Instructions
Lift the PlayStation 3's storage drive lid on the front of the console, and insert the memory stick, memory card or CompactFlash card into the corresponding port.
Turn on the television and push "Power" on the front of the PS3 to boot up the console.
Tap the down button on the console's game controller to scroll down to "Settings." Tap the right button and select "System Settings."
Scroll to "Format Utility" and push "X" to select the menu option. Highlight "Yes" and press "X" to confirm you wish to format the inserted drive.
Remove the drive from the PS3's port after the formatting complete message appears onscreen.