yes it is true, You can get a special USB stick which you put in to your PS3, then turn your PS3 on and it boots to your USB Stick and loads a special firmware where you can backup and play your games from your hard-drive. Your PS3 needs to be running official firmware 3.41, but you can downgrade your firmware if you are using 3.55. for more info take a look @ http://www.amazebreak.cc/
I believe the xbox scene is very popular for pirates because there are so many people developing for it as theres a demand for it.
PS3 is not the same, The people I know who have got a PS3 dont want to mess about with it as the PS3 costs alot. I dont think you can even download games??
thats intresting news, i never knew that, Wonder what sony till do next
They already have "done next"
BBC News - Sony launches legal action against PlayStation hackers
and then what came of that:
BBC News - Sony scores against PlayStation 3 hacker