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If a company learns not to go back on it's word, the lawsuit is a good thing. I was thinking about getting a PS3 because it could run linux and somewhat supported instead of having to hack the system. That said, I didn't want to spend that much for a PS3 at the time and waited until I could get a good price for a used one on ebay.

When Sony decided to do this, I am sure they weighed the possible costs of a lawsuit vs. the potential of lost sales because continuing to allow Linux to work would of also left the console with an open back door for pirates. I think the industry overestimates how much they loose to pirates (and much of the pirated games would of never been purchased), but I am sure the quality of a DRM impacts a manufacturer's ability to attract publishers for their platform, and to put it simply, having an open system compromised their DRM.