What does Sony need to rebuild confidence after #sonyhack ?

Was debating with a few security collegues whether this massive 77 Million + data breech would actually hurt Sony on the bottom line and discussing TJX as a good example where actually as a retail organization the impact may not be that large nor that permanent.

Posting my answer to the Quora question on the same title: Q: what does Sony need to do to rebuild confidence after this massive and potentially avoidable security incident?

A: Potentially not much. As per Howard Stringer Sony are offering:
  • $1 million identity theft insurance policy
  • A welcome back package including a month of free PlayStation Plus membership for all PSN customers,
  • As well as an extension of subscriptions for PlayStation Plus and Music Unlimited customers to make up for time lost

First comment on blog:
  •     Thank you kind sir. Let’s not make the same mistakes again, shall we?
  •     It’s all good Sony. Got tonnes of Single Player trophies waiting to be synced :P

If that is any indicator of the average PSN user they don't really care. If they see some wierd credit card charges they will not be liable anyway. The identity theft insurance will provide some financial recourse to anyone who is a victim of identity theft. The exit costs of moving from the Playstation console, game and friends network to an competitor like XBOX is very high. Sony has excellent lock-in, this will be forgotton about in 6 months except by security people using it in powerpoint decks to get more money.

Case in Point TJX incident 94 Million credit cards stolen

Lets have a look at the share price shall we:
The chronology:  
  • Hackers break in in Jan 2007
  • Discovered and publicy reported Dec 2008 (makes Sony look good eh?)
  • May 2001 Share price has more than returned to pre-incident levels and over the past 3 years considerably out performed the S&P500 (red line)

Lets take a Snapshot of Sony for posterity:
Maybe worth buying some Sony shares....

Related posts:

Like this post? Get updates via RSS or follow me on Twitter @rakkhis

No comments:

Post a Comment

Author

Written by