Plug the USB into the right-most port of your PS3. Navigate to Game > Package Manager > Install Package Files > Standard .
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Before diving into the download process, let’s clarify the format. A PKG (Package) file is the official installation format for PlayStation 3 digital titles, updates, and DLC. When you purchase a game from the now-limited PlayStation Store, you download a PKG. Plug the USB into the right-most port of your PS3