In April 2011, Sony's databases were hacked and private data (including names, addresses, birth dates, and even credit card information) of about 77 million users was breached. This hack was a direct result of Sony's use of outdated security software, and could have been easily prevented.

Sony issued a formal apology and made attempts to offer free gaming to make up for it. And Sony has greatly raised its security-awareness (although, there have been other Sony hacks since then). However, the Information Comissioner's Office (ICO) stated that this isn't good enough.

Sony Computer Entertainment Europe has been fined £250,000. "If you are responsible for so many payment card details and log-in details then keeping that personal data secure has to be your priority," deputy commissioner and director of data protection at ICO, David Smith said. The ICO imposed this fine to show the severity of this security blunder, which is one of the worst there has been.

Sources:
BBC News