The PlayStation Network (PSN), and later the XBox Live network, were attacked by hacking groups FamedGod and Lizard Squad on 24 August, according to official statements. Both networks suffered distributed denial-of-service attacks (DDoS), which deny service to users by flooding and eventually overloading servers with junk packets and other fake traffic. Given the rudimentary nature of these attacks, account and credit card information were not likely at risk.
The attacks started on PSN, but eventually the hacking groups tweeted that Xbox was next. True to their word, Xbox Live experienced problems shortly thereafter.
Concurrent with the DDoS attacks, the Lizard Squad has been implicated in a bomb threat on a flight that the president of Sony Online Entertainment, John Smedley, was on. The plane land safely and Smedley is just fine.
Despite the waves created by these hacking groups, DDoS attacks and false bomb threats constitute little more than an inconvenience to users. For many of us, it gave us an excuse to make a quick trip to the 7-11 to restock on Cheetos and Mountain Dew. Service was restored to both networks by Monday, 25 August. Except for teh giggles and trolls, the motivation for these attacks remains unclear.