Standard PKG files must be installed to the internal drive to show up on the XMB. However, if you want a truly portable library where the games stay on the USB, follow this alternative:
To install custom or unofficial PKG files, your PS3 cannot be completely stock. It must run one of the following environments:
The .pkg format on the PS3 is the standard installation package for games, apps, and DLC. It functions much like a .exe file on a PC. In the context of PS1 games, a PS1 PKG is a repackaged PlayStation 1 game that the PS3's system software recognizes as a standard PlayStation Classic title.
Games appear in the "Games" menu without needing multiman.
The keyword "portable" implies mobility. Here is the optimal hardware setup:
Playing PS1 games on your PS3 using the PKG format transforms your console into a retro powerhouse, allowing you to launch classics directly from the XMB (Cross Media Bar) just like digital PSN titles. The Rise of PS1 PKGs on PS3
format, you generally need a modified console (running Custom Firmware or PS3HEN) and specific tools to convert standard game files into packages that install directly to your XMB (home menu). Essential Tools for PS1 PKG Creation
I can provide custom instructions for your exact system configuration. Share public link
