http://www.ps3center.net/article/202/wh ... en-hacked/
When we create a new generation of video games, we also create a new generation of technology, security, and sadly ... hackers. Finding holes in new hardware and exploiting them to do anything from copying free games to changing the technology itself, these hackers have many ways of doing things and leave many industries looking for solutions to stop it. With the PSP being hacked just days after each update, we are left to wonder why the PS3 hasn't been hacked yet and what has Sony done to stop the madness. Well, we created a feature to help explain how things are done and exactly why the PS3 is safe from these attacks.If you have ever hacked, or watched someone hack a PSP, then you'd know how things work. You mess with the file system and trick it into reformatting itself to fit your needs. All the DRM and privilege rights are overwritten and nothing is stopping you from doing things you're not supposed to. This can be done on almost any technological piece of hardware. You can insert a UMD and copy it to a memory stick, you can take the iPhone and change the version to bypass AT&T security, or you take your PC game and upload it to a torrent site for someone else to play. Since these hacks seem to be common practice nowadays, Sony has obviously studied these exploits and went to great lengths to prevent it from happening on the PS3.
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This is a very good read! 
