To use PKG files on a physical PS3, you typically need custom firmware (CFW) or homebrew tools:

file is a compressed archive format used by Sony to distribute and install software, updates, and downloadable content (DLC) on the PlayStation 3

—tiny 16-byte licenses—to tell the console a user legally owned a digital game. Without this license, a PKG is useless. 3. The Quest for Preservation

: Most community members advocate for "dumping" your own physical collection—converting discs you own into digital files for personal use.