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I've heard - though nothing more substantial than rumor, it seems like it could be true - that some pirates had modified their PS3s to sign in to PSN dev channels, and then hacked the dev channels to pirate games via direct download from PSN. Although not directly related, some of that would have been facilitated by GeoHot's publishing of the signing keys for PS3 binaries.

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I have seen tutorials about that method in several forums. People were adding funds to their account for free and downloading tons of paid content. That's plain stealing, and I'm happy that Sony may be fixing that.

Would Sony really take down the whole network just to stop some pirates? Maybe the dev network has access to more juicy stuff (e.g. CC data)?

Given the use of a static 'random' variable, who knows what other kinds of trusts were hidden behind simple obfuscation?

Source?

This isn't a source, but I did hear the same sort of thing mentioned here:

http://news.ycombinator.com/item?id=2476931

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