Cinemas in the US canceled screenings of the film, about a plot to kill North Korean leader Kim Jong-un prompting Sony to shelve it altogether.
There has been dismay in Hollywood, with Ben Stiller calling the move “a threat to freedom of expression”.
Hackers had issued a warming to cinema-goers who planned to watch the movie.
President Barack Obama recommended that “people go to the movies”, but stressed that the hack was “very serious”.
Speaking to ABC, the president added: “We’ll be vigilant – if we see something that we think is serious and credible, then we’ll alert the public.”
Several other famous names have criticized the decision to shelve the movie, accusing the studio of caving in to the hackers’ threats.
On December 17, it emerged that Steve Carell’s planned film project, a thriller called Pyongyang about a Westerner working in North Korea, was scrapped ahead of Sony’s announcement.
Sony said it was “deeply saddened at this brazen effort to suppress the distribution of a movie”.
“We respect and understand our partners’ decision and, of course, completely share their paramount interest in the safety of employees and theatre-goers,” the studio said.
It added: “We stand by our film-makers and their right to free expression and are extremely disappointed by this outcome.”
The cancellation comes after hackers calling themselves Guardians of Peace released emails and data stolen from Sony in late November.
In a later warning to cinemas screening The Interview, they referred to the 9/11 attacks, claiming “the world will be full of fear”.
“Remember the 11th of September 2001. We recommend you to keep yourself distant from the places at that time,” the hacker group wrote, in a message on December 16.
“Whatever comes in the coming days is called by the greed of Sony Pictures Entertainment.”
Sony had given theaters in the US and Canada the option to bow out of showing The Interview in the wake of the threats.
Regal Cinemas, AMC Entertainment and Cinemark Theatres – the top three theatre chains in North America – subsequently announced they were postponing screenings, and Canada’s biggest theatre firms also pulled out, leaving Sony seemingly no choice but to postpone the film.
However, the Alamo Drafthouse cinema in Texas has decided to replace The Interview with a screening of Team America, a film featuring a marionette of late North Korean leader Kim Jong-il, the father of Kim Jong-un.
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