Plans to fix the issue through an update
Sony apparently can no long ignore the claims of hackers who say they have compromised the PlayStation 3. The company is saying very little on the record, other than they are looking into the claims, and if there is an issue they plan to issue a patch using their standard network update strategy. Of course, since it is a security issue the company does not want to say any more than that.
If the claims made by Fail0verflow and GeoHot are accurate and the hackers have, in fact, uncovered the master root key for the system, it is unlikely that new firmware will fix the issue; and new hardware would be necessary in order to fully remedy this situation.
The good news for Sony might be that neither Fail0verflow nor GeoHot seem to be interested in furthering the cause of piracy on the platform, and neither has published any details or tools that would be useful for this purpose. However, the ability to create home brew applications and run them on the system could lead to development that may actually end up hurting the system, we believe.
Right now we think it is a little to early to get too excited about developing on the PlayStation 3. We will have to see if the validity of the claim holds up to the continued scrutiny that it is receiving, and if it is true that Sony has no options to address the issue. Only time will tell, but we suspect we will know all soon.