An older version of the firmware that was used with the Japanese PSP releases was hacked months ago also. A newer version than 1.50 is also available now; v1.52. The v1.52 firmware was available first in Japan but Sony released it for North American users saying that it's mostly comprised of security updates. Of course, for anyone planning to use something like KXploit 1.50, updating seems like a bad idea but its likely that the v1.52 updates will be required in American PSP games soon, as several Japanese titles required the v1.51 firmware update.
So what exactly can people do now that the firmware was cracked? Well for one it is possible to play games that were not made for PSPs (but were made for other gaming devices), which is one thing that Sony really hates. Also it opens the possibility that PSP games could be pirated, if somebody could figure out how to load them on hacked firmware from a higher capacity memory stick for example.
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Sources:
Yahoo
ps2nfo.com
Written by: James Delahunty @ 22 Jun 2005 7:18