Ingenious hackers (is there any other kind?) have found a way to make the PSP play pirated copies of commercial games through the hand-held's Memory Stick slot. The hackers exploited a bug in early versions of the PSP firmware (present on the original Japanese PSPs and on some early US PSPs); more recent versions of the firmware already address the problem, and Sony is planning on providing automatic firmware upgrades on future game titles.
Although Sony is downplaying this development's significance, others fear that it is the beginning of a long fight between Sony and PSP hackers.
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