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For one, it will likely lead to ridiculously easy pirating, but even worse, it will also probably lead to the legitimacy of PSN falling apart. Since any software can be properly "signed" now and trick the PS3 into thinking it's legit, people will be able to hack in any trophy they want, get online with hacked copies of games, and cause mayhem
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Yes, people will be able to install third-party software just like any other PS3 game, as well as pirated stuff, and that doesn't hurt every PS3 gamer out there, but cheaters will also be rampant on PSN - and that does hurt gamers.
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What's worse? It's possible, even probable, that Sony won't be able to keep hackers and cheaters off of PSN. The 360 can by way of a permanent ban of a specific console and is only possible due to unique console IDs hard-wired in, but rumor has it that these can be changed on the PS3. Depending on how Sony set up that security, it might be impossible to stop people from logging on with a new ID every time.
