I'm a fair man; let's do some checking. Here's one:
http://www.macmillandictionary.com/dictionary/american/prote...
"an illegal system in which criminals threaten to harm you or your property if you do not give them money"
How strange; it's not remote close to what you literally read as a dictionary definition.
I've checked other dictionaries too; same story. Here's an idea; why not open up this magical dictionary you have and see what it says under the word "literally".
A) I and my colleagues illegally broke into your thing ("harm you and your property"),
B) and you had better hire me to fix your thing ("give them money"), or
C) we'll probably do it again next time ("threaten").
I'm not sure what the source of our disagreement is.
I disagree that your fire department remark from above is a correct way of thinking about the situation, because the fire department does not start fires, nor do they charge for leaflets. What makes it seem like extortion is not primarily that geohot is offering to secure their console. It's that he's offering to be paid to do so in the next breath after helping to exploit their console.
I suggest that in exchange for being paid, he will not help crack the PS4.
(I don't actually think that was the spirit of his remark, of course, but it probably is literally true that if Sony hired him, he would likely not help crack the PS4, while as it stands, he may well do so.)
In case you struggle to draw the analogy here, in this case we have Geohot, who knows a lot about how to do something Sony really want to do, offering to help them do it. That's not extortion.
If you call that extortion, then presumably when the fire department sends out leaflets on how to prevent fires, you call that extortion too.
This is called "customer involvement", not extortion.
I think there is some moral greyness to buying an essentially subsidized console with no intention to buy games -- though now that they probably make a profit on the hardware, that point is moot.
They're probably enabling it in some cases -- the US military has built clusters with thousands of PS3s. I doubt they procured those through Best Buy.
*By unlocked I mean "homebrew unlocked" and without the ability to play games.