A controversial update which was seeded by Sony in order to remove the ability to run Linux on the Playstation 3 games console has caused a storm of complaints.
The 3.21 firmware upgrade, which removes the security hole provided by the 'Install Other OS' widget used by lots of educational institutions and hackers alike, also removes the console's ability to play games or connect to the Interweb according to forum posts, turning it into a very expensive doorstop.
Some users are reporting infinite loops where the installation routine never completes, others are complaining about the inability to use a variety of different controllers during the process.
Plenty of people who have been lucky enough to get the install to work are saying that Internet connectivity after the upgrade is sluggish, non-existent or subject to frequent unexplained disconnections.
Others are reporting problems with random screen resolutions and HDMI connections no longer working.
Many users who have elected not to install the obviously broken update are complaining that they cannot connect to the Playstation Network or play online games. Some are even saying that the consoles will no longer play or eject Blu-ray disks.
Tin-hatted conspiracy theorists are suggesting that Sony wants to get old fat PS3s out of circulation as it seems to be the portly version which is having the most problems.
http://www.thinq.co.uk/news/2010/4/7/sony-...t-playstations/
EDIT: Having reported the news on problems after updating, only few Fat ps3 users have been facing issues.
For safety sake, hold on till things clear up.