its currently in very good shape. it used to be that 3rd party games would have all kinds of lag and dropout issues, but pretty much everybody has since gotten a hang of psn and the ps3 so online play runs very smoothly. online play is still free, so theres a very good system in place for gamers.
Admittedly, I don't play online games very much, but the few times I have I didn't come across anything that I would complain about. Seems like a fairly good service, and the price is right.
Pretty good in my opinion, although the quality does seem to vary greatly, depending entirely on what game i am playing on-line, e.g LBP running like crap, but KZ2 running smoothly. But since it's free, i can't really complain.
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