It looks like its one of the biggest pieces of data theft so far. 70 Million users account on the Playstation Network have been compromised, with the result being that the service has been down for the last 7 days and is likely to be down for a few more days as they try to find out exactly what went wrong, how they got in, what was stolen and how they can patch the system so that it doesn't happen again.
Aside from user accounts, passwords and basic details which are still covered under Data protection, there is the possibility that the Credit Cards associated with those accounts have also been compromised.
Sony's statement here.
I'm now so glad that I never signed up. Although it shows that no system is really safe from a determined hacker, for it to happen to a leading technological company like this suggests there were some bad practices in play.
As for Sony, this is going to hurt any credibility it did have and will severly hurt it when it comes to not only its console but all its online services.