A: No. Your local saves remain intact. The error only blocks online sign-in and PSN features.
: Use a PC to confirm your USB drive is using the FAT32 file system. The PS3 cannot read NTFS or exFAT drives for system updates. ps3 8002f2b5
The error is particularly insidious because the PS3 often attempts to verify and install the update every time the console boots up. If the update fails, the console restarts and tries again, leading to an endless cycle known as an "update loop." the console restarts and tries again