The PS3 network error issue has taken something of a nasty turn, as developers are now experiencing an "endlessly looping error message" which is rendering debug units useless.This follows rumours and concerns that the problem is not that of PlayStation Network, but in fact hardware specific - only 'fat' PS3 units have been affected by an error message that not only locks players out of PSN and their games, but has corrupted data in rare instances too. 'Slims' are unaffected.
Debug PS3 units are, by design, based off of the original 'fat' hardware - if developers can't get in to the console in order to test their work, then the impact on the console's software lineup could be devastating without sufficient support from Sony.
Develop reports that the issue is suspected to be related to the internal clock of the older PlayStation 3 hardware - it being the 1st of March, we can only assume that someone in Sony's engineering crew didn't account for a February leap year.
Joystiq supports the theory with a report that even offline consoles are being taken out, with the system's clock reverting to 12/31/1999 and resulting in corrupted data because of it.
Sony has already responded to SPOnG on the matter, and has said on Twitter that it is working on a solution.