What's stupid is Lizard Squad said they'd do this a month ago and sony still wasn't prepared for DDoS. Also, I thought Lizard Squad was exposed by some white hats a few weeks ago? How are they still allowed to operate when everyone knows who they are?

I'd say the most likely possibility is that no authorities have confirmed that those "revealed" identities are correct, and/or linked them to any actual crimes or open investigations. A public accusation isn't actually enough for an automatic and immediate arrest under our* current justice system. We tried it once in Salem, it didn't go well.

*I say "our" going under the assumption that some or all of them are American. I haven't bothered to look up their alleged identities, so that may not be correct.

Other possible factors include:

1. Lizard Squad is made up of more individuals than those identified.

2. Going off of the caveat listed above, some or all of them may reside somewhere where it's not easily possible to detain them.

3. Lizard Squad hires botnets to perform their DDoS attacks for them. It's possible that payment for this was already completed, and the commands issued, before the doxxing occurred.

4. The exposed identities may be wrong. Doxxings have been wrong plenty of times.

5. The whole doxxing itself may be complete BS, orchestrated either by Lizard Squad themselves for lulz, or by someone else, probably also for lulz.

Also, don't assume that because a DDoS was threatened, that means Sony/MS can just easily "block" it or something. It's not that simple. Lizard Squad didn't specify which points in the network they were going after, where from, what type of traffic they'd be spamming, etc. And those things may all be changing as the attack proceeds.