In the latest firmware 2.0 update, Xvid and Divx files can now be detected as video options on the PS3.
Quote from PSU:
Now the files still won't work on the PlayStation 3, but this new find may lead us to believe Sony is planning to support both Xvid and Divx files in the future. My guess is that Sony may be doing this so that when Home is launched, users can convert their files to Divx (for smaller file sizes) and use them to display in their Home studios.
Divx is well known in the internet world for its ability to compress lengthy video to smaller storage sizes, without losing visual quality. Xvid (Divx spelled backwards) is a direct competitor to Divx, providing similar compression features and supporting MPEG 4 and H.263 video formats.
If Sony plans to fully support these video formats, this will help when importing videos into your PlayStation Home as they will upload faster without losing quality.
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That is going to cost Sony a LOT of money to licence.
Home is definitely intriguing to say the least.
MS now HAVE to put DIVX support in the fall update.
Thats why competition is good for us consumers.
Yes.
I want this more than any other update. More than ingame music, XMB or anything else. If cheap arse DVD players can do it why not PS3? I have a 500gb external plug into my PS3 and it would just become a big fat photo/music/movie jukebox.
this is exactly what i've been waiting for, more than any other feature