PS3 Slim doesn't do Linux
Source: Sony Sony's announcement of the new PS3 Slim, a smaller, more power efficient version of the PS3 console, comes with a sting in the tail for the Linux community. Previously, the PS3 had sported an "Install Other OS" menu option which allowed the user to repartition the hard disk and install a PowerPC Linux distribution such as Yellow Dog or Ubuntu. For the PS3 Slim this option has been removed. The ability to install Linux had allowed some groups to sell clusters of the games console and run software which made use of the Cell processor for computation. PS3 clusters have been used, for example, for cracking cryptography.
According to the official press release, Sony say "The new PS3 system will focus on delivering games and other entertainment content, and users will not be able to install other Operating Systems to the new PS3 system". It is unknown if this change will also apply to existing PS3 systems, especially with the announcement of a soon to be released Firmware 3.00 update for the PS3.