Look what just came out of the rumor mill! While we all know of the ensuing legal battle between notorious iPhone hacker George Hotz, a.k.a Geohot and Sony, it was because Geohot had managed to crack the PS3 firmware, and Sony in response not only took Geohot to court, but started banning jailbroken PS3 owners from PlayStation Network as well. In order to cover his legal expenses, Geohot had asked for donations on his blog, and interestingly enough, there was enough money donated in two days for him to finance his legal expenses. So the big rumor here is: Microsoft donated a big lump of money to Geohot.
The source claims that this particular information about Microsoft donating a huge sum to Geohot comes from a person who has knowledge of the matter, and the claim is made considering the fact that Geohot had received all of the money to pay for his lawyers initially, after just two days had passed since he had asked for donations.
So does it mean that Microsoft wants Geohot to win against Sony, so that hacking/jailbreaking PS3 becomes legal? Even if that happens, how would that prove to beneficial for Microsoft’s own gaming platform, Xbox 360? All of question remain to be answered.