Encryption is not as reliable as many here think when your service needs to decrypt the data often.
Regarding the passwords though, the question is whether the stupidity of Sony reached the levels of storing the passwords in plain text or hashed. Encryption is not important compared to one-way hash function, using which you don't keep the password in a retrievable manner.
While it may seem extremely unlikely that any decent company/web service stores plain texts, lack of any mention in the PR response is seriously thought-provoking.
Regarding the passwords though, the question is whether the stupidity of Sony reached the levels of storing the passwords in plain text or hashed. Encryption is not important compared to one-way hash function, using which you don't keep the password in a retrievable manner.
While it may seem extremely unlikely that any decent company/web service stores plain texts, lack of any mention in the PR response is seriously thought-provoking.