QUOTE(Spark @ Jul 17 2007, 06:20 PM)

But this doesn't replace modchips as it only changes the region, it doesn't make the console completely region free.
not necessarily.. if they can re-sign the disc couldn't they theoretically change the media type, or strip out the media flag completely.
The
potential is that they could make every disc like the King Kong demo disc... it'd be like the Dreamcast days where if you tweaked patched the rip and burn it right you could have a backup playable on any unmodified console.
you're right that this SPECIFICALLY doesn't do that... but it seems to me that no need for modchips to get region free play/homebrew is where this is heading... unless I'm missing something.