Piracy doesn't make as much of a difference as some people seem to believe. Part of the reason PSP software sales are so low is because people buy it primarily as a media player. Hardly any adults play handhelds outside of Japan, and kids tend to favour the DS.

Both the Wii and Xbox are widely pirated but it hasn't drastically affected sales. The PS3 is even less likely to be a victim of piracy as the size of games on a blu-ray disc is so much larger. Coupled with the fact that it auto-updates when you go online, I don't see piracy being a massive problem.

Note: I don't own a 360, so I could have this wrong, but this is what I've gathered from the internet/people I know who have modded.

 Technically yes, but unless MS has any way of seeing that you've opened your console, as long as your DVD drive is still flashable, it is simply a matter of reconnecting it to a PC and reflashing the original firmware.

I'd be amazed if the ps3 gets a soft mod solution before the wii..

x360 has been hacked for some time. as far as i know it does not void your warranty but i could be mistaken. i'd speculate that xbox live keeps many people from doing it, though.

Yes and i also can imagine all the fanboys whining and crying after Sony fries their PS3/hd

 In order to mod the 360 you have to open it.  If you open the 360 (or any current console) there is a seal that's broken and your warranty is void the moment that seal is broken.

you know im shocked it took hackers this long. im disappointed really. People hacked the Wii and 360 in no time flat but the PS3 is only at this stage. Sony has some good security me thinks.

The iPhone also was hacked by a tiff exploit. I can't believe companies even include tiff support. Who actually looks at tiff files anyway?

Honestly, a large portion of the hacker's slowness with the PS3 is (probably) caused because it is impractical (and thus unprofitable) to steal PS3 games at the moment. The XBox 360 and Wii were pretty easy to crack because they just trick the system into thinking that a DVD-R is an original disc, and thus a copy of a Wii or XBox 360 disc that maintains the digital signature will play in these systems; if you use the exact same approach with the PS3 people will have to buy an expensive Blu-Ray burner, buy expensive writeable Blu-Ray media, and download a 25GB (or 50GB) image of a PS3 game.