Just like the PSP hacker war then
So they release a device with a flashable firmware, as is the fashion, and instead of making sure the device is bugfree and finalised (like EVERY other pre-flash device) they believe the developers assurances about encryption, certifications, and unhackability.
Hmm, that just worked out fine for the PSP didn't it.
All the crap about upgrades means nothing compared to the money lost, either through piracy or contract loss.
And somewhere, some guy (or guys) decided to make the ROM a flash chip. Morons.