What's the first thing you'd do when you finally got your PS3 home? The logical step would be to slap in a Blu-ray movie or enjoy some Resistance: Fall of Man on your mammoth 1080p screen. One gamer had none of that and decided that booting up Super Mario Bros. -- a game released in 1985 before high-def was even an idea -- on his nexst-gen console (we tried Donkey Kong ourselves). While we only see a brief flash of SMB followed by some Linux command lines -- which could very well be faked -- this video could show where the PS3 is heading.
If the PS3 turns out to be like the PSP (a machine some use mainly for homebrew programs), Sony is going to have a hard time making the PS3 a profitable venture; they aren't going to make a penny if someone is playing a pirated copy of an NES game. Sony could very well prove that loss-leading on a multimedia machine is a bad idea. They simply are unable to control the content coming into the machine (outside of an epic war with homebrew hackers volleying firmware updates and firmware hacks back and forth). Unlike other consoles, where it would take some hardware modifications that some may find too difficult, Sony made it a feature to be able to use the PS3 for whatever you want (which we applaud); however, machines like those need to be profitable. Sony can't make up their big losses on each unit if no one buys games.