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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.

Just because so many new members have joined dosnt mean sony cant ban you BUT, I do 100000% agree with the last part of competition. :y:

That is no proof at all! Your are breaking there terms and conditions and when they implement a system to check for specific modified files your console will be blacklisted from the use of PSN. Simple as really, going to pretty funny when this starts to happen xD

That's correct, but not as many people have the ability to play pirated games on their xbox.

I really doubt they will, If anybody in this thread owned a CFW PSP you can access the store and what not, download stuff and things of that sort, nobody that has done so has ever been banned from my knowledge and experience. In today's society, Almost ANY device that doesn't allow unsigned coding gets hacked to allow it, And as usual piracy always comes along with it. This hasn't deterred any Devs from making games for whatever platform they may choose HOWEVER the psp did see a decline in quality games BUT imo i think devs really don't care much for the handheld tier of consoles. I really doubt we'll see a decline in games for PS3, Xbox360 has been hounded by piracy but quality games still remain to be produced for it.

i see where your going with this :s

good to know!

Sony will not ban people for CFW. They fight with M$ hard and they can't just ban about 20% of PSN users only because people found a "hole" in their own software and use it as they want to. All what Sony can do right now is fight with distributors of PSJailbreak devices that includes a software to enable running unauthorized programs\games. That is ONLY because people sell it. They make money from it. If it was just given to the public, Sony couldn't do ANYTHING, so if CFW with enabled running of unsigned .PKGs will be released for FREE, then Sony can't take legal actions against masses. They only can track down a man who release it and if they gather good evidence, then they can try and fight in the court with the man who will be responsible for letting people play for free, That's why GeoHot gotta keep saying he's against piracy. He's on our side. He wouldn't do anything more than releasing a key if he would be against piracy.

any news on how to sign pkg?

Awesome thread! know i dont have to worry about being banned