On June 15 2005 the hackers distributed the cracked code of the PSP on the internet.
Hackers refused to apply updates which would render their hacks unusable so Sony attempted to convince users that there was a benefit to upgrading by including new features in the firmware updates, such as a web browser, and not just security patches to plug the vulnerabilities.
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A hacker by the name of Dark Alex had released a custom firmware called "Dark Alex's Open Edition firmware" which opens the firmware but allows users to use the existing feature set of the current edition.
Sony quickly patched the firmware again, continuing the carrot-and-stick game with the hackers and users.
Eject the PSP from the computer and turn off the PSP unit. At the Recovery Mode screen, scroll down to the "Launch eboot from : PSP/GAME/RECOVERY" option and press the "X" button.
Scroll down to the "Flash New XXX," where "XXX" is the name of the custom firmware you wish to install. Allow several minutes for the installation to finish. It should boot out of recovery mode and function normally.
Connect the PSP to your computer using the USB connection cable supplied with your PSP system.