Episode 471: Nintendo’s Lawyers

The patience of PlayStation 3 owners is wearing thin as retailers are reporting a 200% increase in PlayStation 3 trade-ins, usually for Xbox 360 consoles, as well as sales slumps for PSN points cards and fewer multiplatform game sales for PS3.

“In the first week of downtime we did not really see any major change in sales or trades,” says one source, a store manager at a major UK retailer speaking on condition of anonymity. “However from the second week onwards we have seen an increase of over 200 per cent on PS3 consoles being traded in, split almost 50/50 between those trading for cash and those taking a 360 instead.”

Another UK source has reported that the independent retailer had seen a “massive increase” in the volume of PS3s traded in in recent weeks, and has pegged the biggest trade-in demographic as “the hardcore online shooter crowd”, who are logically the group most likely to defect when their online gaming is wiped.

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The Japanese government has not allowed PlayStation Network to be activated for Japanese gamers yet due to security concerns, and now an expert is advising Australia to follow suit.

Professor Bill Caelli told newspaper The Australian, “Why is it that in the IT industry enterprises certify themselves?” said Caelli, noting that PSN didn’t have the same restrictions, and added that the public has “no way of assessing the assurances given by the owners of the (PSN) system themselves”.

Reportedly, Australian privacy commissioner Timothy Pilgrim has been in contact with Sony, and has not judged yet whether Sony has given them enough information to restore PSN. His investigation will be an ongoing one as well, even after PSN is restored.

When it was discovered user information had been stolen during the PSN breach, the Australian federal government announced plans for a law forcing companies to disclose privacy breaches, although it was unclear when it might come into effect. Privacy minister Brendan O’Connor had stated:

“Sony isn’t alone. We’ve seen serious privacy-related incidents in recent months involving other large companies. All companies that collect customers’ personal information must ensure that the information is safe and secure from misuse.”

We’ll stay on this story as it develops.