Or at least – they might as well of done. The Sony PS3 blog details the next update which will remove the “Other OS” option of the PS3. That is, you will no longer be able to install Linux. This comes shortly after Geohot had broken the PS3 hypervisor (the thing that makes the Other OS option possible) to execute code on the PS3 itself.
So – in essence, they’ve basically admitted they can’t fix it and decide to just disable a feature that is heavily used in research labs around the world – PS3 clusters and the like are not more!
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