The days of Game Sharing for PlayStation owners is over. Previously, downloaded content from the PlayStation Store could be shared across five devices. While the policy was originally intended to allow flexibility for consumers that owned multiple systems, many gamers exploited it by sharing their passwords--essentially allowing one purchase to be used freely across up to five machines.
That policy is changing beginning November 18th, with newly purchased content being restricted to two machines, not five.
The new terms of service will allow users to play PlayStation content on up to 2 activated systems. For example, PS3 games will be available on up to 2 activated PS3 systems; PSP games will be available on up to 2 activated PSP systems. Once the Vita releases, it will also adhere to the same restrictions.
The revised policy will not affect game purchases made before November 18th.
According to Sony, the new policy will "protect the rights of content providers." However, some PlayStation users are already calling it "restrictive and unfair DRM" and "anti-consumer." Of particular concern are consumers that have failed consoles, which were unable to be deactivated before malfunctioning. Sony says that it will be providing a new PlayStation Network account management website, allowing users to remotely deactivate PSN accounts via the web--similar to how iTunes works.
For more on how to deactivate a PS3/PSP system, visit PlayStation customer support.