Making games for the ps3 using linux is possible. Only 2D up until now.

The people from ps2dev seem to have some 3D going on from linux. http://forums.ps2dev.org/viewtopic.php?p=60980#60980
and a movie showing it: http://youtube.com/watch?v=vuRLsB2q7QY

I believe freepascal can work on the ps3 directly because of it being powerpc. That would be http://www.freepascal.org/down/powerpc64/linux.var .

I cannot test this as i do not own an ps3.