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I think Sony is banking on being able to put at least a few of the people inolved behind bars or fined to hell. The guy who ended up spending 3 years in jail for having taken the Half-life 2 source code seemed to have decided he had better things to spend his life on for example. And if they succeed the hackers out there will know that yes, they can break the Sony security systems, but they would have to be prepared to go to jail for it.

So from their viewpoint I don't think they are making a major mistake, they are just making sure that everyone knows that enabling piracy and cheating on Sony devices has a cost.