Yes, you can.
It’s actually reasonably stable too. So far we’ve had four people on it at once doing a variety of things and the only significant slow-down from the server was when I accidentally set a large portion of the world on fire. It complains a bit about not being able to keep up, but the actual experience is fine. This is even without using the graphics memory as swap since that is corrupted on my PS3 (which is why I never upgraded it to a version that disallows Linux), just using the normal memory and a fastish flash drive.