Sony’s CEO Calls Hacker Attack ‘Hiccup’ in Company’s Online Strategy
bloomberg.com
bloomberg.com
Read Geohot's blog response to the hack, and you'll get a much better read on the problem:
Traditionally the trust boundary for a web service exists between the server and the client. But Sony believes they own the client too, so if they just put a trust boundary between the consumer and the client(can't trust those pesky consumers), everything is good. Since everyone knows the PS3 is unhackable, why waste money adding pointless security between the client and the server? This arrogance undermines a basic security principle, never trust the client.