Sony's share price down 2.3 per cent after security breach

Will the reputation of the technology giant ever recover?

Shares in Sony take a kicking following the breach of the Playstation Network last month

As Tokyo's benchmark Nikkei index resumed trade after the Golden Week holiday, shares in Sony have fallen 2.3 per cent, and were down more than 4 per cent earlier in the day.

The drop follows the well publicised hacking of both the Sony Playstation Network and Sony Online Entertainment with the services still offline following an attacker breaching security controls and stealing the personal data of 77 million users. It is still unclear as to what the fallout will be from the incident, though Sony has given assurances that credit card details of users are still secure.

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Sony boss Sir Howard Stringer has apologised to users "for the inconvenience and concern caused", saying "I know this has been a frustrating time for all of you".

However, the incident continues to embarrass the company, with a US senator recently demanding to know more details about the attack from Sony. Many are also concerned about what the future holds for the tecnology giant, with one Citigroup analyst in Japan saying "there is a real concern that trust in Sony's business will decline".

Sony has blamed online vigilante group Anonymous for the attack, though the group has firmly denied being involved in the incident.

"Let's be clear, we are legion, but it wasn't us. You are incompetent Sony," said the group's website yesterday. But Sony continues to point the finger of blame at Anonymous, with invesitagations bringing to light a file found on network servers containing the phrase "We are legion"- a moto used by the group.

In a bid to restore confidence to online users of the Playstation Network, Sony has revealed that it will insure each user for losses up to the value of $1 million. The company has also stated that it is in talks with it's own insurers to help pay costs associated with the security breach, with some experts believing payouts could add up to billions of dollars.

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Via: BBC News