Let’s break it down.
In the early days of the PS3, games were distributed on Blu-ray discs, which were expensive to produce and ship. As the console gained popularity, developers and users began looking for ways to reduce costs and increase game accessibility. The PKG file format was introduced as a solution, allowing games to be downloaded and installed directly to the console's hard drive. pkg ps3 games
You need a USB drive formatted to . The PS3 cannot read exFAT or NTFS for installation purposes. Once formatted, you must create a specific folder structure on the root of the drive: PS3 > UPDATE (While the UPDATE folder is used for firmware, for packages, you generally place them in the root or a folder named PS3 depending on the tool used, though the XMB "Install Package Files" standard usually looks at the root of the USB drive). Let’s break it down