The link below opens an article with an embedded clip showing a presentation proving the Wii has been hacked.  Now how will this affect Nintendo and it's partners is still unclear.  It people are just interested in doing something cool like installing Linux and making their Wii a fun little computer then cool.  If they are going to make it so that you can play unsigned games then that's really uncool.

The biggest problem right now facing the PSP is that it has been hacked.  There are a lot of PSPs being sold today around the world but shockingly not many games.  Sure people could be using the device to watch movies or listen to music but the truth is people are playing pirated games on the device.  Home brew on PSP has really hurt the software sales for the PSP since people have figured out how to copy a game to a memory card and get past the security.

This was a problem on the original Xbox and to some extent on the PS2.  You could go out and buy an Xbox with games installed on the hard drive and never have to worry about buying games.  On the Xbox 360 they have gone to long lengths to make sure the console can't be hacked like the original Xbox.  They have even gone a bit too far with their DRM software that makes it impossible to play full downloaded titles on  360 not connected to Xbox Live. 

It will be interesting to see how Nintendo responds and if they embrace the modders and hackers.  I think in the past Nintendo has not attempted to stop modders in the past but I wonder if once people can start playing Super Mario Galaxy via a memory stick if they change their tune.

Source:
http://kotaku.com/339060/wii-officially-hacked-lies-naked-and-defenceless