diff --git a/frontend/drivers/platform_ps2.c b/frontend/drivers/platform_ps2.c
index 43069f2894..3dcd07f32b 100644
--- a/frontend/drivers/platform_ps2.c
+++ b/frontend/drivers/platform_ps2.c
@@ -38,53 +38,67 @@
 
 static enum frontend_fork ps2_fork_mode = FRONTEND_FORK_NONE;
 static int bootDeviceID;
-char cwd[FILENAME_MAX];
+static char cwd[FILENAME_MAX];
 
 static void create_path_names(void)
 {
    char user_path[FILENAME_MAX];
 
-   /* TODO/FIXME - third parameter here needs to be size of
-    * rootDevicePath(bootDeviceID) */
-   strlcpy(user_path, rootDevicePath(bootDeviceID), sizeof(user_path));
-   strlcat(user_path, "RETROARCH", sizeof(user_path));
+   sprintf(user_path, "%s/retroarch", cwd);
+   fill_pathname_basedir(g_defaults.dirs[DEFAULT_DIR_PORT], cwd, sizeof(g_defaults.dirs[DEFAULT_DIR_PORT]));
 
    /* Content in the same folder */
+
    fill_pathname_join(g_defaults.dirs[DEFAULT_DIR_CORE], cwd,
          "cores", sizeof(g_defaults.dirs[DEFAULT_DIR_CORE]));
    fill_pathname_join(g_defaults.dirs[DEFAULT_DIR_CORE_INFO], cwd,
          "info", sizeof(g_defaults.dirs[DEFAULT_DIR_CORE_INFO]));
 
+   /* user data */
+   fill_pathname_join(g_defaults.dirs[DEFAULT_DIR_ASSETS], user_path,
+         "assets", sizeof(g_defaults.dirs[DEFAULT_DIR_ASSETS]));
+   fill_pathname_join(g_defaults.dirs[DEFAULT_DIR_DATABASE], user_path,
+         "database/rdb", sizeof(g_defaults.dirs[DEFAULT_DIR_DATABASE]));
+   fill_pathname_join(g_defaults.dirs[DEFAULT_DIR_CURSOR], user_path,
+         "database/cursors", sizeof(g_defaults.dirs[DEFAULT_DIR_CURSOR]));
    fill_pathname_join(g_defaults.dirs[DEFAULT_DIR_CHEATS], user_path,
-         "CHEATS", sizeof(g_defaults.dirs[DEFAULT_DIR_CHEATS]));
+         "cheats", sizeof(g_defaults.dirs[DEFAULT_DIR_CHEATS]));
    fill_pathname_join(g_defaults.dirs[DEFAULT_DIR_MENU_CONFIG], user_path,
-         "CONFIG", sizeof(g_defaults.dirs[DEFAULT_DIR_MENU_CONFIG]));
+         "config", sizeof(g_defaults.dirs[DEFAULT_DIR_MENU_CONFIG]));
    fill_pathname_join(g_defaults.dirs[DEFAULT_DIR_CORE_ASSETS], user_path,
-         "DOWNLOADS", sizeof(g_defaults.dirs[DEFAULT_DIR_CORE_ASSETS]));
+         "downloads", sizeof(g_defaults.dirs[DEFAULT_DIR_CORE_ASSETS]));
    fill_pathname_join(g_defaults.dirs[DEFAULT_DIR_PLAYLIST], user_path,
-         "PLAYLISTS", sizeof(g_defaults.dirs[DEFAULT_DIR_PLAYLIST]));
-   fill_pathname_join(g_defaults.dirs[DEFAULT_DIR_REMAP], g_defaults.dirs[DEFAULT_DIR_MENU_CONFIG],
-         "REMAPS", sizeof(g_defaults.dirs[DEFAULT_DIR_REMAP]));
+         "playlists", sizeof(g_defaults.dirs[DEFAULT_DIR_PLAYLIST]));
+   fill_pathname_join(g_defaults.dirs[DEFAULT_DIR_REMAP], user_path,
+         "remaps", sizeof(g_defaults.dirs[DEFAULT_DIR_REMAP]));
    fill_pathname_join(g_defaults.dirs[DEFAULT_DIR_SRAM], user_path,
-         "SAVEFILES", sizeof(g_defaults.dirs[DEFAULT_DIR_SRAM]));
+         "savefiles", sizeof(g_defaults.dirs[DEFAULT_DIR_SRAM]));
    fill_pathname_join(g_defaults.dirs[DEFAULT_DIR_SAVESTATE], user_path,
-         "SAVESTATES", sizeof(g_defaults.dirs[DEFAULT_DIR_SAVESTATE]));
-   fill_pathname_join(g_defaults.dirs[DEFAULT_DIR_SCREENSHOT], user_path,
-         "SCREENSHOTS", sizeof(g_defaults.dirs[DEFAULT_DIR_SCREENSHOT]));
+         "savestates", sizeof(g_defaults.dirs[DEFAULT_DIR_SAVESTATE]));
    fill_pathname_join(g_defaults.dirs[DEFAULT_DIR_SYSTEM], user_path,
-         "SYSTEM", sizeof(g_defaults.dirs[DEFAULT_DIR_SYSTEM]));
-   fill_pathname_join(g_defaults.dirs[DEFAULT_DIR_LOGS], user_path,
-         "LOGS", sizeof(g_defaults.dirs[DEFAULT_DIR_LOGS]));
-
-   /* cache dir */
+         "system", sizeof(g_defaults.dirs[DEFAULT_DIR_SYSTEM]));
    fill_pathname_join(g_defaults.dirs[DEFAULT_DIR_CACHE], user_path,
-         "TEMP", sizeof(g_defaults.dirs[DEFAULT_DIR_CACHE]));
+         "temp", sizeof(g_defaults.dirs[DEFAULT_DIR_CACHE]));
+   fill_pathname_join(g_defaults.dirs[DEFAULT_DIR_OVERLAY], user_path,
+         "overlays", sizeof(g_defaults.dirs[DEFAULT_DIR_OVERLAY]));
+#ifdef HAVE_VIDEO_LAYOUT
+   fill_pathname_join(g_defaults.dirs[DEFAULT_DIR_VIDEO_LAYOUT], user_path,
+         "layouts", sizeof(g_defaults.dirs[DEFAULT_DIR_VIDEO_LAYOUT]));
+#endif
+   fill_pathname_join(g_defaults.dirs[DEFAULT_DIR_THUMBNAILS], user_path,
+         "thumbnails", sizeof(g_defaults.dirs[DEFAULT_DIR_THUMBNAILS]));
+   fill_pathname_join(g_defaults.dirs[DEFAULT_DIR_LOGS], user_path,
+         "logs", sizeof(g_defaults.dirs[DEFAULT_DIR_LOGS]));
 
    /* history and main config */
    strlcpy(g_defaults.dirs[DEFAULT_DIR_CONTENT_HISTORY],
          user_path, sizeof(g_defaults.dirs[DEFAULT_DIR_CONTENT_HISTORY]));
    fill_pathname_join(g_defaults.path_config, user_path,
          FILE_PATH_MAIN_CONFIG, sizeof(g_defaults.path_config));
+
+#ifndef IS_SALAMANDER
+   dir_check_defaults("custom.ini");
+#endif
 }
 
 static void reset_IOP()
@@ -101,6 +115,37 @@ static void reset_IOP()
    sbv_patch_disable_prefix_check();
 }
 
+static void load_modules()
+{
+   /* I/O Files */
+   SifExecModuleBuffer(&iomanX_irx, size_iomanX_irx, 0, NULL, NULL);
+   SifExecModuleBuffer(&fileXio_irx, size_fileXio_irx, 0, NULL, NULL);
+   SifExecModuleBuffer(&sio2man_irx, size_sio2man_irx, 0, NULL, NULL);
+
+   /* Memory Card */
+   SifExecModuleBuffer(&mcman_irx, size_mcman_irx, 0, NULL, NULL);
+   SifExecModuleBuffer(&mcserv_irx, size_mcserv_irx, 0, NULL, NULL);
+
+   /* USB */
+   SifExecModuleBuffer(&usbd_irx, size_usbd_irx, 0, NULL, NULL);
+   SifExecModuleBuffer(&usbhdfsd_irx, size_usbhdfsd_irx, 0, NULL, NULL);
+
+#if !defined(DEBUG)
+   /* CDFS */
+   SifExecModuleBuffer(&cdfs_irx, size_cdfs_irx, 0, NULL, NULL);
+#endif
+
+#ifndef IS_SALAMANDER
+   /* Controllers */
+   SifExecModuleBuffer(&mtapman_irx, size_mtapman_irx, 0, NULL, NULL);
+   SifExecModuleBuffer(&padman_irx, size_padman_irx, 0, NULL, NULL);
+
+   /* Audio */
+   SifExecModuleBuffer(&libsd_irx, size_libsd_irx, 0, NULL, NULL);
+   SifExecModuleBuffer(&audsrv_irx, size_audsrv_irx, 0, NULL, NULL);
+#endif
+}
+
 static void frontend_ps2_get_env(int *argc, char *argv[],
       void *args, void *params_data)
 {
@@ -143,34 +188,10 @@ static void frontend_ps2_get_env(int *argc, char *argv[],
 static void frontend_ps2_init(void *data)
 {
    reset_IOP();
+   load_modules();
 
-   /* I/O Files */
-   SifExecModuleBuffer(&iomanX_irx, size_iomanX_irx, 0, NULL, NULL);
-   SifExecModuleBuffer(&fileXio_irx, size_fileXio_irx, 0, NULL, NULL);
-   SifExecModuleBuffer(&sio2man_irx, size_sio2man_irx, 0, NULL, NULL);
-
-   /* Memory Card */
-   SifExecModuleBuffer(&mcman_irx, size_mcman_irx, 0, NULL, NULL);
-   SifExecModuleBuffer(&mcserv_irx, size_mcserv_irx, 0, NULL, NULL);
-
-   /* USB */
-   SifExecModuleBuffer(&usbd_irx, size_usbd_irx, 0, NULL, NULL);
-   SifExecModuleBuffer(&usbhdfsd_irx, size_usbhdfsd_irx, 0, NULL, NULL);
-
-#if !defined(DEBUG)
-   /* CDFS */
-   SifExecModuleBuffer(&cdfs_irx, size_cdfs_irx, 0, NULL, NULL);
-#endif
 
 #ifndef IS_SALAMANDER
-   /* Controllers */
-   SifExecModuleBuffer(&mtapman_irx, size_mtapman_irx, 0, NULL, NULL);
-   SifExecModuleBuffer(&padman_irx, size_padman_irx, 0, NULL, NULL);
-
-   /* Audio */
-   SifExecModuleBuffer(&libsd_irx, size_libsd_irx, 0, NULL, NULL);
-   SifExecModuleBuffer(&audsrv_irx, size_audsrv_irx, 0, NULL, NULL);
-
    /* Initializes audsrv library */
    if (audsrv_init())
    {
@@ -201,7 +222,7 @@ static void frontend_ps2_init(void *data)
 #endif
 
 #if !defined(DEBUG)
-   waitUntilDeviceIsReady(bootDeviceID);
+   waitUntilDeviceIsReady(cwd);
 #endif
 }
 
@@ -272,7 +293,6 @@ static void frontend_ps2_exitspawn(char *s, size_t len, char *args)
    frontend_ps2_exec(s, should_load_content);
 }
 
-static void frontend_ps2_shutdown(bool unused) { }
 static int frontend_ps2_get_rating(void) { return 10; }
 
 enum frontend_architecture frontend_ps2_get_arch(void)
@@ -337,7 +357,7 @@ frontend_ctx_driver_t frontend_ctx_ps2 = {
 #else
    frontend_ps2_set_fork,        /* set_fork */
 #endif
-   frontend_ps2_shutdown,        /* shutdown */
+   NULL,                         /* shutdown */
    NULL,                         /* get_name */
    NULL,                         /* get_os */
    frontend_ps2_get_rating,      /* get_rating */
diff --git a/libretro-common/libco/libco.c b/libretro-common/libco/libco.c
index 36cd7da8f3..44a65d528f 100644
--- a/libretro-common/libco/libco.c
+++ b/libretro-common/libco/libco.c
@@ -29,6 +29,8 @@ void genode_free_secondary_stack(void *stack);
     #include "ppc.c"
   #elif defined(__aarch64__)
     #include "aarch64.c"
+  #elif defined(PS2)
+    #include "ps2.c"
   #elif defined(PSP)
     #include "psp1.c"
   #elif defined VITA
diff --git a/libretro-common/libco/ps2.c b/libretro-common/libco/ps2.c
new file mode 100644
index 0000000000..65a9c09864
--- /dev/null
+++ b/libretro-common/libco/ps2.c
@@ -0,0 +1,66 @@
+#define LIBCO_C
+#include "libco.h"
+
+#include <stdlib.h>
+#include <stdint.h>
+#include <kernel.h>
+
+/* Since cothread_t is a void pointer it must contain an address. We can't return a reference to a local variable
+ * because it would go out of scope, so we create a static variable instead so we can return a reference to it.
+ */
+static int32_t active_thread_id = -1;
+extern void *_gp;
+
+cothread_t co_active()
+{
+  active_thread_id = GetThreadId();
+  return &active_thread_id;
+}
+
+cothread_t co_create(unsigned int size, void (*entrypoint)(void))
+{
+  /* Similar scenario as with active_thread_id except there will only be one active_thread_id while there could be many
+   * new threads each with their own handle, so we create them on the heap instead and delete them manually when they're
+   * no longer needed in co_delete().
+   */
+  cothread_t handle = malloc(sizeof(cothread_t));
+  ee_thread_t thread;
+
+  // u8 threadStack[size/8] __attribute__ ((aligned(16)));
+  void *threadStack = (void *)malloc(size);
+
+  if ( threadStack== NULL)
+	{
+		printf("libco: ERROR: creating threadStack\n");
+		return(-1);
+	}
+
+	thread.stack_size		= size;
+	thread.gp_reg			= &_gp;
+	thread.func				= (void *)entrypoint;
+	thread.stack			= threadStack;
+	thread.option			= 0;
+  thread.initial_priority = 1;
+
+  int32_t new_thread_id = CreateThread(&thread);
+	if (new_thread_id < 0)
+		printf("libco: ERROR: creating thread\n");
+
+  StartThread(new_thread_id, NULL);
+  *(uint32_t *)handle = new_thread_id;
+  return handle;
+}
+
+void co_delete(cothread_t handle)
+{
+  TerminateThread(*(uint32_t *)handle);
+	DeleteThread(*(uint32_t *)handle);
+  free(handle);
+}
+
+void co_switch(cothread_t handle)
+{
+  WakeupThread(*(uint32_t *)handle);
+  /* Sleep the currently active thread so the new thread can start */
+  SleepThread();
+}
diff --git a/ps2/compat_files/ps2_devices.c b/ps2/compat_files/ps2_devices.c
index 5a0f27db23..6dfe3ec9f8 100644
--- a/ps2/compat_files/ps2_devices.c
+++ b/ps2/compat_files/ps2_devices.c
@@ -160,16 +160,15 @@ enum BootDeviceIDs getBootDeviceID(char *path)
  * This will ensure that the emulator will be able to load its files.
  */
 
-bool waitUntilDeviceIsReady(enum BootDeviceIDs device_id)
+bool waitUntilDeviceIsReady(char *path)
 {
-   struct stat buffer;   
+   struct stat buffer;
    int ret = -1;
-   int retries = 100;
-   char *rootDevice = rootDevicePath(device_id);
+   int retries = 50;
 
    while(ret != 0 && retries > 0)
    {
-      ret = stat(rootDevice, &buffer);
+      ret = stat(path, &buffer);
       /* Wait untill the device is ready */
       nopdelay();
 
diff --git a/ps2/include/ps2_devices.h b/ps2/include/ps2_devices.h
index a2bc283572..5c0faa7d8e 100644
--- a/ps2/include/ps2_devices.h
+++ b/ps2/include/ps2_devices.h
@@ -45,6 +45,6 @@ char *rootDevicePath(enum BootDeviceIDs device_id);
 
 enum BootDeviceIDs getBootDeviceID(char *path);
 
-bool waitUntilDeviceIsReady(enum BootDeviceIDs device_id);
+bool waitUntilDeviceIsReady(char *path);
 
 #endif