What happens is the free market. You bought a PS3 so you could play Sony licensed games, watch Sony licensed Blu-ray movies, and use the Sony licensed and owned Playstation Network. So nobody should be surprised that Sony has some control over what your PS3 can do. If they abuse that control then you punish them with your dollars. Just because the "product" you bought is actually a large network of services, licenses, software, and hardware doesn't mean you can't flex your free market muscle and chose not to participate. All these inane "what do we do when ridiculous XYZ happens?" (as if Sony would remove BR play back or game playing which they collect licensing fees for, and is in fact the entire purpose of selling the hardware at a loss) are stupid. You do the same thing as when you buy any other product based on false or misleading advertising. You don't buy from that company again. You didn't buy the hardware when you bought a PS3. You bought into a large network of things beyond the hardware. But somehow everybody thinks that being dissatisfied with their purchase because of the service is completely different than being dissatisfied for some other reason. It's not. The "product" is not just the hardware. If you won't want the "product" don't buy it. If you already bought it and don't like it, don't buy another one.
It's not. Modding hardware is not illegal. Modding hardware to play games you didn't pay for is definitely illegal. Modding hardware to play games you DID pay for, but in a way they don't approve of is (i.e. HDD backups) is also technically illegal, but mostly only prosecuted because you can do the same HDD backups with games you don't own. You can add as many LED lights, extra disk drives, etc. as you want. The DMCA, however, says you can't bypass copy protection, even for personal use. Which is pretty silly in itself, but that's a whole other issue.
When was the last time a game you bought came with source code. How about never. You NEVER owned the games you paid for. Everybody loves to reminisce about the golden days of the NES. Cartridges were just another form of DRM. It was a very convenient DRM for the consumer, but it was still there to explicitly restrict the copying of the game. If you think that you ever have or possess the fundamental right to "own" the game that you paid $50 for rather than the producer, who could have paid tens of millions for the game, then you seriously have no idea about any of the legal ramifications of what you are talking about.
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What happens is the free market. You bought a PS3 so you could play Sony licensed games, watch Sony licensed Blu-ray movies, and use the Sony licensed and owned Playstation Network. So nobody should be surprised that Sony has some control over what your PS3 can do. If they abuse that control then you punish them with your dollars. Just because the "product" you bought is actually a large network of services, licenses, software, and hardware doesn't mean you can't flex your free market muscle and chose not to participate. All these inane "what do we do when ridiculous XYZ happens?" (as if Sony would remove BR play back or game playing which they collect licensing fees for, and is in fact the entire purpose of selling the hardware at a loss) are stupid. You do the same thing as when you buy any other product based on false or misleading advertising. You don't buy from that company again. You didn't buy the hardware when you bought a PS3. You bought into a large network of things beyond the hardware. But somehow everybody thinks that being dissatisfied with their purchase because of the service is completely different than being dissatisfied for some other reason. It's not. The "product" is not just the hardware. If you won't want the "product" don't buy it. If you already bought it and don't like it, don't buy another one.
It's not. Modding hardware is not illegal. Modding hardware to play games you didn't pay for is definitely illegal. Modding hardware to play games you DID pay for, but in a way they don't approve of is (i.e. HDD backups) is also technically illegal, but mostly only prosecuted because you can do the same HDD backups with games you don't own. You can add as many LED lights, extra disk drives, etc. as you want. The DMCA, however, says you can't bypass copy protection, even for personal use. Which is pretty silly in itself, but that's a whole other issue.
They have the right to update their terms and conditions.
I have a right to reject said changes, and have.
Barring any changes to the contrary, they have no right to modify my hardware.
Um... they aren't modifying anybody's hardware. It's called a "software update" because it modifies software.
When was the last time a game you bought came with source code. How about never. You NEVER owned the games you paid for. Everybody loves to reminisce about the golden days of the NES. Cartridges were just another form of DRM. It was a very convenient DRM for the consumer, but it was still there to explicitly restrict the copying of the game. If you think that you ever have or possess the fundamental right to "own" the game that you paid $50 for rather than the producer, who could have paid tens of millions for the game, then you seriously have no idea about any of the legal ramifications of what you are talking about.