this post was submitted on 14 May 2024
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The tax loophole was a perceived reason, but it was never proven to be true. The closest admission to it was Sony losing a lawsuit related to the situation and Sony admitting that something related to Yabasic was intended to skirt EU tax law, not Linux for PS2. I never heard of Yabasic before today.
Fun fact, Geohot owns a company that jailbreaks cars and their adaptive cruise control systems now.