CJPC is reporting the successful decryption of a PS3 ELF file off an original retail game disc. This method removes both the disc and file layer of encryption on the EBOOT.BIN.

In addition, they also claim to have successfully downgraded a PlayStation 3 console without need for a flash dump backup, “…to downgrade your PS3 you first need a copy of the original firmware (made with Infectus). However our method does not need any flash backup, as it uses the PS3’s updates to downgrade for us.”

Although it’s certainly possible, no release has been made… Could this be it — the PS3 finally hacked? Will Sony survive another round? Who knows… Tune in again — anytime, same PS3 channel. Yeah, you know what’s up.

- source: ps3news.com