In early 2010 Sony announced that they would no longer allow for Linux on PS3. For years people have been purchasing the PS3 specifically because it has Linux. Many people liked this feature because it meant that the gaming system had great backwards compatibility, which is important to a lot of serous gamers. The PS3 was originally marketed with Linux so consumers are now frustrated and angry over the change. In fact, the original purpose of Linux on PS3 was to give gamers a new and unique toy to check out. Now they are taking it away.
There is actually a class action law suit in place over this issue. The law suit claims that Sony is taking away much of the functionality of the unit. Not only is it taking away the functionality of the unit, it is also taking away a feature that was advertised on the product, which is important to many people as that is why they purchased the console.
Sony actually released a firmware update that disallows the Linux OS on the console. Owners of the PS3 didn't have to download the firmware, but those who chose not to have limited access to PS3 features, such as the PlayStation Network. As a result, players were literally forced to choose the firmware or basically have a piece of gaming equipment that did very little of what it was advertised to do. Obviously, millions of people have been affected and are waiting to see what the result of the lawsuit will be. For people who still want linux on ps3 there is PS3 Magic.