Linux on PS3...A new report by Ars.
Ars discusses possiblity of linux on the PS3 and what that will mean for homebrew and linux enthusiasts.
Ever since the announcement of the PlayStation 3's November release date, the Internet has been abuzz with discussion over the promise of Ken Kutaragi's brief mention of Linux. However, as Kutaragi has been known to make statements that were subsequently changed (for example, in 2005, he said that the hard drive for the PS3 would be optional) many people held off on assuming that their shiny new PS3 would come prepackaged with Penguin goodness.
Now, more recent comments at E3 by SCE network system development manager Izumi Kawanishi suggest that each new PS3 will likely come not only with Linux preinstalled, but also a compiler and a set of development tools. If this is true, the PS3 might become the system of choice for Linux enthusiasts and homebrew developers.
Read more straight from the source @ ARS TEchnica

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