A hacking group known as fail0verflow is claiming to have engineered the most powerful hack of the PlayStation 3 to date, stating that they have access to the private software keys Sony uses for the system to execute programs, including games and operating systems.

While the group claims to have created its most recent hack in order to restore Linux operating system functionality, fail0verflow's PlayStation 3 modification has additional features that may be of greater concern for Sony.

According to the report from Sony Insider, this firmware will allow the PS3 to run any program without authentication, meaning that PS3 game files burned onto a Blu-ray disc will function in the same way as traditional PS3 retail discs, regardless of the firmware needed to play said game.

While fail0verflow is claiming that it will not release the firmware, the proof and toolset the group plans to reveal could be enough for this potentially crippling hack to make its way to the community at large. If it does, it should be interesting to see how Sony plans to counter-attack.