RetroPie
RetroPie is a native operating system based on emulationstation, which houses a multitude of legacy gaming console emulators.
Installation
You can download the RetroPie image here. Once downloaded, you can install the image to your SDCard via dd in linux, for example:
$ gunzip -c /home/gr0x0rd/Downloads/retropie-4.1-rpi2_rpi3.img.gz | sudo dd of=/dev/sdg
Once the dump is complete, insert the SDCard into the PI and fire it up. Eventually you will arrive at the main RetroPie screen.
Configuration
RetroPie will ask you to configure and input device. The operating system is designed to work with a gamepad, but if you have your keyboard plugged in you can configure it by holding a button for a few seconds. It would be advisable to use the corresponding arrows for left/right/up/down, enter for start, b for b and a for a.
PS3 Controller
If you have a bluetooth PS3 controller, this sadly won't work out-of-the-box. You will need to press start to access the main RetroPie menu, then choose "RetroPie setup".