The next PS3 firmware update (v2.60) is designed primarily to enhance the system's media capabilities. The key feature that Sony has added is a new Photo Gallery application, which allows users to sort and display their digital photos.
Pictures can be organized into groups according to various criteria, including the camera used to take the photos, the event date and time, colors in the photos, as well as the number, ages, or facial expressions of the people pictured. You will also be able to create slideshows set to music and build photo playlists.
After you update your PS3's firmware, you will need to install the Photo Gallery application separately from the XMB. To install the Photo Gallery application, go to the Photo section on the XMB, select Photo Gallery and press the X button.
The 2.60 update also includes:
Guest access to PlayStation Store – This enables non-PlayStation Network members to browse through the storefront to check out the latest games, demos, videos, etc.
DivX 3.11 support – Videos in this format can now be played on PS3.
Here's a video walk-through that they posted over at the Playstation.Blog: