Sony has finally come clean about the "external intrusion" that has caused the company to take down the PlayStation Network service, and the news is almost as bad as it can possibly get. The hackers have all your personal information, although Sony is still unsure about whether your credit card data is safe. Everything else on file when it comes to your account is in the hands of the hackers.
In other words, Sony's security has failed in a spectacular fashion, and we're just now finding out about it. In both practical and PR terms, this is a worst-case scenario.