It is not a good day to be in the Sony PlayStation 3 security department, as a new nightmare hack has apparently been released for the PS3. This time around it will feature custom PS3 firmware, along with publication of the LV0 decryption keys, which some in the hacking community speculate blows the entire system wide open for more hacking and development.

We have seen a number of PS3 hacks since the system’s release and we have seen Sony’s attempts at plugging the holes, which have met with mixed results. The fact that the LV0 decryption keys have been released presents a serious problem for Sony, as this means that the 4.30 update can be decrypted with no problem.

Sony’s options to battle these developments are limited. We do expect Sony to respond quickly, but they will want to think about what is the best way to deal with this latest hack.