when you have the master key you can make the ps3 accept any media as original bought one even if it is homebrew or pirated dosent mater. sony cant do anything about it, they must make a new ps4 with better security to figth this one...
I was peripherally involved the ps3 scene before, but I lost interest when the USB hack came out and I haven't really read up on the recent breakthrough, but I still think it's premature to say Sony can't do anything about it.
I remember when people were saying the same thing about the PSP after PSAR dumper came out, but Sony managed to come up with many countermeasures. True, these were eventually also broken, but that took some hard work (and a bit of luck!)
Without really reading more than the headlines of the recent hack, here are my thoughts:
The security of the PS3 relies on the isolated SPU. The SPU is protected by a hardware cipher (probably AES) with an embedded root key. Far as I know, this root key is NOT what's been captured.
Various "loaders" can be executed on the isolated SPU. These loaders takes the place of the hardware crypto engine in the PSP, with the advantage that they can be easily updated. They contain the public half of asymmetric cipher keys, and when an application wants to run on the PS3, it is fed to the right loader which verifies the signature and decrypts the application and schedules it to run. Not a valid signature -> no go.
From the little I've read, I surmise that they managed to break the SPU isolation by finding a bug in one of the loaders (not such a trivial feat!) Once inside the isolated vault they could grab the public keys of the loader, which ought to not be so valuable had Sony not screwed up majorly by letting the private keys be easily derivable from the public keys!
But, while having the private keys of a loader allows one to sign one's own executable, it does not necessarily (actually, with proper security, it definitely ought not to!) allow one to run a patched/modified loader in SPU isolation! So, Sony ought to be able to release updated loaders minus the bug and with new keys, properly created, and a whitelist of old official software allowed to run. If so, the captured keys are only useful with the old firmware.
But who knows? There have been many assumptions (reasonable ones!) about how the PS3 security ought to work, only to be shown that Sony had opted for somethign worse...
I think we'll just have to wait and see if this hack has enough strength to best all of Sony's countermeasures, but one thing is for sure though: Sony is in total control of PSN at least, and I'll bet they go to lengths to lock out hacked consoles from it! Even if possible to masquarade a hacked console, it'll be an arms race at the very least...