[Update: This will only work on test PS3 systems. This will NOT work on retail systems. Sorry for the confusion.]

Yup, you heard it right: hackers have discovered a way to run retail PS3 games off the PS3's internal HDD and off external USB HDDs. While this is quite a neat trick, it might not be all that useful considering how much data is stored on a single layered Blu-ray disc -- about 25 gigabytes. That precious HDD space will probably end up being devoured in no time.

More tech-savvy gamers out there who want to know more about this development can go check out the tech mumbo-jumbo here. We're pretty sure this high-level jargon will scare away most. What countermeasures can Sony take to ensure this doesn't become an even larger problem? Rampant piracy has always cast its dark shadow over the PSP ... will the PS3 be next? Let's hope not.

[Via Maxconsole]

This article was originally published on Joystiq.