Rumors of a fee-based PlayStation Network subscription service, and Sony officially announced the product at its press conference. Starting Tuesday, PS3 owners can sign up for by installing firmware update 3.40.
With update 3.40 come some other enhancements, including a new network-based photo-sharing application that allows users to upload, comment on, and share items on Facebook and Picasa, or between their PSN friends. Other minor tweaks include new power settings (auto-off is now two hours by default), and a rating system for items available in the PlayStation Store.
Sony is also giving PS3 users the ability to edit non-copyright protected videos stored on the PS3's hard drive via the XMB (cross-media bar). Users can also share these videos by posting them to Facebook or YouTube.
Head over to the official Sony PS3 update page for a full in-depth list of updates.