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scottie said:
Xero said:

I was looking through the terms and conditions sourced on the back of my PS3 box...

""Without limitation, services may include the provision of the latest update or download of new release that may include security patches, new technology or revised settings and features which may prevent access to unauthorized or pirated content, or use of unauthorized hardware or software in connection with the PS3™ system. " - http://uk.playstation.com/legal/detail/item239569/SYSTEM-SOFTWARE-LICENSE-AGREEMENT-FOR-THE-PlayStation®3-SYSTEM/

Isn't this exactly what Sony are doing? From what I read there Sony can distribute there software updates (with changes) if it may prevent access to pirated content, or unauthorized use of hardware. 

This is sourced on the back of all PS3 retail content, all PSN content, all PS3 hardware. So doesn't this mean what Sony have done is perfectly legal?

No, that  isn't the case. Sony could include "we reserve the right to murder you in your sleep if you pirate our games" Doesn't then make it legal for them to send out hitmen - a lot of things that you sign in a contract actually have no legal ramifications

 

Also, updating a feature is not the same thing as removing it.