It has finally be done, or someone has reported it finally being done. Hacker George Hotz is claiming that he has finally hacked into a PS3. The system has been notoriously hard to get into, and until now no one has been able to do it. The reason this isn't confirmed yet is because Hotz isn't releasing how he hacked the system, stating that, "As far as the exploit goes, I'm not revealing it yet. The theory isn't really patchable, but they can make implementations much harder. Also, for obvious reasons I can't post dumps. I'm hoping to find the decryption keys and post them, but they may be embedded in hardware."
I don't actually know what any of that means, but according to Hotz it was none too easy to get into the PS3 even though he claims it only took him five total weeks to do it. He describes the PS3 as "very simple hardware cleverly applied, and some not so simple software." It's your choice whether or not you want to believe him, but the man has some street cred since he was the first guy to hack the iPhone 2G. From what I can glean from the interwebs, this is really a very solid move forward in terms of hacking, but is in no way an open pass to start doing whatever you want to a PS3.
Dtoid hackers more in the know than I, is this a big deal or just a baby step?