Version 4.00 introduced a major upgrade to the underlying SNE system which changed the mechanism used to install new firmware.

If your current version is older than version 4.00, then your upgrade must be performed in stages:
Current Version: 3.52 or older

Current Version: 3.6x

Current Version 3.70:

Current Version 4.00 or newer:

All SNE releases from version 4.00 onwards are upgraded using the Web-based method. Please see the Release Notes and Instructions for the relevant release.

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