If you have Linux installed on a partition on your Sony Play Station 3 then Sony might not be happy and will probably not allow you to use any other OS on your PS3 in it’s next update. Sony has warned all PS3 users who have Linux installed on their consoles to back up their valuable data before installing the new update.
In it’s official blog post, Sony warned:
If you currently use the “Other OS” feature and you wish to update to system software 3.21, make sure you back-up any data stored within the hard drive partition used by the “Other OS,” as they will not be able to access that data following the update.
If you choose not to update to firmware 3.21 only then you would be able to enjoy the Linux you’ve installed but then you will not be able to stream copyrighted videos from the media server but you could still play games on the console offline.
The decision of no “OtherOS” support in PS3 firmware stems from the security threats the faulty Linux partition has been facing from hackers.
Sony is seeding the firmware 3.21 for anyone who connects to the PlayStation Network. DO NOT upgrade if you do not want to lose your data and your dual boot because. Geohot has already warned not to upgrade