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Sony Shares Hit By PSN Crisis, Experts Claim That Sony Ignored Warnings

Jonathan Lester
Games news, Hackers, PS3, PSN, PSNgate, Shares, Sony

Hardware Sales Expected To Drop

Sony Shares Hit By PSN Crisis, Experts Claim That Sony Ignored Warnings

The ongoing PSN server shutdown in the wake of a successful data breach (and subsequent theft of personal information) has hit Sony hard in terms of lost revenue, but has also now hit them where it hurts: their shares. Financial organisations warn that hardware sales may suffer as a result - and much of the shareholder panic is linked to new reports that Sony ignored reports that their servers were potentially vulnerable to attack.

According to the most recent share price information (as reported by Reuters), Sony's shares have dropped in value by 4% on Friday, and financial analysts warn that hardware sales are also likely to temporarily decline due to the knock in consumer confidence.

There is a real concern that trust in Sony's business will decline.

The network business itself still only makes a small direct contribution to earnings, but we see a potential drop in hardware sales as a concern. - Kota Ezawa, analyst at Citigroup Global Markets Japan

The decline in share prices is partly a knee jerk reaction by shareholders due to lost PSN marketplace sales... but the recent public probe into the situation by US Congress certainly hasn't helped matters. Damningly, Information Security expert Dr. Gene Spafford has presented new information to a U.S. House of Representatives’ Subcommittee that suggests Sony ignored several warnings about potential security breaches.

On a few of the security mailing lists that I read, there were discussions that individuals who work in security and participate in the Sony network … had discovered that the network servers were hosted on … very old versions of Apache software that were unpatched and had no firewall installed.

These were potentially vulnerable, and that they had reported these in an open forum that was monitored by Sony employees, but had seen no response and no change or update to the software.

Spafford claims that these reports were made several months prior to the PSN hack attack, and his report is likely to go down like a lead balloon with Sony shareholders and customers alike. Hindsight's a bitch - and we'll keep you up to date with the latest.

Add a comment5 comments
Gunn  May. 6, 2011 at 15:49

Just be glad the data wasn't on a windows server

Martin  May. 6, 2011 at 16:46

Quite. Then the hackers may have gotten *all* of our personal data... Oh, hang on, they already did. Server type is irrelevant when the network design is poor in the first place and not maintained correctly. It's not like this is rocket science either - software upgrades and patching are normal in-life network maintenance activites. Sony should have been on top of this as soon as it was pointed out to them.

Sean  May. 6, 2011 at 18:41

Whats that? Fanboy in 'has no idea what the hell he's on about so makes a random throwaway comment' shocker?


Gunn  May. 6, 2011 at 20:41

Was just kidding, chill out. I've used both servers as managing them is my job, I personally think Apache is securer out the box but both can be very secure, its as Martin said, keeping up with patches and having a good knowledge. It is astounding to believe that the server didn't even have a firewall.

sean  May. 7, 2011 at 10:22

If you're such a roxor elite sysadmin then, I presume you mean, that you're astounded to believe that the servers weren't even BEHIND a firewall?


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