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http://arstechnica.com/gaming/news/2011/01/sony-releases-new-ps3-firmware-hackers-shrug-and-crack-it.ars
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Secure authentication is possible. We all agree that the Sony hw security is flawed.
Once secure authentication is made, secure data transmission begins. Afterwards, there's no reason why the console's unique ID couldn't undergo the application of a new encrypted key at the server side.
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