Sony understands modchips Sony is clamping down on modchips--dongles that enable playstation 2's to overcome regional encoding. Sony claims modchips (which aren't illegal) enable people to use pirated games--a serious problem because that's where they make most of their money. But even if people weren't buying pirated games, the chips overcome regional encoding, which reduces Sony's market power and therefore ability to price discriminate, which damages margins. Since overcoming regional encoding is quite legal (except in the US under the DMCA), Sony can't admit that's their real motivation--thus the useful "pirate hacker" ruse. Personally, I'm just glad to see them acting in their own self-interest for once.