That makes sense for a game like that, hmmm I wonder if the madden and nba live games support it. My brother and his friends always have to take turns, he would be overjoyed if it worked for madden 11.

That is correct, the PS3 can accept only up to 7 bluetooth devices at 1 time.

Fifa 11 and NBA 2K11 support up to 7 players. They've been doing this for a while for most Team based sports games.

This limitation sounds strange because it seems that the Wii can actually have 8 controls synchronized at the same time (Just Dance 2 has local multiplayer mode for 8 people). I wonder how Nintendo is doing it.

There's also bomberman ultra. Up to 7 people on one console, then you can have an eighth over the internet. 

@Op. That was the case from the begining. Also, I believe SONY said a while back you can have 4 move controllers and 2 navs. Not sure why the didn't say 4 moves and 3 navs. Don't see why 3 moves and 3 navs would be a problem though.

could they add another connection via update or does that require some work on the hardware?

That's only six connections...is the eye wireless too?

No, the eye is wired. Which is why I said I was confused about it. As for your above post, it's a hardware limitation. SONY's using a 2006 blue-tooth option. Nintendo's using something else. Most likely some proprietary tech.

Is that more expensive than the 06 option? If not I find it odd they didn't bump it up to an even number when they created the new model.

It makes sense not to bump it up if you think about it. They make a 8 player locally game but earlier ps3 players wouldn't be able to use it. That's sorta... not fair. Look at the PSP for example. The 3000 and up have mics build in but you can still buy a mic attatchment for the older models. 2000 and up have 64MB of ram compared to the 1000's 32MB. None the less, the PSP games are built with 32MB as their limit and owners of newer models just get an option that they can enable or disable for faster load times. I don't think that's an option for blue-tooth unless they forced you to take up a USB port but the bulk of PS3 models sold have only 2 ports as it is.

As for what nintendo's using, I really don't know. I'm just assuming it's their own tech based one what Nint usually does with their consoles. Haven't really looked it up. SONY on the other hand, I noticed that they used the PS3 to promote and expand numerous new technology at the time of release. The Cell (which they helped develop), XDR, Blu-Ray (one can say that SONY's the key reason for bluray's success) and blue-tooth come to mind.

EDIT: Also, what's stopping them from upgrading with each model of the ps3 whenever bluetooth improves? If games were to utilize that it would really divide the userbase. All in all, I think they should stick with their limit at release and have 7 as the PS3's controller count clean and simple.