Ubuntu's default ~/.bashrc (copied over from /etc/skel/.bashrc when you
create new user accounts) overrides PS1 when $TERM is xterm*. When you
open new terminal windows or tabs, bash sources /etc/bash.bashrc and
then ~/.bashrc, and thus your global PS1 setting is overwritten.
Do the change in ~/.bashrc instead of in /etc and you'll be fine.
** Changed in: gnome-terminal (Ubuntu)
Status: New => Invalid
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https://bugs.launchpad.net/bugs/1406980
Title:
/etc/profile does not get sourced when logging into a terminal window
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