Yes, it does. You hit the little "PS" button to turn it on and when you want to turn it off, you hold the "PS" button and a menu appears and allows you to turn off the controller, reassign the controller, or turn of the system.
Well, most people leave their PS3 in Standby mode....I do. What's the point of being able to use the controller to turn the PS3 on/off if you're gonna flip the main power switch in the back??
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