The PS3 has been hacked at the most core level possible, and it's threatening the sanctity of trophies, the security of the PS3 system itself, and more. And Sony's mad as hell. Let's dive in, shall we?
Jailbreak exploits to run third-party software (and to kind of get pirated games running) have been around on the PS3 for months now, sometimes with or without the ability for these players to get on PSN. But a couple of weeks ago, a guy named George Hotz (aka Geohot, the guy who jailbroke the iPhone) used some method to figure out the PS3's root key. This is the specific string of characters used to encrypt all PS3 software as being produced by Sony, and it has huge ramifications for the future of the PS3.