PlayStation 3 hacking dongle that represents a build-your-own kit, PSGroove, has appeared in the Web. 

PSGroove comprises software that can be downloaded and run on a specific type of USB Flash drive and used in much the same way the PSJailbreak dongle can.

Specifically, it will allow a shop-bought Sony PlayStation 3 to operate as a developer console and run unsigned applications and games.

The real bad news for Sony is that the software is being realized under an open source licence for free.

It's only being offered in source code form, so users will have to compile the program before they can use it, and it only works with devices that use the AT90USBxxx series of controllers. Nevertheless, with the source code published, enterprising hackers may well be able to add the facility to play downloaded games.

As of now, PSGroove won't play pirate copies of games - it doesn't permit apps to be run from external storage or the console's hard drive.