After the quick release of the firmware update (version 3.61) late yesterday afternoon, Sony reps advised PS3 owners to download the update and change their passwords to prepare for the online network's eventual return. Hours later, Kaz Hirai, Sony's Executive Deputy President, released a video statement on the official PlayStation Blog announcing servers were back online.
As of this writing, functionality has been restored to all fifty U.S. states, as well as Canada and Puerto Rico. The update restores most of the network's functionality, including online play, Friends Lists, and Trophies as well as Netflix, MLB.tv and Hulu.
Access to the PlayStation Store will be restored by the end of May. Once PSN is fully restored, Sony will announce further details regarding its "Welcome Home" program, which will include free access to PlayStation Plus as well as free "PlayStation entertainment content," which we can only assume means free games and/ or movies.
The new update requires owners to change their PSN passwords before regaining access to PSN.