According to multiple sources, it seems as if the PS3 has been 'hacked' with a new commercial USB Device called the 'PS Jailbreak'. This seems like the modern day 'HD Loader' and will allow owners to dump all original PS3 games onto a FAT32 hard drive and play the game entirely from there. There is an official website for the product, a retailer has released a couple of videos of it, plus a number of 'hackers' have confirmed it is the real deal. Although there is still the chance that it doesn't perform as expected, so keep an open mind. This is surely a major blow to Sony as the device is apparently plug n' play and works on the latest firmware. *Update* - More details revealed including claims that it will run games 2x faster than Blu-ray, support homebrew and will be fully updateable - a second video has just been released too. And another update, a new up close picture has been revealed. All the details inside!
#1 vid by OzModChips
#2 dumping a game
#3 second video for "doubsters" by OzModChips
Unfortunately i sold my PS3 two weeks ago. Sucks. :-(