George Hotz aka GeoHot, a rather famous hacker in his sub-scene, has posted that he finally cracked the game-console.
Cited from his blog:
George claims he's been gathering the results by reverse engineering. In this stage he still keeps the methodology secret, for obvious reasons(FW UP). At this moment he is looking for the encryption keys used to get access to the encrypted coding. After that, the software-part of the hack could begin..I have read/write access to the entire system memory, and HV level access to the processor. In other words, I have hacked the PS3. The rest is just software. And reversing. I have a lot of reversing ahead of me, as I now have dumps of LV0 and LV1. I've also dumped the NAND without removing it or a modchip.
A list of the found functions
His blog

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