If you have a PlayStation 3, then you've probably updated your home video game console to the latest and greatest firmware version from Sony. If you're not already taking advantage of the 3D support for Blu-ray discs, or looking forward to looking at 3D panoramic photos, then perhaps you've been kicked in the shin with the latest update. Consumers are beginning to report that the update to version 3.50 has caused some USB peripherals to lose their functionality, including many "counterfeit" PS3 controllers.
Sony is cracking down on their system. They began by making sure that the "other OS" feature was removed, and subsequently made sure that jailbreaking or hacking your PS3 was not only frowned upon, but out-right disabled. And now it seems that Sony is cracking down on counterfeit controllers. While it hasn't been out-right confirmed that this firmware update specifically is designed to do just that, Sony has said (coincidentally enough, on the same day that the v3.50 update was released) on their blog, that subsequent firmware updates would mean that those counterfeit controllers, as well as some other hardware devices, would no longer be compatible with the console.
If you have a third-party controller that's been officially licensed by Sony, then there doesn't seem to be any problems. However, several PS3 owners are reporting that peripherals like the Yobo PS3 Joybox, the XCM Cross Battle Plus Adapter, and the USB controller SplitFish FragFX are losing their compatibility, too. And SCEA has been busy informing those that the company "does not support continued functionality of unlicensed controllers." Are you having your own problems with the v3.50 firmware update? Let us know in the comments.