My friend and I we're having a debate on wheather or not a PS3 mod chip existed. He was insistent that his boss had a modded PS3 that played burned games. I told him it wasn't possible thanks to our friend the hypervisor. So am I correct or has there been some miraculous breakthrough?

There's a topic on the very same page as this one about geohot recently making a slight breakthrough in PS3 modding but as of yet, no. (or at least not to my knowledge)