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kungfuruss posted a video on YouTube for those interested, and the steps are outlined below as well:

1. Select a game icon.
2. Press triangle.
3. Select and click on Info.
4. Select and click on Album.
5. Enter a name, this will be the folder name, by pressing start.
6. Press O to go back.
7. Press triangle again.
8. Select and click on Group Content and select By Album.
9. Voila, your games are now neat and tidy.





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