A hacking group called "fail0verflow" claims to have a new hack for the PS3 that would restore Linux functionality as well as allow the PS3 to play burned games on a Blu-ray discs without the proper firmware:
While the group claims to have created its most recent hack in order to restore Linux operating system functionality, fail0verflow's PlayStation 3 modification has additional features that may be of greater concern for Sony. According to the report from Sony Insider, this firmware will allow the PS3 to run any program without authentication, meaning that PS3 game files burned onto a Blu-ray disc will function in the same was as traditional PS3 retail discs, regardless of the firmware needed to play said game.
fail0verflow is claiming that it will not release the firmware, the proof and toolset the group is planning on revealing to the community could be enough for this potentially crippling hack to make its way to the community at large.