SATA Drives Work the Best
Any type of external hard drive works on the PS3, including the large terabyte ones. Though the PlayStation 3 prefers serial advanced technology attachment (SATA) hard drives formatted with the FAT32 file storage system, any FAT32 file storage system should work.
Offical PS3 External Hard Drives
In early 2010, Sony announced that it would be releasing official PS3 hard drives. While not in the terabyte size range, they offer quick plug and play so that no formatting is needed.
Prices
As of 2010, one terabyte (TB) external hard drives start at anywhere from $59 to thousands of dollars depending on the model's specifications and the manufacturer. Some of the well-known SATA hard drive manufacturers include Axiom, Fan tom, Iomega,Overland Data, Toshiba and Western Digital.