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Andir said:
The dedicated hardware for video encoding? You mean the Cell and RSX? What the heck are you talking about? It would be video decoding for playback anyway. I think you've been reading too many 360 fanboy posts.

They're called Hardware Decoders and I haven't been able to find a source which states whether the PS3 uses them or not (I've seen several fanboy sites argue both sides, some claiming the 'Power of the Cell' is so great it outperforms hardware decoders and others claiming that Sony included hardware decoders because they wanted to deliver the best viewing experience)

Regardless, if it is already a software decoder why not stop forcing everyone to buy the Blu-Ray licence and allow them to download the decoder at some nominal fee? Why is Sony stripping in-demand features which can not be easily replaced when they can remove features which are easy to return for those people who actually want them?