[Update 9:30 AM:] On its official PlayStation Blog, Sony posted that the "problem is being caused by a bug in the clock functionality incorporated in the system" and advises users of pre-Slim PlayStation 3 consoles to not use their systems "as doing so may result in errors in some functionality, such as recording obtained trophies, and not being able to restore certain data." Sony also said: "We hope to resolve this problem within the next 24 hours."

The PlayStation 3 is impossibly glitched-- everyone panic! Apparently, the entire globe is affected, and any game that requires online in order to work is unplayable. The error even affects your system if you haven't signed in to the PSN.

Here's what we know so far:

* According to internet reports, Newer games can't even be played offline.
* PS3s are reportedly affected even if users don't sign on to the PlayStation Network.
* Some aspects of the PlayStation Network are still up, including browsing demoes, updating your system and using the PS3 Web browser.
* The glitch only affects older PlayStation "Fats." According to Sony, the PlayStation Slim, for whatever reason, still works fine.
* The glitch could be internal/hardware related, a clock/calendar issue of some kind.
* Alternatively, some are pointing toward the trophy system as the culprit -- some are reporting that non-trophy games still work with the system.
* There is no fix, yet -- resetting your system clock isn't going to work, nor is anything else we've heard of.

Sony says they're working on the issue, tweeting:

"We're narrowing down the issue and continue to work to restore service to all. Updates as soon as we have them."

and

"Rest assured, we've many people working on fixing this issue. As soon as we have some news, we'll let you know."

For now, just sit tight. More info as it becomes available.

WOW, im scared hhaha

Yeah dont try to connect to PSN till there is fix.

Update [1 p.m. EST]: Sony has an update on its official PlayStation blog; apparently, the problem does in fact affect "the models other than the new slim PS3," and stems from (as suspected) "a bug in the clock functionality."

Sony promises a fix within 24 hours, but here's the scary part: "In the meantime, if you have a model other than the new slim PS3, we advise that you do not use your PS3 system, as doing so may result in errors in some functionality, such as recording obtained trophies, and not being able to restore certain data."
So wait ... "not being able to restore certain data?" What does that mean, exactly? Are our earned PS3 trophies at risk? Hopefully, we'll know more details soon, but I know I won't be the only one who'll be upset if I wake up Tuesday morning to find that my PS3 trophies have been erased.

Source Yahoo

Looks like you should not even turn it on

hmmm, i hope trophies are not at risk, and good luck to sony with fixing it

they are at risk

It's kinda funny that these types of problems are all referred to as 'Y2K bugs', even though there were no real problems back in 2000