One of the big selling points for adopting data security tools such as laptop encryption software from AlertBoot is the irreparable public relations damage that comes from having a sizable and significant data breach. But, that's not always the case.
According to psu.com, Sony CEO Sir Howard Stringer has mentioned in passing that "an additional three million PlayStation Network accounts [were added] since the service was restored following the cyber attacks earlier this year." Furthermore, the first non-Japanese Sony CEO noted that "sales are exceeding what we had before the cyber attacks." This is the first piece of good news for Sony. In April, they had to admit to a massive data breach (they claimed that credit cards were encrypted, but some had doubts if this was actually the case). Then, reports emerged that security employees were fired before the breach, further cementing the view that Sony had no idea what on-line networks were about. Then, their insurance carrier sued them, saying that Sony wasn't covered under their insurance agreement for what happened. The house that Akio Morita built couldn't catch a break. Well, it looks like their drought in good luck has ended.
According to psu.com, Sony CEO Sir Howard Stringer has mentioned in passing that "an additional three million PlayStation Network accounts [were added] since the service was restored following the cyber attacks earlier this year."
Furthermore, the first non-Japanese Sony CEO noted that "sales are exceeding what we had before the cyber attacks."
This is the first piece of good news for Sony. In April, they had to admit to a massive data breach (they claimed that credit cards were encrypted, but some had doubts if this was actually the case). Then, reports emerged that security employees were fired before the breach, further cementing the view that Sony had no idea what on-line networks were about. Then, their insurance carrier sued them, saying that Sony wasn't covered under their insurance agreement for what happened.
The house that Akio Morita built couldn't catch a break. Well, it looks like their drought in good luck has ended.
This is not the first time that a company has seen its fortune not reverse after a data breach. TJX, for example, also saw its sales revenue increase after their historical data breach. In fact, I had commented on the TJX results, noting that perhaps due to the timing, the sales increase was more about the recession hitting everyone, as opposed to disaffected clients not caring: For example, take the issue of customer turnover. TJX suffered one of the biggest (or, rather, the biggest to date) data breaches of all time, which was caused in part by their decision not to upgrade their data security. And yet, TJX found that their revenue numbers didn't suffer after the breach. In fact, sales grew, which was contrary to expectations. Many were expecting customers to stop shopping with TJX in disgust. Polls conducted on customers showed an agreement with such assessments. So, what happened? Does this mean customers didn't care about the breach? Study after study shows that this is not the case: people get angry when their information is breached, and businesses have felt the impact of irate customers--with the exception of TJX. I opined a couple of years back that TJX didn't face repercussions because people who already shop at TJX can't stop shopping there--they really don't have options (price and distance...kind of hard to find a Wal-Mart right next to TJX and vice versa. And, if you're shopping at a Wal-Mart or a TJX, chances are you won't be shopping at Target). Being a low-priced behemoth in a 50-mile radius has its benefits. Now, I'm not suggesting that people don't have anywhere else to go for their networked game fix. But, I am suggesting that the 3 million increase in new accounts is not about people voting with their feet. Perhaps there is another explanation. For example, the hacking incident made news the world over, reaching people other than hardcore gamers. Perhaps a small portion of this bigger audience decided to find out what this PSN thingamado is all about. I should point out that it wasn't mentioned how many people PSN lost. Also, how many of these new signups are a) one-time only signups out of curiosity and b) returning gamers who decided to abandon their old accounts? Without seeing such information, it's hard to place a finger on what 3 million new signups means.
This is not the first time that a company has seen its fortune not reverse after a data breach. TJX, for example, also saw its sales revenue increase after their historical data breach. In fact, I had commented on the TJX results, noting that perhaps due to the timing, the sales increase was more about the recession hitting everyone, as opposed to disaffected clients not caring:
For example, take the issue of customer turnover. TJX suffered one of the biggest (or, rather, the biggest to date) data breaches of all time, which was caused in part by their decision not to upgrade their data security. And yet, TJX found that their revenue numbers didn't suffer after the breach. In fact, sales grew, which was contrary to expectations. Many were expecting customers to stop shopping with TJX in disgust. Polls conducted on customers showed an agreement with such assessments. So, what happened? Does this mean customers didn't care about the breach? Study after study shows that this is not the case: people get angry when their information is breached, and businesses have felt the impact of irate customers--with the exception of TJX. I opined a couple of years back that TJX didn't face repercussions because people who already shop at TJX can't stop shopping there--they really don't have options (price and distance...kind of hard to find a Wal-Mart right next to TJX and vice versa. And, if you're shopping at a Wal-Mart or a TJX, chances are you won't be shopping at Target). Being a low-priced behemoth in a 50-mile radius has its benefits.
For example, take the issue of customer turnover. TJX suffered one of the biggest (or, rather, the biggest to date) data breaches of all time, which was caused in part by their decision not to upgrade their data security. And yet, TJX found that their revenue numbers didn't suffer after the breach. In fact, sales grew, which was contrary to expectations. Many were expecting customers to stop shopping with TJX in disgust. Polls conducted on customers showed an agreement with such assessments.
So, what happened? Does this mean customers didn't care about the breach? Study after study shows that this is not the case: people get angry when their information is breached, and businesses have felt the impact of irate customers--with the exception of TJX.
I opined a couple of years back that TJX didn't face repercussions because people who already shop at TJX can't stop shopping there--they really don't have options (price and distance...kind of hard to find a Wal-Mart right next to TJX and vice versa. And, if you're shopping at a Wal-Mart or a TJX, chances are you won't be shopping at Target). Being a low-priced behemoth in a 50-mile radius has its benefits.
Now, I'm not suggesting that people don't have anywhere else to go for their networked game fix. But, I am suggesting that the 3 million increase in new accounts is not about people voting with their feet. Perhaps there is another explanation.
For example, the hacking incident made news the world over, reaching people other than hardcore gamers. Perhaps a small portion of this bigger audience decided to find out what this PSN thingamado is all about.
I should point out that it wasn't mentioned how many people PSN lost. Also, how many of these new signups are a) one-time only signups out of curiosity and b) returning gamers who decided to abandon their old accounts?
Without seeing such information, it's hard to place a finger on what 3 million new signups means.
Related Articles and Sites:http://www.psu.com/Sony-has-gained-over-3-million-new-PSN-users-since-hack--a012741-p0.php