SOURCE: will playstation 3 play blu ray movies off usb
the PlayStation 3 can read just about any usb memory stick and play can movies from them, since a usb's bandwidth is significantly lower then the ps3 hard drive it's recommend to copy the movie to the ps3's hard drive.
also it matters how the movie was converted. some converted movies wont play on the ps3 no matter what codec your using to encode the movie with.
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