Engadget has a news story today that will have PS3 owners rubbing their eyes with disbelief, as someone is claiming to have finally come up with the world’s  first USB modchip for the PS3, after many years of many people trying many different ways to invent something similar. Joystiq also covered the story, revealing that the device is called the PSJailbreak, with its makers OzModchips.com claiming that it enables retail PS3 games to be played from a hard drive, and that it can also block Sony’s firmware updates which would render it useless. Both Engadget and Joystiq point out that there’s really no concrete proof that it works, and the keen-eyed peeps at Joystiq have also noticed that the OzModchip guys in the video are using a debug PS3, which can run debug code, including code from a USB drive such as the PSJailbreak. Although that doesn’t necessarily mean that the PSJailbreak isn’t the real deal, in the words of Joystiq, “why use a debug system to prove functionality that already exists in a debug system?”