It's in the official press release:

Ø Removal of “Install Other OS” feature :(

Michael
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Team Linux Users Everywhere

I do not understand. Why would you move ps3 work units? I have machines working them. Please explain what you are thinking.

Well, I will not do any updates. The machines are first-most dedicated to this project. If the base of machines starts to decline, and this project abandons PS3, I hope that this is posted well in advance. I do not check my machines very often. -Luckily there are a couple of other projects for the PS3 out there.

I hope Sony shows sympathy with customers who already have bought their machines, with the understanding that Linux will also work. I do not know if they understand that a decision like theirs removes all my interest in booting up the game os, ever again. Of course, my current game library poses no threat. However, new games usually require updates. So, I will certainly stop buying games. -I cannot understand how they dare open themselves up for possible law suits.

I will also eventually move over to gpu based computing. Seems so much more efficient. However, this may take a while. The ps3 has had its glory days, soon it will be just another underachiever. Maybe Sony's decision reflects their knowledge that the ps3 is not suitable for distributed computing any longer. It certainly uses much more electricity than a gpu for the same amount of work.

Well, it has been fun. I had a lot of fun with my ZX81 also, yet, now it is no more.

Do you have a timetable for shuttind down the PS3 part of the project?
For my part I am ready to keep my 2 PS3s running 24/7 as long as you provide them with the WUs, but I understand the lack of interest to support a dying (from your point of view) architecture. Of course, I would hope you continue as long as possible, because PS3s are no use in any other project (SETI and yoyo are possble but the efficiency is ridiculously low)

I have read those rumors as well. I just installed YDL the other day and have invested far too much time configuring, tying down, updating, sendmail, apache, samba, ssh, etc. Not to mention downloading, compiling, and installing lynx, pine, imap/ipopd, etc.

The PS3 here has mainly just been a BluRay player, but recently got another BluRay player now that the prices have dropped. Don't even have any games, other than a few downloads. (Games are what the XB360 is for.)

Likewise, I won't "upgrade" if these rumors prove to be true. If Sony does drop "Other OS" support, I'm sure it won't be long before someone out there comes up with a boot loader, but it is still going to piss a lot of people off. The PS3's alternate OS "support" will be remembered as just another "proof of concept" experiment or even a "tax exempt scheme" (can you say, "PS2 Linux Kit?"). (Sony tried to get around some EU taxes that apply to game consoles, by stating that the PS2 was a "computer" since it could run Linux.) Anyone installing this rumored update is going to find the "Other OS" option gone. They are also going to quickly realize that the only way they will be able to recover their Linux HDD space is to reformat the HDD -- losing all their game saves if they don't back them up and also require re-downloading all their PS3 downloads.

I can't see Sony being this stupid.

Oh wait, yes I can...
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In Primegrid it is possible to use the ps3 in their AP26 search. Work in progress still, but about as efficient as a quad core now (which is not bad). Hopefully more improvements will be made. But already I'd consider this a project that puts the ps3 into good use.

http://www.primegrid.com/forum_thread.php?id=1420

I still prefer gpugrid, or as it was first called, ps3grid. :-)

So, I guess we wait for September to see what it brings.

Thanks for the info about primegrid, I will have to check that.

Apparently the otheros will work on older ps3 (non slim) even when the 3.0 update is applied. That sounds just great. :-)

http://www.primegrid.com/forum_thread.php?id=1420#17859 - see post from 4 september

Happy crunching everyone!

I can now report that I can still switch to my Yellow Dog linux after updating to version 3 of the xmb. So, it seems that it indeed is only the Slim which does not have this possibility.

You can use an old installation of "other OS" like Linux further after update for GameOS 3.01. Only offers GameOS 3.01 no official possibilities anew to instal "other OS".

Just upgraded to 3.01, both the options to boot into and install other OS's are still there. If anything, Sony actually even took Linux into consideration when they did the update. I noticed the "clock set error" no longer happens on boot. I always just ignored it and figured it was due to the the funky Cell processor. Linux boots up perfectly clean as a whistle now. Straight green OK's down the middle.

Haven't done a whole lot in the PS3 OS. I only used it for Bluray movies and sometimes to stream content from a PC (TVersity), but things do seem a little "snappier" than they were. I'm pleased with the update.
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Just upgraded to 3.01, both the options to boot into and install other OS's are still there. If anything, Sony actually even took Linux into consideration when they did the update. I noticed the "clock set error" no longer happens on boot. I always just ignored it and figured it was due to the the funky Cell processor. Linux boots up perfectly clean as a whistle now. Straight green OK's down the middle.

Haven't done a whole lot in the PS3 OS. I only used it for Bluray movies and sometimes to stream content from a PC (TVersity), but things do seem a little "snappier" than they were. I'm pleased with the update.
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I may have misunderstood it, but the article only refers to the "new" PS/3 model, the slimline version - not current versions. So perhaps there will be a firmware for the new version and a different firmware for the current Playstation. At least the article states:

Other features of the new PS3 include:
Ø PS3 system software update version 3.00