Originally Posted by chesh
Sony happily sued German PS Jailbreak customers, thanks to favorable laws there.
I would consider avoiding PSN with any modified firmware, too. Might work, but then your ISP might get a summons to reveal your address, and you might get a summons to court.
Beyond that, anything is certainly possible, but the holes can't really be closed without a lot of work - it involves changing keys and using white lists to allow older games to still run; this isn't terribly practical, because the white list, at this point, would be HUGE. The whitelist and re-writing code to fix the lapses in security practices will also take time, and likely introduce a whole new batch of exploits. Economically, this would be a nuclear option, because of the expense vs. what they could possibly recover. I only see them doing this if they are just stupid and blindly retaliating.
Realistically, even the most rampant piracy won't kill the system, but I expect the level on the PS3 to bump from 3~5% now to 7~9% of the users; and most of them will still probably own more actual original games than the average non-pirating user.
One can look at the Dreamcast, but SEGA's fate was written before piracy became trivial for anybody with a CD burner. In some ways, it was "Xbox 0.5" since a lot of the Dreamcast stuff carried over into Microsoft's console. SEGA had struggled just to sell any bit of hardware for more than a year or two to any effect, and never achieved the success it had with the Genesis (and Nintendo STILL crushed them on that count).
A bigger question might be: What are HK vendors going to do to monetize these discoveries? All those jailbreak devices just became only useful as Service Jigs now (still useful, but to a far more limited group of users).
X3Max might have had the keys - but how were they going to make money? At this point, the only thing I can see is selling USB flash driuves with modified firmware on them. OF course, anybody could download the modified firmwares when they become available, but there are still plenty of gullible users out there that won't understand that, or think it's too hard to do it for themselves.
Working hard on UberCFW, incorporating NTFS, sub-free NetFlix and Blockbuster, PSN cheat system with built-in swearbot and MAC-spoofing, Adding MKV, RAM and BIK movie support, and Xbox360 emu*.
*not really. Get a life, newbs...
My YouTube channel: http://www.youtube.com/user/BenJeremy