Congratulations: your PS3 is about to receive another firmware update. Sony has just announced the details for firmware 2.70, which includes in-game text chat for up to 16 people at a time. Check out the video after the break to see how it works. Additionally, you can now sort friends in your friends list alphabetically by online status and last login time. Files you send to your friends can now be as large as 3MB.

For those of you in the US, this firmware update also allows you to transfer video files from the PSN Video Store between the PSP and PS3. No word on when this update will hit, but it shouldn't be long. Judging from previous releases, they usually go live the morning after the PlayStation Blog posts the info. We'll keep you informed.

[Update] 2.70 is now live. The pre-download patch list details the following additional features:

  • The ability to search the net about a particular game direct from the game section of the XMB using the triangle menu
  • The ability to cut and paste text (does that mean the PS3 is better than the iPhone now?)
  • A Dynamic Normalizer to prevent sudden increases in volume between music tracks
  • In-game voice chat (not really!)

This article was originally published on Joystiq.

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