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Because look how popular it is.

NGU has had thousands of new members sign up recently, and NGU has made over a thousand dollars worth of donations in SIX DAYS.

There were 1697 users on yesterday.

This is all because of the CFW.

And that's JUST NGU, think of the people on other sites, the ones who got it through their friends etc. and it's not much of an overstatement to say that soon 10% of ALL PS3 users that have PSN will have the CFW.

Sony is in direct competition with Microsoft, especially with the release of Kinect and PS Move.

Do you REALLY think Sony can afford to lose 10% of their consumers right now?

UPDATE: So a lot of people are bringing up the whole "Piracy" thing...

Well, most of the people with the CFW only want it for MW2 lobbies, so that means that a very few percent of the people who get the CFW will use it for piracy.

On top of this, NOBODY has edited the lv2 and the kernel to allow the Backup Manager to be used, and chances are nobody is gonna be bothered to do it because nearly EVERYONE on this site just leeches.

Then theres the few people who will try, but won't be able to do it...

And then there's the odd couple who will try AND be able to...

Odds are if those few people manage to do that, and get the Backup Manager on PS3, they WON'T release it, why? Because although Sony most likely CAN'T patch the firmware, they CAN block the MD5 hash of the programs, and set a function to automatically IP ban any user running a program with that MD5 hash while on PSN. If they widely release it, there's more chance that Sony will introduce a check for that MD5 hash.

With that in mind, that means anyone going on PSN while running the Backup Manager CAN be banned, which would stop most people from using it.

I wouldn't be so quick to jump to this conclusion, Micro$oft banned everyone who modded their drive firmware when it was detectable (about one million or so Xbox's).

Here's what will happen:

Sony will say they're doing everything they can to patch the CFW and ban the hackers, and they will, for a couple of weeks. Then after that, they're gonna say that they can't do anything because the security is completely compromised, they're gonna say they can't take legal action because it's a fault on their behalf, and they're gonna say that they can't ban the hackers because you can't tell between the CFW and OFW. Then they'll watch as their sales double or maybe triple due to EVERYONE buying PS3's just so they can hack as much as they want without being banned.

---------- Post added at 03:34 AM ---------- Previous post was at 03:32 AM ----------



But Microsoft KNEW they could recover, if Sony patch this and ban everyone who has used the CFW, which will be about 20% of PS3 users within a week, then they KNOW they won't recover from that kind of loss...

microsoft doesn't lose any money because people who go online with jtags and have jtags simply ARE smarter than people who just put a usb in and think they're a 1337 h4x0r, you have to solder the jtag onto the xbox. And the type of people to do that have more money in general so they just go buy a new xbox.

Yes they can and I believe they will ban, or serverely restrict services. Don't get me wrong as I am considering installing CFW but I am not jumping in head first, I want to see how they deal with users with it first.

Microsoft ban thousands if not millions each year for modding consoles and it doesnt affect them as these kids go and cry to mummy and daddy to buy them a new console. I believe the same to be true for PS3 users.

Plus any bans are neither here nor there; they dont charge for online services so can withdraw services as and when they wish if they so please and the consoles will still be useable offline.

Sony just might because theyre stupid.. After all they made hackers come and hack their console because they removed otherOS so you dont think they will ban us? Only time will tell the out come till then we dont know what tricks sonys got up their sleeves and such.

HAHAH WATCH THIS! I told a guy on mah friends list about dis...and he went spastic and made a vid about...co-incidentally i sign in during the middle of it...
[ame=https://www.youtube.com/watch?v=osb6oRNC1ZA]YouTube - Ps3 Custom Firmware Read Description 4 TuT [/ame]

lol yeah, I would say most people went spastic for it, my CFW thread got 15000 views in less than 24 hours.

I think sony is just going to ban alot on the first few months it's on and then theyll stop because they cant ban everyone

over 100 people on my youtube video alone done it aswell