This issue from a few sources, IGN and so on seems to be a BIOS system clock error. Since the clock was set to a date before a date the PS3 can handle, it does not allow teh PS3 copyright protection to run correctly. The issue with games not running is an error in the copyright protection that the PS3 uses. This will cause all copyright protected game to no run properly, whether they require an internet connection or not.
The only way I can see past this issue is if PS3 releases a download-able firmware update that bypasses or fixes this issue.

Granted, this has not yet been confirmed by Sony, so it may be a little bit of hogwash.

You decide.

my guess is not all ps3 phat's would have this issue because when they switched from 90nm scale the first reduction was to 64nm scale which also showed a reduction in size for other component's . thus i would say theat the Bios chip may not have been the same in the later model's as it was in the other PS3 phat's.

that's the only thing i can gather. it would indeed make sense, because the slim and there are certain ps3 phat's that work just fine what i gathered. so far.

Well what happened to the patch by morning time? :(

couldnt we just pull out the cmos battery? lol

Thanks for the info!! I checked and my trophies are really there.

You really helped a man from having a heart failure.

thanks man. Looks like its PC gaming until they fix it

So this is a hardware issue? So if it is this bios chip how does making a firmware update help? It still wont connectto the network right?

Be cool, they're safe. Just like joeorc said.

Check the Official Playstation 3 site just to be sure.                     

As far as I understood it this is what happened:

Its the system clock it has NOTHING to do with the PSN. The Anti piracy measures start to work because the system Clock is messed up ( You cant influence the system clock its useless to change the date or time. 

if you download stuff (full games,Dlc) or have certain games installed the system noticed the time when you did this but if the system clock shows a date prior the install the system thinks that you changed the clock somehow to hack the system and nothing will work. Also it messes up your trophies because the time you won them and the time the system says it is dont adds up so they just vanish but they are saved anyway on sonys server so they arent away.

This problem has  nothing to do with beeing Online in fact it is even helpful if you were connected during the incident. Because your system was synced with the PSN Clock so nothing happened. If you switch off your system after midnight everything should work fine. Also I think that the PS3s system clock works internaly with GMT time so all systems work with the same time and the system cant be messed up. The problem actually occurs to a total random time depending on the time zone you live in.

AT people mentioning their 160gb works:

ALL PHAT PS3s with CECHL or CECHP work fine because they have another motherboard. That means that most PS3s bought 2009 will work fine. 

Also 160gb should always be secured and most 80gb too (non BC)

As far as i understood it are mainly 20gb BC, 60gb BC, 80Gb BC, 40Gb and the older 80gb (non BC) affected.

If you repaired your system or it was repaired it could also be safe even though you have some of the old models. 

that's what is the most likely option that is those with an access to the internet, those with no access would have to be sent a CD containing the update. or the consumer would have to send it in, though it would be easy on Sony just to send out a disc.

every PC i have worked on in the past several year's have had to have their BIOS updated atleast once.

so this is not something new, but I guess it is in the Game console arena, I guess there is a first time for everything,