Hackers claim discovery of PS3 'private key,' enabling unauthorized code [Update]

During the ongoing Chaos Communication Conference 27C3, the hackers responsible for the Wii's Homebrew Channel, calling themselves fail0verflow, gave a presentation in which they claimed to have figured out the "private key" used by Sony to authorize code to run on retail PS3 systems. This means, as a PSX-Scene forum post puts it, giving a hacker "full control of the PS3 system," without the use of a USB device.

The group will explain more when its website launches, and also plans to show a demo tomorrow at the conference. This hack is designed not to enable PS3 game piracy (though it might have that effect) but, according to a tweet by fail0verview, to enable Linux to run on all PS3s, "whatever their firmware versions."

Update: Find video of the full presentation after the break, courtesy of PSGroove.
[Thanks, Liam]