Sony plans to introduce support for AVC High Profile (H.264/MPEG-4) file playback in a new firmware update due out soon.
The firmware, version 1.82, will be released "in the next few days", PlayStation Network Operations Director Eric Lempel said in a post on Sony Computer Entertainment America's blog.
Recent PS3 firmware updates have introduced the ability to upscale DVDs, PS1 and PS2 games to 1080p resolutions, to downscale Blu-ray video to 720p and to view files stored on a home network.
However, there has been a mixed reaction to firmware updates from those who intend to play older games on their PS3s, with the level of support for several key titles including Metal Gear Solid 3: Snake Eater from Konami seemingly in fluctuation.
In his blog post of Monday 26th June, Lempel perhaps anticipated this concern when he added: "We're continuing to evaluate and improve things across the board, including PS2 software compatibility."