I'm assuming it does. I read somewhere that it didn't and I wanted to make sure. I'm going to get a PS3 soon one way or the other and the High Def drive in it is interesting to me now that I have a TV that can take advantage of it. I know the Toshiba HDDVD drives are pretty darn good at upscaling SD DVDs but I don't know a thing about the BR drives (specifically the PS3 version).
So... If anyone can give me an informed answer other than "yeah, I think it does" would be most appreciated.