I have this theory that in the Tokyo headquarters of Sony Entertainment Corporation, a GrÃma Wormtongue-like figure ominously whispers and fills in the ears of Kaz Hirai, who is reclining like King Theoden. (If you do not understand what I am talking about, then you really must read The Lord of the Rings. Please do so immediately!) Otherwise there is no explanation as to why some of the best features of the PlayStation 3 (PS3) console have been serially diluted over the years. The original PS3 was a brilliant console with backwards compatibility and hardware emulation for PS2 and older consoles, along with the ability to install a custom OS (Linux, to be precise) and connect a PlayStation Portable (PSP) and transfer compatible games to it. In the next sub-iteration of the PS3, called the PS3 Slim, the hardware emulation was replaced by software, and eventually a firmware update permanently removed the ability to install Linux on the system.
Now, it seems that firmware update 4.00 adds support for the PS Vita (due to be released on December 17th in Japan and parts of Asia) and, surprisingly, removes support for the legacy PSP.
Shacknews reports that the glitch(we are giving Sony the benefit of doubt here) removes the Copy function of every compatible game from the Xross Media Bar (XMB, the UI of the PS3 and the PSP) on the PS3′s screen, effectively disallowing the copying of a legally downloaded game on to a legally allowed secondary platform.
We await more news on this, but I really hope for Sony’s sake that it’s a glitch and not a feature.