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Before you can install any unsigned PKG files or run backup games, your PS3 console needs to be "jailbroken" or have a homebrew enabler installed.

A file is a digital distribution format used by Sony for the PlayStation 3 to deliver games, updates, and DLC. Unlike ISO files (which are 1:1 disc images), PKGs are "installed" to the system and appear directly on your XMB (main menu). Ps3 Pkg Games Roms

Use an NTFS or exFAT formatted USB drive alongside a PS3 homebrew tool like IRISMAN or PrepISO to allow the console to read the drive. Alternatively, you can split the PKG file using PC software like PS3Splitter . Installation Steps on PS3 Before you can install any unsigned PKG files

The main difference between PS3 PKG games and ROMs is that PKG games are the official format used by Sony for distributing games on the PS3, while ROMs are often created by copying a game's data from a physical copy or by ripping a digital copy. Use an NTFS or exFAT formatted USB drive

The Ultimate Guide to PS3 PKG Games and ROMs: Everything You Need to Know

Leave the USB drive containing the exdata folder plugged into the console. Launch the newly installed game from your XMB.

If the game requires a .rap license file, create a folder named exdata on the root of your USB drive. Place the .rap file inside that exdata folder. Step 2: Install the PKG Plug the USB drive into the rightmost USB port of your PS3. If using PS3HEN, launch from the XMB.