Datel has made its name hacking consoles and games. The PSP homebrew community has grown wary of the company, what with the Lite Blue Tool debacle and everything, but it looks like they've gone and done something that homebrew devs so far haven't been able to: crack the PSP's encryption process. Their new Action Replay software seems to point to it.
Homebrew developer Wololo explains what this means to the community better than I can, so here's an excerpt from his recent blog post on the subject:
Action Replay gets installed in the UPDATE subfolder of GAME, which is usually reserved for official Sony updates. It therefore means that Datel has figured out how to encrypt/sign EBOOTS, but needs their product to be in the UPDATE folder for some reason (easier to encrypt? Use of some specific access granted to this folder?)
Now, this is not very useful for hackers (and even less for pirates, ha). Yet another encrypted EBOOT to analyze will not bring anything. However, Action Replay allows users to patch memory with codes, so maybe something can be crafted in order to inject unsigned code in the PSP through Action Replay, which could unlock (at least) user mode (and therefore homebrews).