My wifi works fine, I can sign in, updating system software works 100% of the time but when updating games, the two major games i play for the moment as a sort of 30-45 min break, (battlefield 3 and COD MW3), it requires me to quit and retry an indefinite amount of times, it's ridiculous. So far i've triedat least 20 times, still no go. I'm sure there have been questions like this already, this is my first time on the forum asking for help or info.
One major problem may be that you are depending on WiFi for your updates. Though WiFi (wireless) can be great, it is subject to more lag and disconnect issues than a wired set-up.
Other electronics, barriers (walls, floors) and the weather can affect the signal. And multiple devices using the same router can interfere, too. I suggest moving your PS3 closer to the router, and away from walls and electronics. You want a closer and direct signal between your console and router. And try not to have other device running at the sametime that you are downloading an update.
But the best option is to change your PS3 set-up to wired. The direct signal is usually more powerful that wireless, which spreads the signal out rather than having one that is concentrated.
I think the latest optional firmware 4.11 may address your problem. Visit the system update command to download the latest update from the online server.