The ICO had found the breach was preventable and Sony should have taken action since the occurrence fell under the Data Protection Act.
Sony said the decision to drop the appeal was not acceptance of guilt but rather to protect disclosure of sensitive data.
"After careful consideration we are withdrawing our appeal, this decision reflects our commitment to protect the confidentiality of our network security from disclosures in the course of the proceeding. We continue to disagree with the decision on the merits,” a statement from the firm read.
The fine is half of the penalty that ICO can issue to defaulters of Data Protection act.
The ICO responded to the decision through ITPRO and said it welcomed “Sony Computer Entertainment Europe Limited’s decision not to appeal our penalty notice following a serious breach of the Data Protection Act.”