Why do these systems need network access to play a game bought on a disk? That is the bigger question, sure I can understand only supporting multiplayer through a centralized service, my issue is with the activation and phone home crap.
Consoles have long since ceased to be video game players alone.
That is why Xbox Live Status posts a breakdown by services and apps.
It is perfectly possible for activation and content management services to be up while multiplayer gaming is down.
That way the scope of these little disasters would be limited.
The geek needs to remember that he pays a high price for these attacks.
"The Lizard Squad" is a perfect fit for the popular stereotype of the eternally-adolescent-and-irresponsible geek, aka the malicious practical joker, the hacker. Each hack chips away at the geek's credibility and political effectiveness where he needs it the most.