A new development in the PlayStation 3 modding scene looks likely to blow the console's software protection capabilities wide open again, with the unearthing of the device's LV0 encryption codes, and the subsequent release of new custom firmware (CFW) updated for the latest v4.21 revision (Thanks Eurogamer
Back in August 2010, console modders finally cracked Sony's system protections on the PlayStation 3, enabling Jailbreak-like functionality on the device with custom-built modified firmware that allowed community developers to create and homebrew PS3 software, and copyright infringers to pirate game software.
That was all the way back at firmware v3.41, and after the release of firmware v3.6 a few months later, Sony seemed to have a lid on things again. PS3 owners that remained on v3.55 were able to stay liberated, but anyone wanting to access PSN online functionality, or play newly released games would have to upgrade with official firmware, and be unable to return (without a complex hardware downgrade).
The latest CFW crack is presently limited only to those who stayed on v3.55, so it can not be used on any newer consoles, or older ones that have been updated, but as the LV0 codes are now out in the wild, it is expected to be only a matter of time before the exploit is extended to all PS3 consoles. Whether Sony will be able to plug the leak again this time (beyond freshly manufactured consoles) is uncertain.