About 77 million PSN accounts were reported to be hacked.
Sony has agreed to pay a £250,000 penalty imposed by the UK’s Information Commissioner’s Office (ICO) after its PlayStation Network (PSN) was hacked in 2011.
However, Sony reportedly disagreed with the verdict but believed that continuing to fight the case would risk disclosing sensitive security information.
A Sony spokesman said that the decision reflects the company’s commitment to protect confidentiality of network security from disclosures in the course of the proceeding.
"We continue to disagree with the decision on the merits," the spokesman said.
In January 2013, the ICO imposed a fine alleging that Sony had breached the UK’s Data Protection Act and failed to protect millions of PSN users whose login credentials and credit card details had been disclosed.
Following the breach, Sony’s PSN was offline for several weeks, while upon its return, the electronics firm added a welcome back package that incorporated multiple free games and free access to PlayStation Plus.
Gaming firm Nintendo also faced similar issue, when it experienced 15 million hacking attempts and 24,000 breaches of its fan site Club Nintendo in the June 2013.