The homebrew scene hasn't gotten a whole lot accomplished with this latest round of home consoles -- which isn't surprising given the difficulty of the task and lack of incentives to succeed. Especially with the PS3 shipping with Linux compatibility, the Wii boasting VLC, and the 360 being such a chore to hack and keep hacked, there's really not much of a point. The Wii was compromised pretty early on to be able to play burned discs and GameCube homebrew such as Linux, but until now Nintendo has managed to isolate Wii hardware such as the extra horsepower of the console and wireless connectivity from hackers. But the walls are coming down. Some hackers from Germany have just showed off their fully hacked Wii at the 24th Annual Chaos Communication Congress. Nothing fancy is running yet, all they've achieved so far is a proof of concept that they've bypassed the Wii's protection with some encryption codes they swiped from the Wii's memory. Apparently a bootable Linux DVD is on the way, and we can't wait to see what homebrew coders manage to pull off with that Wiimote pointed where it belongs.

The Wii, officially “hacked”? | WiiNintendo
Nintendo-Scene,com is reporting of an interesting presentation that took place at the 24th Annual Chaos Communication Congress (24C3) right now; it would appear that a fully hacked Wii capable of running native homebrew with full hardware access has been presented.

From the report:
The guys over at 24C3 just demoed a Wii hack that is set to provide native Wii homebrew in the near future (not running in GC mode, and with full access to all the Wii hardware!)

They were able to find encryption and decryption keys by doing full memory dumps at runtime over a custom serial interface. Using these keys, they were able to create a Wii ‘game’ that ran their own code (their demo happened to show live sensor/Wiimote information, amongst a few other things).

Someone was able to start Homebrew in Wii-Mode. The video [in English] is from a hackers event in Germany. It’s mainly about the xbox 360, but at the end they speak about wii and show own Code injected in Lego Star Wars. More information: wii homebrew.

I’ll keep this post updated as more news/images/video come in.

Update 1 - View the video on YouTube

Update 2 - (From GBATemp forums) There is a “Lightning Talk” with the topic “Console Hacking: State of the Wii” by Ben Byer+others on, Sun, 17:15–19:30, this is central European time (I think) and there is a live stream:
mms://streaming-internet.fem.tu-ilmenau.de/saal3