Sony has released an update to the PS3, bringing the firmware to version 3.56. The firmware update was designed to close the security hole in the PS3 that allowed hackers to obtain the master key and allow them to run any code on the console.
Unfortunately, within hours of the update being released, hackers were able to crack it and open the consoles up once again. The problem is that the master key is out on the internet for anyone to find and use. Sony can't stop this without producing new hardware and then it still has all the original consoles to deal with.
With the master key hackers have the ability to anything they want on the consoles, allowing them to cheat at online games and play games for free potentially taking money out the pockets of game developers.
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