If anyone's been paying attention to the Sony news lately, they're likely in the know about how GeoHot got the private key and basically unlocked the PS3 for people. Sony pushed back, got a restraining order and is taking GeoHot to court.
Sony had also requested Google to get IPs and other info on anyone who watched the youtube that showed the key and the method of jailbreaking. Sony has basically stated they're basically going after anyone who sees or spreads that key.
Hackers have been fighting back at every turn. It's basically a game of trading blows right now, with Sony continuing for legal lockdown and the hackers going farther and farther to get the code and the info spread far and wide, publicly.
Sony took it to the next level this morning, when German Police raided the house of a PS3 hacker.
There's a great makezine article on Sony's trend of going after consumers and innovators that nicely sums up the mentality of the company.
I realize that is a metric fuckton of links, but I assure you, it's all interesting reading. Chime in with your thoughts on Sony's tactics and if there's any more info as things progress.
Edit: A little more backstory on the issue:
The larger models of the PS3, from launch day all the way up through the release of the slim models, supported the option to install an alternative operating system (mostly Linux flavors) on a separate partition on the PS3 hard drive. GeoHot, a notable hacker who jailbroke the iPhone, posted news and knowledge of a discovered exploit that granted Hypervisor and Read/Write memory access. This exploit was accomplished through Linux, and as a result, the new PS3s and the Sony firmware that followed the exploit's reveal removed the Install OtherOS option for "security reasons". Mind you, this was a feature that was highly marketed and pimped at launch, and for the people who bought a PS3 in order to run Linux on a highly specialized core and architecture were massively pissed.
People continued to try to hack the PS3 and, not too long ago, a group called fail0verflow was successful in getting past security countermeasures and found the ability to reveal the PS3 private key, which is used to sign software as being "Sony official". GeoHot released this key last month, publicly (heck, even Kevin Butler accidentally retweeted the key). Since then, all shit has hit the fan.