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Lacking any technical means by which to combat the circumvention of their improperly implemented pki security. Sony has filed suit against everyone involved - even though fail0verflow only provided enough info to get Linux running, and not pirate games (Geohot's info, however, could be used for both...
BTW: This extra storage will come in really handy now that the PS3 has been hacked as a result of Sony removing the OtherOS function . (http://psx-scene.com/forums/cmps_index.php)