Machine Politics. George Hotz, Sony, and the Anonymous hacker wars.
In late December 2010, fail0verflow, a team of European hackers, demonstrated that the Playstation 3's security was fundamentally flawed and managed to obtain the encryption key used by the device (see previous discussion). Utilizing the techniques developed by the fail0verflow team, iPhone hacker George Hotz released the encryption key publically, which enables the execution of arbitrary code on the console. Now Sony is suing both George Hotz and members of the fail0verflow team. [more inside]
Citing security concerns, Sony has decided to release a firmware update that will disable the "OtherOS" feature on its older (non-slim) PlayStation 3 systems. This is almost certainly a response to the system finally being hacked two months ago by George "GeoHot" Hotz. To counter Sony's disabling of the feature, Hotz, who previously stated that he would not be releasing custom firmware for the PS3, now plans to do so: "The PlayStation 3 is the only product I know that loses features throughout its lifecycle. Software PS2 emulation, SACD playback, and OtherOS support are all just software switches you can flip. It's unbelievable you would go and flip one, not just on new boxes you are shipping, but on tens of millions already in the field."