UPDATE 03/02/10 8:00 a.m.: Sony said that the glitch that caused PS3's around the world to crash has been fixed. The problem stemmed from the old PS3s incorrectly making 2010 a leap year, causing data loss, connection problems, and games to malfunction.

Sony said on its blog that the problem resolved itself once the PlayStations' internal clock switched from "Feb. 29" to March 1 GMT.

"If the time displayed on the [XrossMediaBar] is still incorrect, users are able to adjust time settings manually or via the internet," Sony said via their PlayStation blog.

UPDATE: Sony has warned that until the solution is found to their network glitch, gamers SHOULD NOT attempt to play games, because they might lose their saved data.

Sony also said the glitch was likely caused by a bug in the clock functionality, reminiscent of the Y2K bug a decade ago. They "hope to resolve this problem within the next 24 hours."

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Tens of thousands of PS3 owners were booted from the Playstation Network (PSN) on Sunday as a glitch in the PS3 software blocked players from logging on to the internet to play the online component of their games.

When trying to connect to the network, users would be be prompted with the error code: 8001050F - Hardware failure. Cannot update Firmware or connect to Internet.

Aside from having PS3 not being able to connect to the internet, some have been noticing that the date has changed on their system, saved data, vanishing trophies, and that many of their games aren't working properly.

As of Monday morning, the network crash remains unresolved, but Sony is issuing news updates via their PS3 blog and twitter feed.

The last two twitter updates are: "Readers/followers are confirming that "slim" units (120/250 GB models) are connecting normally," and "PSN status update: We're narrowing down the issue and continue to work to restore service to all. Updates as soon as we have them."

This was at 11 p.m. on Sunday.

The glitch appears to only be affecting owners of the original "fat" model, while all slim models seem to be working fine.

Considering this issue affects the PS3's ability to directly connect to the internet, it's not clear how Sony is planning to issue the fix. It seems like it might come in the form of a patch that user will need to download via their home computers into a flash drive.

The folks over at the examimer.com have contacted Sony, and were told the issue would be fixed by Monday morning and that there is no need to fear lost trophies or save data.

There is no word yet from Sony, and is now pushing towards noon...