Sony in new customer retention bid

Electronics firm Sony has launched a new customer retention bid by offering free insurance to users of its products against losses caused by data theft, following recent hacking incidents that may have seen information on over 100 million users accessed illegally.

All US-based users of its PSN network will get cover for losses in a policy that may cost the firm up to $1 million (£608,000), with similar schemes set to be offered to users in other countries.

In a blog apologising to Sony users, chief executive Howard Stringer said: "To date, there is no confirmed evidence any credit card or personal information has been misused and we continue to monitor the situation closely.

"As a company we - and I - apologise for the inconvenience and concern caused by this attack.

He added that the firm will be redoubling its efforts to catch the criminals responsible - working alongside the FBI - and improve its security to ensure future hacks are much harder to carry out.

Such customer engagement is the latest effort by the company to limit the damage its reputation has suffered after the recent security breach.

It had already launched a "welcome back" package aimed at avoiding customer attrition through the offer of complimentary downloads and 30 days of free gaming.