Did PlayStation Network hackers plan supercomputer botnet?

Found on The Register on Saturday, 30 April 2011
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The most dire scenario is that attackers gained, or tried to gain, control of the part of Sony's network that issues updates for the PlayStation 3.

"It's justification for Sony freaking out. They could lose control of their whole PS3 network."

Researchers speculating on the cause of the PSN breach are reading the posts as evidence that it may be possible to override Sony's security using modded PS3s, particularly if it was premised on the assumption that it was impossible for jailbroken consoles to access the network.

If a device is under the full control of a malicious user, there is no limit on what can be done. If Sony would not have removed the "Other OS" feature, things would not be that bad. For now, that is, because sooner or later the PS3 would have been broken anyway.