Well ladies and gents, it's official. The Playstation 4 has been modified in such a way that makes it possible to run pirated/backup games. After the consoles long and successful run, selling over 22 million consoles since its release in 2013, it might be time for the console to slow down. This literally couldn't have come at a worse time. Both Microsoft and Sony have been bragging and teasing their new lineup for the upcoming E3 and with Sony's crown jewel tampered with, they may not receive quite the amount of revenue they would've expected.
As of right now the hack has not gone international, it's currently gaining popularity in Brazil, at certain retailers. The Russian crackers behind the hack claim that the exploit is undetectable on Sony's end. According to some writers at UOL Jogos, a popular Brazilian gaming website, they had the hack performed to their consoles in Sao Paulo and to their surprise the hack worked.
As expected, Sony isn't too happy about the hack and has been sending out cease and desist letters out to the Brazilian retailers who are selling the hack. While the hack itself is not illegal, the retailers often bundle the hack with 10 games of the buyers choice and charge an additional $15 per pirated game.
Sources: IBTimes, UOL Jogos
Credit to frostyzz for bringing this to my attention