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Im sorry but the law dont back this up. If you dont upgrade your PS3 youll keep "other OS". The update is not mandatory, they dont force you in updating. Actually they simply dont have (legally speaking) to ever update the console if they dont want too.

That being said, morally speaking, its fucked up that a company advertise a service and highly encourage people to subscribe to it. And then decide that to keep using the service you subscribe to, you have to accept they are going to remove a feature from the product you purchase. I dont aknowledge this, but unfortunately theres nothing, legally speaking to do about this. You personally select to have "other OS" remove from your console when updating.