President Barack Obama said the US will respond to the cyber assault launched against Sony Pictures Entertainment by alleged North Korean hackers but said the response will not be made public.

Obama said the US will respond to the cyber-assault in a place and time and manner that it chooses. He did not specify how the US will retaliate and stressed that the response will be initiated privately.

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While vowing to respond to the cyber attacks, Obama said Sony Pictures Entertainment made a mistake in bowing to the threats of North Korean hackers.

Obama said it was wrong for the American company to cancel the release of its controversial movie "The Interview" just because of the alleged threats against its employees.

The president made his public criticism of Sony as the public calls for retaliation against the North Korean government, which the Federal Bureau of Investigation blamed for the attacks on Sony Pictures Entertainment.

"Sony suffered significant damage. There were threats against its employees. I am sympathetic to the concerns that they faced. Having said all that, yes, I think they made a mistake," Obama said as part of a year-end news conference in Washington.

The US president said cyber attacks are a fact of life especially now that the world is interconnected and technology continues to advance.

But he stressed that the more that companies give in to the threats of hackers the more these cyber criminals will make cyber attacks and make demands.

Sony Pictures CEO Michael Lynton, however, said the company has not given in to the threats of the hackers and has not backed down. He stressed that it was the theater owners' decision to refuse the showing of the film as threats of violence from hackers continue.

Lynton hinted that the film, which is a comedy about a fictional plot to assassinate North Korean leader Kim Jong Un, will be released online via streaming or video-on-demand services.

Tagssony hacking, North Korea Hackers, Barack Obama