Sony has officially released the PS3 firmware update version 3.42 and making it mandatory for Play Station 3 users to upgrade their Play Station firmware to continue accessing the PlayStation Network and Store. Currently Play Station 3 is running on firmware version 3.41 which was modded / jailbreaked to run games from backups. The major jailbreak work was done by PSJailbreak, and later we saw free open source versions of PlayStation 3 jailbreaks including PSGroove using iPhone and Texas Instruments Calculator.
According to a Sony representative: “But as we always have, we will continue to take necessary actions to both hardware and software to protect the intellectual content provided on the PlayStation 3.”
On the other hand, PSGroove jailbreak developer, MuscleNerd has warned the Play Station users not to upgrade their firmware via Sony. They will launch a modded USB firmware upgrade which will preserve the Play Station 3 Jailbreak.
MuscleNerd twitter status : (USB key based upgrade from < 3.41 remains possible…just don’t accept Sony’s 3.42 if you go online)