3.50, as reported by angry PS3 owners, blocks third party peripherals, accessories and USB storage devices.
Sony's response was that the ban would block "dangerous counterfeits," mainly controllers that Sony says have a chance of exploding. Most seem to think the move is a way to stop more products from being used to jailbreak the console.
Users have claimed that Mad Catz's 2008 Wireless PS3 GamePad, 2008 Wired PS3 GamePad and PS3 Wireless MicroCon have all ceased working after the update.
Says the accessory maker: "Mad Catz would like to take this opportunity to put gamers' minds at ease. With the exception of a small quantity of controllers sold before 2008, we believe that all Mad Catz products will continue to function as they did prior to the 3.50 Firmware update."
"Any consumer who owns a Mad Catz product and is experiencing an issue, including an issue with the PlayStation 3 Firmware update should contact Mad Catz customer services. Providing the product is within warranty, Mad Catz will be happy to offer a suitable replacement."