so i knew something was fishy when psn was down for a few days (just in time for portal 2 btw).
the wording of the statement on their blog is very careful to not admit any kind of error on their part, but here is what we know + some assumptions...
1) passwords were store as un-hashed plain text
2) their dev network was not sandboxed from their production network (unlike xbox live)
3) no encryption (this is a big assumption based on the missing language that would most certainly be included in the statement if data were encrypted)
this is a big deal and inexcusable for a company with the resources of sony.
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