kungfuruss shows us a very simple way on organizing games on the XMB.
- Select a game icon.
- Press triangle.
- Select and click on Info.
- Select and click on Album.
- Enter a name, this will be the folder name, by pressing start.
- Press o to go back.
- Press triangle again.
- Select and click on Group Content and select By Album.
- Voila, your games are now neat and tidy.
[Source: Sony PS3 Modding - Homebrew, Upgrades, Mods, and Hacks]