Balb said:
Are passwords encrypted or no?
They can't be, or they would have to be saved with the decryption key.
The industry standard is that the passwords are hashed with individual salts.
This means that there is a secret saved a long with the password. On login you get that secret, combine with your password. Send them a computated value based on that and if it matches the computation on the server you are granted access.
Many companies don't use this. And it always gets known whenever such a leak occurs.
Now we can only hope that Sony does.
The next best thing is a secret that is saved a long with all users, which means finding the password of users is one big computation for all, instead of one big computation for each individual user.
All in total: Change your passwords if you use the same for other services.