Below are the details, to quote: At this year's Gamescom press conference, we announced that Online Game Save Storage will be upgraded to 1GB for PlayStation Plus members, and I'm happy to report that the increase will be available soon with PS3 system software update (v4.25)!
To sign up for PlayStation Plus, go to PlayStation Store on your PS3, or click here.
After you've installed the update, simply go to the Saved Data Utility under the Game column of the XMB. From there you can access the Online Storage folder and find any existing game saves already uploaded, as well as the increase in space to 1GB.
So set your automatic download to upload every game save for every compatible game you play and enjoy the additional breathing room. You can also continue to use this feature to selectively upload game saves you specify.
Stay tuned for the latest info on future updates.
Update: It appears some users are experiencing issues with the PS3 4.25 Firmware update, as noted by Joystick_Warrior on Sony's board HERE.
Finally, in related news itskamel has released a 355CEXKAMELPSNACCESS.PUP which is a 3.55 CEX MFW 4.25 Spoofed for those interested stating the following:
Alright well here is a 355 CEX MFW built by me, using MFW builder. This was not my original intention to release this like this, but i will continue on the original mission, and if I ever get there then you will see it but until then use this if you like.
patched for peek and poke
patched to install debug pkgs
psn passhrase implemented (not working atm)
The pup is named 355CEXKAMELPSNACCESS.PUP (This is just the name, rename it to "PS3UPDAT.PUP") Like I said psn was my main objective (direct connect / without fckpsn), and im still working on it, so don't be confused by the name of this pup. enjoy or not. I really don't care.
WARNING: I have tested this on my slim that I use for testing and it works fine, so if something happens to your ps3 its not my fault. YOU HAVE BEEN WARNED.
Update: Itskamel 355 CEX MFW + PSN (no FckPSN needed) is now linked above, and finally I got it done but not without the help of an anonymous person, that gave me the proper vsh.self, index.dat, and version.txt files. For some reason I just could not get it right, every time I would use mine i would get black screen on boot.
3.55-CEX-KAMEL-PSN-ACCESS (no need for FckPSN)
So without further delay here is a 3.55 MFW built with patches below.
Peek and Poke
Install Debug pkg files
Spoofed to 4.25
Patched for direct connection to PSN
Backup your original files for later use or if you want or just re flash the firmware.
My guess is to block PSN access for CFW primarily, but at the same time put new encryption keys in there, so future games get harder to crack... must be related to the crazily releases of all the games patches fixes during these couple weeks (3.60+ - 3.7x+ games blocking are almost non-existence now) The scene is on fire again the past month! Hurray again for propJoe and others who devote their time and energy to make the scene alive again.
I can confirm CFW PSN access is working just fine. I saw this update last night and updated my OFW PS3. But didnt check my CFW. Logged in this morning (1 hr ago) and I was able to sign into PSN using my CFW.