okay, this is BIG.


Interesting what some comment are... Seems like you do not know who is Geohot.
I don't doubt this is real. I mean, this is the man who hacked the iPhone, which was called unhackable by some hackers.

it means this guy full of bs. unlike the psp there's more security you have to past and then there's firmware. go do research trust me yoll be dissapointed. matter of fact his hard work can go down the drain through 1 firmware upgrade then its back to trying to hack the ps3 in 2 more years

Its not just a guy. Its like some people already mentioned the most famous active hacker today. He never lied he is respected worldwide. 
The Iphone was once the most secured system and he cracked it noone else did it before even though a lot of people worked on it.
This guy is definetly not full of BS he has a name. Lets see what he will deliever. If it wasnt him I would say ok some kid which talks shit but he exactly know his stuff. just google him or look at wikipedia. 

Look at twitter http://twitter.com/#search?q=geohot how fast it spreads all over the world

except PS3 profit from software not hardware

Wrong title from OP. The correct title is 'PS3 claimed hacked, reality of situation still unconfirmed'.

While on the topic, I am always a bit torn on people trying to hack these systems. On one side I do have a strong feeling of support for peoples right to control and modify their own hardware, and to make backups of their software. On the other I have zero sympathy for software pirates and they do seem to usually be the main beneficiaries of things like this.

@ all the people who say games are too big to download:

BS.

I'm on a 1Mbit connection which is VERY SLOW compared to the todays standard. 1Mbit means 125Kbyte/second, meaning I can download 1Mbyte every 8 seconds. That means I can download a whole DVD (4,7 GByte) in 10,5 HOURS. Even if you take a whole Blu-Ray (25 GByte) I only need a bit more than 2 days. Many people already have 16Mbit connections or more, so they will need even less. now Where I see problems is the Blu-Ray Burner + blanks. The prices are still high as shit.

So how long would it take me to download the 50gb MGS4?? hmmm now that I think of it 50gb is my cap limit.....=.= piracy.

Actually I dont know much about downloading stuff but isnt it made via torrents ? And isnt it dependend on the number of peoples which are uploading how fast it is ? Is it really that fast that it gives you a stable 125kb/s connection over days ?

respect wordwide? yet i never heard of him and im real into things like this >.> lol. seriously kid go do some research on what sony can do to prevent hacking (they litterally thought of so many ways before the ps3 was even out). they learned from the psp go look into the 7th cell security (i think it's that one). i mean you give him credit for hacking an iphone? its like me giving credit to the person who hacked the psp. ill like to see a hack pspgo though lol

then try buying a new pc or laptop with a built in blu-ray burner (or seperate which still is expensive) then wait to see how long it'll take to burn. then keep in mind (hope) that w/e this guy came up with is a secure thing because 1 mandatory firmware upgrade can destroy all YOUR hard work as well. this isnt an iphone people. even if he does hack the ps3 its just a matter of how long sony releases a firmware to change all the codes again. then the next step is actually getting games to work on the ps3 which also can be destroyed through 1 firmware.