Yesterday, George "Geohot" Hotz demoed some nifty homebrew on a PS3.
It wasn't only a crack but a full custom firmware that he released to the world today.
In its current state it'll only let you play homebrew and no backups.
Meanwhile Sony announced that they will fix it with some network updates, but according to pytey from the group failoverflow it won't be that easy.
"The only way to fix this is to issue new hardware... Sony will have to accept this."Well let's see what the future holds for us.