches until after the dust has settled. Example, MasterCard was hacked and breached, we heard nothing of it until recently. Sony came out within a week to notify people their info "might" have been compromised even though they weren't 100% sure. So the whiners, complained Sony should have told us even if they weren't 100% sure, they did and now they are still complaining. People wanted to know the moment PSN was hacked? Well you cannot expect a company to tell you what they themselves do not know. You don't shout "the ship is sinking!" if you aren't 100% sure of it. It's asinine to think otherwise and I'm especially sick of reading this nonsense from broken records and people who obviously don't have anything interesting to say, so they continue to repeat their nonsense on almost every thread verbatim.


Last edited by Jawknee on 5/3/2011 12:42:10 PM

BikerSaint
BikerSaint
9 years ago

Excelsior1,

Me thinks you're becoming highly-addicted to a serious "Spank the dead horse" fetish.

sawao_yamanaka
sawao_yamanaka
9 years ago

Boy I am glad this is the only website I frequently go to now. To many negative and fanboyish websites have posted about the "end" of Sony.

@Jawknee
Ignore him he has kept posting the same on every post regarding PSNs downtime. I do agree with you if Hotz had stopped from the get-go this never would have happened. He started and his idiotic followers are trying to finish it.