The code powering the PS3's first modchip is now officially out there, meaning anyone with an internet connection and a USB micro-controller can crack open the copy-protection on their console.
The PSGroove, a new jailbreak solution engineered from the same code that powers the first modchip, is touted as an "open source" PS3 exploit, meaning it's not out for profit, not being sold by anyone and doesn't have a company name behind it to pin a lawsuit on.
This development renders Sony's impending court showdown with Australian retailers a shallow public relations gesture at best. Why? Because defeating them would be like cutting one head off a million-headed hydra; now that PS3-cracking code is out there online, and the only device you require to operate it is a legally-available PC accessory, anyone that has the will to back-up their PS3 games and the ability to read an internet forum will be able to do it.
I'll be honest, the codework on this flies a mile over my head, but you can get a full account of how it all works at the link below.