if this video is true that's coming out tomorrow, then Sony could be in trouble, if the PS3 is fully hacked then that would allow users to sign their own code which means you could install linux on it, back it play PS 2 games basically whatever you want it to do, just by signing your own code...
The souls who unlocked the Nintendo Wii's homebrew potential (and defended it time and again) claim to have broken into the PlayStation 3 as well. Last we left the black monolith, Sony had won a round, forcing the community to downgrade their firmware for any hope at hacking into the console. Well, the newly formed fail0verflow hacking squad says that won't be a problem any longer, because they've found a way to get the PS3 to reveal its own private cryptography key -- the magic password that could let the community sign its very own code.
So far, the team hasn't provided any proof that the deed's been done, but they have provided quite an extensive explanation of how they managed the feat: apparently, Sony didn't bother generating any random numbers to secure the blasted thing. (We don't really know how it works, but we have it on good authority that dead cryptography professors are rapidly spinning in their graves.) The group intends to generate a proof-of-concept video tomorrow, and release the tools sometime next month, which they claim should eventually enable the installation of Linux on every PS3 ever sold. Catch the whole presentation after the break in video form, or skip to 36:00 for the good stuff