Sony announced the 2.60 firmware update for the Sony PS3 and today it is already available for download on the Playstation Network.
The big new feature is the new Photo Gallery application where you can group photos in various ways including by date and time, by event or by the number of people in the photos – you can even create a playlist that groups expressions (e.g. smiles) or age categories, like adults and children.

You can also create a playlist of selected photos and select a photo frame for the playlist, which can also be played with your own music tracks. Other features of Sony PS3 firmware 2.60 include Guest access to PlayStation Store and DivX 3.11 support.
I am really getting worried if Sony can pull around the Sony PS3. Such a nice hardware, but they seem not to be able to land the big must have game or application. Playstation Home was not it. At $400 console price this will also not be possible anymore.