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arcane_chaos said:

if someone can anwser my questions...

1) will these downloaded games support add-ons, trophies, and other DLC?

Probably yes, it seems the console still thinks the game's on a Blu-ray.

2) will these games be able to play online and be able to handle possible firmware updates for those games

As the console thinks it's still running off a disc, the answer should be yes. Game updates, not so sure, I think there was some controversy at some point. But probably yes.

As for system updates (they're the ones called 'firmware updates' actually), I don't know. Probably yes, at least for a while. But we can't be sure about the future.

3) in the video he inserted a game disc(s)(uncharted 2 and God of war 3) does this affect those games in anyway? and can any blu-ray disc be used?

It sounds like you can use any PS3 game. I'm not sure if Blu-ray movies work.

4) also in the videos he seems to use a PS3 phat, does that mean it's aleast easier for this to work on phat PS3s than slims?

There's a new video on YouTube where the whole thing is done on a slim model. So it works on all models it seems.

5) what exactly is this USB dongle?(what make it different than some regular ubs flashdrive/external HDD)

Apparently it forces the PS3 into dev mode, allowing running games off of a HDD, internal or external.

6) does it also support PS1,PS2,PSN games?( the 60gb models for PS2 games)

I don't think so.

7) is there any type of region lock any certain type of games?

PS3 games are region-free and I suppose that thing won't change even in developer mode.

8) is their any type of data corruption involved with this?(I say this because I remember my friend downloaded a game on his PSP and it wiped everythiing

What? Anyway, I doubt they'd sell this if anything like that was actually happening.

no one has to answer all my questions, I'm just interested  in this, not that I will be pirating games, I will continue buying them from retail stores and on the PSN.

Added my answers in the quote.