Converting a PS3 game from an ISO format to a PKG (Package) file allows you to install it directly onto the PlayStation 3's XMB (XrossMediaBar), making it appear as a digital game. This process is generally used by users with (Homebrew ENabler) or CFW (Custom Firmware) to avoid using external launchers like multiMAN. Prerequisites
This is where repacking shines. Before building, you can: convert ps3 game iso to pkg repack
Several tools and software are available for converting PS3 game ISO to PKG repack. Some popular ones include: Converting a PS3 game from an ISO format