Sony explains lack of PS3 Slim Linux
Source: (c) 2009 Sony Computer Entertainment Inc. In a forum response, Sony have explained why the "OtherOS" option, which allowed the Playstation 3 to run Linux, has been removed from the new Slim version of the games console. Sony say that to offer the hypervisor that was used to implement the OtherOS support they would have to update and maintain it for the significant hardware changes made to create the PS3 Slim. As the key objective was to reduce the cost of the game console, the company decided to drop the Linux support.
A report on GamesILike blog noted though that a Sony representative had also responded to fears that the previous versions of the Playstation 3 would have their "OtherOS" support removed in a future update, saying on a developers mailing list "Please be assured that SCE is committed to continue the support for previously sold models that have the "Install Other OS" feature and that this feature will not be disabled in future firmware releases".