It started with the CD root kit fiasco, in which music CDs distributed by Sony infected Windows PCs with software designed to prevent the ripping of music CDs to the computer, which also contained exploitable holes used by malware to infect computers.
Sony then removed the Other OS (e.g. Linux) feature from the new version of its PS3 consoles. This wasn't too egregious, but next they retroactively removed Other OS from older consoles that originally supported it. That upset a lot of people.
Along came GeoHot, a reverse engineer determined to get Other OS back, and no doubt other less-outspoken hackers. So he and the others did, and along with it recovered Sony's private key used to sign PS3 software, allowing Linux to access all the hardware of the PS3, as well as running other homebrew software.
Less-scrupulous individuals, not including GeoHot himself, used the aforementioned work to run pirated software on the PS3. This upset Sony.
The straw that broke the camel's back, though, was Sony suing GeoHot into oblivion (I personally suspect they also astroturfed gaming sites to get GeoHot's hack associated with cheaters at Call of Duty, which it was not). This is the final event that triggered the misguided but potent onslaught of attacks against any and all Sony properties.
References:
https://secure.wikimedia.org/wikipedia/en/wiki/Sony_BMG_copy...
https://secure.wikimedia.org/wikipedia/en/wiki/PlayStation_3...
[Edit: fixed botched pronoun after partial sentence rewrite]
I don't know about that. Remember, the vast majority of gamers only know hackers as one of two things: people who take over websites, and people who cheat in video games. GeoHot being a "PS3 hacker" would likely naturally have led these people to assume the latter, and the combination of general ignorance of the issue and an emotionally charged reaction to cheaters likely enabled that rumour to spread virally. I certainly don't think astroturfing was necessary to spread that rumour, and barring any evidence showing Sony's complicity in doing so I'm happy to apply Occam's Razor and assume it spread naturally.
Never presume malice where stupidity will suffice.
http://www.youtube.com/watch?v=9iUvuaChDEg
I honestly think he could outdo more than a couple of their signed artists, is the funny part.
The only effect seems to be people portraying hackers negatively in general, and at best, questioning why Sony was so vulnerable. The root motivation I described above seems to get no mention.
If you refused to install that firmware update, you could continue using your PS3 with that Linux installation, but you wouldn't be able to play new games or potentially play online. Basically, compute clusters that relied on that install continued working, and continue to work today.
The removal of that option incensed many PS3 purchasers, tech writers, hackers, etc. George Hotz then went on to crack the PS3's security anyway, enabling arbitrary code to run on the device (including applications that would let you run pirated PS3 games). Sony sued Hotz, ostensibly because he enabled massive piracy. This further incensed varied and sundry "hacking" organizations which began to target Sony. Eventually, Sony dropped the case against Hotz, for reasons that are difficult to discern (bad publicity for the most part). At this point, various hacking groups were able to penetrate the Playstation Network as well as many other Sony properties, resulting in hundreds of millions of dollars of lost income at this point.
http://stallman.org/cgi-bin/showpage.cgi?path=/archives/arch...
That's exactly what George Hotz does. He breaks security. iPhone security, PS3 security, etc. He's not a hacker according to the RMS definition, the pg definition, or probably most of the classical definitions. He may fit the current journalist's definition of "hacker" which is much closer to RMS' cracker. Since the web site we are on is named hacker news after the original definition, I think we should probably go with cracker for the people that primarily break security.
If he were primarily breaking security on other people's computer systems, then the distinction would likely be merited.
GeoHotz did a hard and ingenious hack to get his ps3 to do things it's not longer suposed to do. That's not cracking per se. I think cracking mostly happens with things like these folks did. Using a simple SQL injection (probably automated) to hack Sony's site.
It's all in the ingenuity level. That where the distinction should be.
It's rather safe to fire a gun into a crowd and expect no one will challenge you. It's rather different to fire a gun into an army division and not expect everyone to fire back with better guns than your shitty pistol.
Sony has secured its customer data like it's a fucking fire alarm. Sure it has the illusion of safety hidden behind that plate of glass, but when you provide people with a hammer to break the glass and pull the handle it's really rather pointless. They're going to bitch and moan in front of congress, parliament and every other government that asks them WTF about cyber security and blah. When they've installed a turn style at their revenue source and got surprised when people started stealing.