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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.

sure why not :y:

i agree with you and a file i used to download the CFW was already downloaded by 10,000+ people

lol keep on hacking the system ....
they can't bann all this people

If the FW is signed with the keys ( Which it is ) it shows as normally 3.55 software.
So when it goes into the database it shows as standard 3.55. Which is why you cant change back to OFW via USB if your are on CFW 3.55.

total bullshit.

you can change back and forth ofw and cfw via usb. i did it without service mode.

Sorry, i just saw that thread. i heard before you couldnt.
My Bad /facepalm

No they wont ban us they stop just the access to psn whit the CFW

Sony got rid of OtherOS on ps3, why would they care?