The idea is to allow users to dump copies (or 'back ups' if you will) of PS3 games onto the hard drive and get them to run as if a legitimate Blu-ray version of the software was in the drive.
Known as PS Jailbreak, the software installs quickly off the USB dongle and according to the device's website 'disables forced software updates and will never brick your console.' This also means, Sony will find it hard to force a work around for the device directly.
Indirectly however, a system such as the one Nintendo uses on the Wii, may included a compulsory firmware upgrade on future game release discs.
PS Jailbreak only works for games - not Blu-ray or DVD movies - and reportedly opens the console up as a platform for homebrew applications - software not authorised by Sony for the PS3. A similar situation has dogged the PlayStation Portable hand-held system since its inception.
According to the creators: 'PS Jailbreak is a USB plug and play solution that installs in seconds, keeping your valid warranty seal in tact.
Easy to use installer and GUI takes you step by step.
Compatible with all production models FAT and SLIM. Supports all regions: USA, JAP, PAL and KOREA'
You can click on through to a supposidly non-fake youtube video of the PS Jailbreak in action here.