Looks like the cat and mouse game has just started between Sony and the hackers. First, hackers manage to produce the infamous PSjailbreak USB chip that can backup and run PS3 games from the hard disc without the disc being on the tray.
This opens the door for massive piracy on the PS3 which is somehting Sony have managed to block for four years now. Sony replied by releasing Firmware 3.42 ,which is mandatory to install in order to access the playstation network.
This didn’t stop hackers as they used a proxy to bypass the update and still access PSN.Sony just blocked the proxy which means those who use it are forced to update their firmware or stay offline until other work around is discovered.
It seems it will be a long war between Sony and the hackers who have recently gained access to PS3 flash memory and the registry which could mean a custom firmware is in the works.
In other news as well, The work continues on dreamcast emulator on the PS3.